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Biofuels of Helena-West Helena, Arkansas - September 2008
Re: Numerous Prospects Contact Port Authority; Wait With RBE Arkansas Continues
HELENA-WEST HELENA- Numerous prospects continue to show interest in the Phillips County Port Authority, and RBE Arkansas is restructuring its financing package in response to changes demanded by prospective lenders in the wake of the nation's banking crisis.
Port Authority Executive Director Martin Chaffin opened his report with a summary of newer prospects that are showing interest in the port. He said, "We have a steel fabrication operation that is working to get its projected construction costs together for presentation to the state for possible incentives."
Chaffin continued, "We also have a German company from the automotive industry that is examining potential sites at the port. They contacted me this month to say that they are still gathering data, but our site is still in the running."
Most of the discussion centered around the efforts of RBE Arkansas to get financing for its $1.8 billion project at the Helena Harbor. Chaffin said, "Rod Miller is being forced to restructure the package after several banks indicated that they could not do loans of $600 million as originally proposed. The deal is being restructure to bring in more banks at about $350 million each. The banking crisis probably kept us from being able to complete the deal this month."
Board Member Todd Stewart indicated that he understood. However, he inquired about the status of the land option. After learning that it expired in October, Stewart said, "I think an extension should not come for free. I believe Rod should come up with some more money." Board Members made no final decision on the matter, electing to wait and see if Miller could get the financing finalized by the expiration date of the option on Halloween.
The Board also continued its discussion of bringing in an outside consultant to evaluate port operation and make recommendations. Earlier in the month, some members of the Board had attended a presentation from a potential consultant at the invitation of Ben Steinberg of Southern Financial Partners. No action was taken on that matter.
