Development Agreement-Preliminary

As I noted below, I have now obtained a Draft of the Development Agreement proposed to be entered by the City of Great Falls, Electric City Power and SME. Since I have been away on vacation, I have not had an opportunity to review it in detail. I have, however, been able to skim it. At this point, I have a couple questions.

First, what does this language mean from page 10 of the Agreement: "[The parties] also understand that although issues involving the Federal Budget and funding of new generation by RUS may presently preclude RUS from approving and advancing funds for SME's portion of the Project, those issues may be resolved at any time." It sounds like SME's share of the money is not as much of a 'done deal' as some might want us to believe. Could it be that the strong statements are meant to discourage the opposition?

Second, the Development Agreement is a long, very specialized and very complex document. Have the City Commissioners read it? What expert in the field of power plant financing is advising the City Commission on the legal ramifications inherent in this document? What are the strengths, weaknesses, risks, and benefits from our point of view? Who is advising us?

No comments: