Legislature(2019 - 2020)SENATE FINANCE 532
03/19/2019 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB38 | |
| Aidea: Update on Projects, Investments and Cash Flow | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| + | TELECONFERENCED | ||
| += | SB 38 | TELECONFERENCED | |
SENATE FINANCE COMMITTEE
March 19, 2019
9:01 a.m.
9:01:29 AM
CALL TO ORDER
Co-Chair Stedman called the Senate Finance Committee
meeting to order at 9:01 a.m.
MEMBERS PRESENT
Senator Natasha von Imhof, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Click Bishop
Senator Peter Micciche
Senator Lyman Hoffman
Senator Donny Olson
Senator Mike Shower
Senator Bill Wielechowski
Senator David Wilson
MEMBERS ABSENT
None
ALSO PRESENT
Tom Boutin, Executive Director, Alaska Industrial
Development and Export Authority (AIDEA); Senator Cathy
Giessel.
PRESENT VIA TELECONFERENCE
Stephanie Richard, Department of Military and Veterans
Affairs, Juneau.
SUMMARY
SB 38 APPROP: SUPP; CAP; DISASTER RELIEF
CSSB 38(FIN) was REPORTED out of committee with
four "do pass" recommendations and four "no
recommendation" recommendations.
AIDEA: UPDATE ON PROJECTS, INVESTMENTS and CASH FLOW
SENATE BILL NO. 38
"An Act making supplemental appropriations for fire
suppression activities and restoration projects
relating to earthquake disaster relief; capitalizing
funds; and providing for an effective date."
9:02:27 AM
Co-Chair Stedman addressed the history of the bill in the
committee. He discussed additional housekeeping.
9:02:58 AM
Senator Wilson MOVED to REPORT SB 38, Work Draft 31-
GS1037\U (Caouette, 3/13/19) from committee with individual
recommendations.
9:03:11 AM
Senator Olson OBJECTED.
9:03:17 AM
Senator Olson asked about the information that had been
requested at a previous meeting concerning sole source
contracts. He wondered whether the information had been
submitted to the committee.
Co-Chair Stedman said he would check with his staff.
9:03:50 AM
AT EASE
9:04:00 AM
RECONVENED
9:04:05 AM
Co-Chair Stedman announced that the committee had not
received the information. He requested further information
from the Department of Military and Veterans Affairs
(DMVA).
9:04:28 AM
STEPHANIE RICHARD, DEPARTMENT OF MILITARY AND VETERANS
AFFAIRS, JUNEAU (via teleconference), shared that the
department was working to gather the information and would
follow up with the committee.
9:05:00 AM
Senator Olson was eager to receive the information.
9:05:07 AM
Co-Chair Stedman asked whether the department had awarded
sole source contracts.
9:05:13 AM
Ms. Richard replied that she did not know if sole source
contracts had been awarded. She relayed that there are
strict criteria for sole course contracts and that
communities would need to pre-approve them in advance. She
said she needed to get the list from the Division of
Homeland Security and Emergency Management.
9:05:48 AM
Co-Chair Stedman queried the timeline expected for the
response. He noted the April 1, 2019 deadline for funding.
9:05:58 AM
Ms. Richard agreed to reach out to the division
immediately.
9:06:17 AM
Senator Olson WITHDREW his OBJECTION. There being NO
further OBJECTION, it was so ordered.
CSSB 38(FIN) was REPORTED out of committee with four "do
pass" recommendations and four "no recommendation"
recommendations.
^AIDEA: UPDATE ON PROJECTS, INVESTMENTS and CASH FLOW
9:07:15 AM
TOM BOUTIN, EXECUTIVE DIRECTOR, ALASKA INDUSTRIAL
DEVELOPMENT AND EXPORT AUTHORITY (AIDEA), discussed the
presentation, "Alaska's Development Finance Authority"
(copy on file).
9:09:17 AM
Mr. Boutin looked at Slide 2, "FY 2018 Highlights":
• 1501 permanent jobs
• 738 construction jobs
• $1.33 Billion net position
• $161.98 million conduit bonds issued
• $12.88 million dividend paid
• $88.5 million total gross loan participations funded
Mr. Boutin noted that the $1.3 billion net position was an
audited number. He invited members to refer to the
comprehensive annual financial report (CAFR) for further
details.
9:10:03 AM
Mr. Boutin addressed Slide 3, "Mission and Overview":
To advance economic growth and diversification in
Alaska by providing various means of financing and
investment
• Alaska Industrial Development and Export
Authority (AIDEA)
o Semi-independent public corporation
o 7 member board
o Self funded
o Pays an annual dividend to the State of
Alaska - $407 million declared since 1997
• Revolving Fund = $1.32 billion in assets.
• S and P Co-Chair AA+ credit rating (independent
of the State of Alaska Rating
Mr. Boutin highlighted Slide 4, "Guiding Principles":
AIDEA's primary goal is to encourage economic growth
and diversification, with a focus on encouraging
economic activity that is additive to the economy.
AIDEA is here to make good projects better, not bad
projects good.
AIDEA brings process and pragmatism to development
finance opportunities
AIDEA does NOT provide grants or incentives.
AIDEA does not undertake the Field of Dreams notion
of "build it and they will come."
9:11:41 AM
Senator Olson looked at Slide 3. He asked about the annual
dividend AIDEA paid to the state. He asked whether a
breakdown for payments for the last several years could be
made available.
9:11:58 AM
Mr. Boutin replied that an upcoming slide would address
that question.
9:12:22 AM
Mr. Boutin addressed Slide 5, "Diverse Portfolio." The
slide depicted a bar graph illustrating the diversity of
AIDEAs combined capacity projects and loans.
9:13:17 AM
Mr. Boutin discussed Slide 6, "Responsible Stewards of
Public Funds." The slide offered a bar graph that showed
loans, development project investments and bonds versus
impairments since July 1, 2000. He said that there was a
low number of problem loans after 2000. He said that before
2000, the Healy project would have skewed the graph due to
write-offs.
9:13:59 AM
Co-Chair Stedman queried the Healy project and the write-
offs.
9:14:03 AM
Mr. Boutin replied that it was the Healy Clean Coal Project
that AIDEA had sold; a write-down had been required to
achieve an amenable price for the sale.
9:14:28 AM
Co-Chair Stedman understood that it was a coal generation
project in the Fairbanks area that the state had struggled
with for decades.
9:14:59 AM
Mr. Boutin agreed. He said that copious federal dollars had
been spent on the project, which had been aggressively
advertised for high-tech qualities. He believed that the
problem with the project had been that the trial period,
required before the state was to take possession, had used
a different quality of coal than the plant had intended to
use going forward. He said that as soon as the different
coal was used the pollution controls failed.
9:16:12 AM
Co-Chair von Imhof look to Slide 6. She asked about the
definitions for projects and conduit bonds.
Mr. Boutin responded that the Conduit Bond Program was a
financing program in which AIDEA did not lend any credit
but facilitated the sale of debt. He said that the program
had been regularly used by health care providers. He told
the story of the creation of Wildflower Court in Juneau,
and how the program was used in that instance.
9:19:01 AM
Mr. Boutin said that projects was a subjective. He said
that AIDEA owned many projects around the state. He said
that AIDEA occasionally financed projects and then
eventually took ownership of them or was sometimes such a
large part of the project as a lender that the loans would
be categorized as projects.
9:20:26 AM
Mr. Boutin discussed Slide 7, "What Does AIDEA Do?"
Secures and deploys capital for economic growth and
job opportunities across all commercial, industrial
and infrastructure sectors
Debt
• Loan Participations
• Energy Loans
• Project Finance Loans
• Conduit Revenue Bonds
Equity
• 100 percent Ownership of project
• Partner in LLC or Subsidiary Corporation
• Secured and Collateralized
• Equity Equivalent Investments
Enhancements
• Loan Guarantees
• Bond Guarantees
9:22:27 AM
Co-Chair Stedman asked Mr. Boutin to define duration as
it pertained to AIDEA loans.
9:22:29 AM
Mr. Boutin replied that a loan was a fixed-income
investment and that a duration was a way to expressed
average maturity of a loan.
9:23:09 AM
Senator Wielechowski queried how AIDEA made investment
decisions.
Mr. Boutin shared that over past decades. Investment
requests had been made by the executive branch. He detailed
several of those investments. He said that all decisions
went through the loan committee and then had to be vetted
by the board.
9:25:09 AM
Senator Wielechowski asked whether the board had made the
decision to pay oil tax credits, and if so, what was the
expected rate of return.
9:25:24 AM
Mr. Boutin replied that the issue had not been taken to the
board. Alternative methods for paying oil tax credits had
been under discussion and he believed that AIDEA was near
resolution on how to make the payments. He thought that it
would take several more weeks to reach resolution but
stressed that he believed that the credits were due.
9:27:31 AM
Co-Chair Stedman admitted that the credits were a liability
for the state. He noted preliminary discussions that had
occurred on the concept of having AIDEA step in and devise
a mechanism to pay the credits. He said that when a
proposal was ready it would be presented to the committee.
9:28:53 AM
Senator Olson wondered about cash on hand versus the
governors proposed payment of the oil tax credits. He
worried that paying the credits would drain the funds
available for other projects.
9:29:20 AM
Mr. Boutin responded that AIDEA was seeking alternative
ways to pay the credits, while accommodating the projects
that were already underway.
9:30:01 AM
Senator Olson asked whether the stretching of finances
should be cause for concern.
9:30:21 AM
Co-Chair Stedman interjected that there is a statutory
requirement to pay a certain amount in oil tax credits each
year, which would be reflected, in-full, in the FY 20
budget. He said that if an alternative solution could be
agreed upon before the budget was released, that option
could be exercised. Otherwise, the statutory minimum would
be paid. He hoped that further discussions on the issue
could occur but felt that it was not the crux of todays
presentation.
9:31:56 AM
Senator Olson spoke of the Mark Air hangers purchased years
ago by a previous administration, through AIDEA.
9:32:42 AM
Co-Chair Stedman thought that many legislators had hopes
that viable, profitable projects would provide dividends to
the state to fund robust, job creating, Capital Budgets.
9:33:14 AM
Mr. Boutin addressed Slide 8, "AIDEA Programs":
AIDEA injects money into the economy utilizing a
number of financial tools
Commercial Finance
• AIDEA partners with the state's lending
institutions to provide long-term, fixed-rate
financing in support of the commercial real
estate sector
• Since 1992 AIDEA has loaned $1.08 billion
• Created and Retained 8.800 construction jobs
and 9,260 permanent jobs
Conduit Revenue Bonds
square4 Issued 319 bonds for a total of $1.54 billion
square4 Provides access to external capital markets for
non-profits and businesses
Project Finance and Infrastructure Development (Sec.
172)
• AIDEA works with industrial and commercial
partners to build out much needed
infrastructure that supports economic
development
Energy and Arctic Infrastructure Development
9:33:59 AM
Co-Chair von Imhof wondered whether programs in other
states had been investigated to determine best practices
when deploying state lending programs.
9:35:07 AM
Mr. Boutin replied not yet. He said that talks with AIDEAs
counterparts in other states were frequent and continuous.
He said that he had not read the report from the consulting
group in Boston. He felt that this was an area that should
be enhanced.
9:37:40 AM
Senator Wielechowski expressed concern that, in the past,
AIDEA had acted at the direction of the Executive Branch.
He said that under statute, AIDEA was supposed to be a
sperate and independent entity. He requested a list of all
actions AIDEA had taken at the direction of the Executive
Branch.
Mr. Boutin agreed to provide the information.
9:38:12 AM
Senator Shower asked about the criteria used by AIDEA to
determine the 9,260 permit jobs.
9:39:00 AM
Mr. Boutin replied that the number represented the jobs
employed in a project. He felt that the numbers were an
accurate representation. He shared that AIDEA was directed
by law to provide jobs, which was an important metric,
along with return on investment.
9:40:15 AM
Mr. Boutin addressed Slide 9, "AIDEA Sec. 172 Projects."
The slide where the various projects were located on in
Alaska for both unincorporated and incorporated boroughs.
He noted that several projects were carried on the books
for significant cost but would not reap the same return on
investment once those projects were sold.
9:42:04 AM
Co-Chair von Imhof asked whether AIDEA was still involved
in the Interior Energy Project in Fairbanks.
9:42:13 AM
Mr. Boutin replied yes. He said that AIDEA was set to meet
with members of that project to discuss bond participation
notes. He said that he did not know very much about the
project. He thought that the current status was that $15
million in bond anticipation notes were going to be sold,
which would be taken out by selling bonds.
Mr. Boutin highlighted Slide 10, "Process and Pragmatism."
The slide offered a chart that illustrated the four phases
in AIDEAs project analysis and decision-making process.
9:44:24 AM
Co-Chair Stedman asked how much AIDEA had invested in the
Fairbanks project.
9:44:34 AM
Mr. Boutin replied that he would get back to the committee
with information on the project.
9:44:49 AM
Co-Chair von Imhof requested the dollar figure.
9:44:58 AM
Co-Chair Stedman requested a full write up on AIDEAs
involvement in the project
9:45:05 AM
Mr. Boutin understood that it had been an Executive Branch
dire4cted project. He said he would get back to the
committee with the information.
9:45:17 AM
Senator Wielechowski queried the May 2018 request from Co-
Chair Stedman for an audit of the loan given for the
Mustang Operations Center 1. He wondered whether the loan
had been compliant with state statute and if the loan had
been offered to other companies.
9:45:41 AM
Co-Chair Stedman thought that the question should be
answered in the requested audit.
9:45:56 AM
Mr. Boutin agreed to provide a response to the question in
writing.
9:46:21 AM
Senator Wilson asked whether the cuts to the Alaska Marine
Highway System (AHMS) would negatively affect the Ketchikan
Shipyard.
9:46:53 AM
Mr. Boutin replied that the two ferries were complete. He
said that AMHS was a prospective customer.
Co-Chair Stedman argued that AMHS was more than a
prospective customer.
9:46:59 AM
Mr. Boutin said he was unaware of the effects of the FY 20
budget on the AMHS related to the shipyard in Ketchikan. He
said that the shipyard had several projects planned, but
that the shipyard needed to ensure confidentiality, because
of possible competitors. He remarked that the viability for
the shipyard would have more specific written explanations
in June 2019. He stated that various industries would
utilize that shipyard.
9:49:53 AM
Co-Chair Stedman clarified that the shipyard was called the
Alaska Ship and Drydock and that the shipyard had been
constructed to facilitate the maintenance of AMHS vessels.
The marine highway vessels were the shipyards base
customer. He requested information on the financial impact
to the shipyard from the proposed elimination of the AMHS.
He specified that he wanted information related to the
amount invested in the shipyard by AIDEA, the amount AIDEA
currently carried on the books, and the estimate of the
final buildout. He believed that losing its base tenant
would have a significant effect on the viability of the
shipyard.
Mr. Boutin was glad to provide the information.
Co-Chair Stedman reiterated that the committee would find
the information useful. He stressed that the committee was
working to craft a budget that provided for year-round
ferry service, at a reduced schedule, and that part of the
collateral damage of the elimination of the marine highway
would be the shipyard.
Mr. Boutin was happy to provide the information.
9:52:39 AM
Mr. Boutin addressed Slide 10, "Process and Pragmatism,"
which showed the process that AIDEA undertook for projects
and loan applications. There was a table entitled 'AIDEA
Project Analysis and Decision-Making Process.' The slide
showed that 4 Phase process used prior to funding, final
design, construction, and operation.
9:53:59 AM
Senator Wielechowski requested details for the process used
for the issuance of payment for oil tax credits.
9:54:04 AM
Mr. Boutin replied in the affirmative.
9:54:07 AM
Co-Chair Stedman thought that the conversation should be
held once an oil tax policy was under discussion at the
table.
9:54:56 AM
Mr. Boutin agreed.
9:55:02 AM
Co-Chair von Imhof asked whether an operator of a project
was expected to share its financial information with AIDEA
on a periodic basis.
9:55:27 AM
Mr. Boutin replied no. He said that project financings
included thorough information. He said AIDEA did not have a
way to access financial information for large companies
that operated nationally.
9:56:41 AM
Co-Chair von Imhof understood that AIDEA had the ability to
monitor the books for AIDEA specific projects and the
operators of those projects.
9:56:56 AM
Mr. Boutin agreed. He stated that he had reviewed financial
information for most of the large AIDEA operations. He
lamented that the information was often incomplete.
9:57:34 AM
Mr. Boutin discussed Slide 11, "AIDEA Dividend." The slide
showed the dividend history from 2007. He noted that the
aggregate dividend amount was $407 million since 1997.
9:58:04 AM
Co-Chair Stedman asked about the decrease in the dividend
numbers in 2010 and 2019.
Mr. Boutin replied that the calculation was set in statute.
He cited a letter from January 10, 2019 that stated:
The authority determines that the amount of excess
unrestricted assets that may be available for FY 2020
is $10,285,000 under A.S. 44.88.088. This is 31
percent of the FY 2018 statutory net income.
Mr. Boutin relayed that the letter contained a substantial
amount of background on the AIDEA dividend calculation.
9:58:07 AM
Co-Chair Stedman wondered about the decline in statutory
net income, and why the dividend portion for the FY 20
budget was 31, not 50 percent.
9:58:28 AM
Mr. Boutin said that he would submit a comprehensive
written response to the committee.
9:59:58 AM
Co-Chair Stedman hoped that the response could include an
explanation for the downward trend over the past decade. He
expressed concern with the decreasing numbers and hoped for
a reversal in the numbers.
10:02:36 AM
Senator Micciche asked whether AIDEA was diversifying
Alaskas economy with solid, sustainable projects that
might not have occurred without the organization. He asked
whether Mr. Boutin had a different vision for AIDEA than
the current lackluster performance reflected in the
return to the state on investments in recent years.
10:03:36 AM
Mr. Boutin disagreed that AIDEAs performance in the past
had been lackluster. He cited the creation of the Delong
Mountain Transportation Revenue Bond Financing Documents,
which was a project that returned at 6.5 percent. He noted
that the project had allowed for the formation of a
borough, which relied on the financial support of The Red
Dog Mine. He spoke of AIDEA having objectives beyond
maximizing return for risk. He explained that AIDEA has a
patient capital objective; it was private equity without
the clear objective to simply maximize return in dollars.
He provided the example of the Constantine Mine, outside of
Haines. He said that AIDEA would likely provide seed
capital for the project and the return on investment would
result in a different result than if they were an investor
in minerals or equities of mining companies. He felt that
the completion of the returns received by AIDEA showed that
the sate was earning in its liquidity 1.7 percent in short-
duration treasuries. The Commercial Lending Program had
$439 million in outstanding commercial loans and was
showing a return of 4.5 percent. He noted other projects
and their respective rates of return.
10:07:33 AM
Co-Chair Stedman said that details on the financial trends
could be submitted to the committee in writing.
10:08:11 AM
Senator Wielechowski asked about ADIEAs $1.32 billion in
assets and the dividend percentages for 2018 and 2019. He
surmised that the dividend was less than half a percentage
in 2018, and 1 percent in 2019.
10:08:55 AM
Co-Chair Stedman interjected that a return on asset
analysis could be submitted to the committee that clarified
the dividend percentage.
10:09:31 AM
Mr. Boutin looked at Slide 12, "FY 2020 Operating Budget."
He shared that the travel amounts had been submitted before
the administration had cut travel by 50 percent. He related
that AIDEA had recently had 82 positions, 33 which were
shared between ADIEA and the Alaska Energy Authority (AEA).
10:10:41 AM
Co-Chair Stedman requested a historic lookback for the
travel expenses line item.
10:11:01 AM
Senator Wielechowski understood that AIDEA funded 18
positions with the $11,982.6 in personal services.
10:11:14 AM
Mr. Boutin said no. He said that the line item reflected
the 82 positions, half of which were shared between AEA and
AIDEA.
10:11:51 AM
Mr. Boutin displayed Slide 13, "AIDEA FY19 Highlights":
Commercial Loans Funded:
$37,292,000
Commercial Loan Commitments and Pending Applications
(1/31/19):
$45,509,000
Commercial Loan Cash Inflows (P and I, net of fees):
$20,561,000
Project Finance Fundings (projected):
$30,000,000
10:13:05 AM
Senator Wielechowski asked how much of AIDEAs assets were
not currently loaned or invested for statutory purposes.
10:13:21 AM
Mr. Boutin said that the response to the question was
multi-faceted.
10:13:30 AM
Co-Chair Stedman stated that the response could be
submitted to the committee later. He assumed that the four
categories listed on Slide 13 included the majority AIDEAs
revenue stream.
10:13:49 AM
Mr. Boutin replied no. He said that he could provide a
breakdown.
10:13:53 AM
Co-Chair Stedman requested that he roll the breakdown into
the response to the earlier question on the decline of the
dividend.
10:14:01 AM
Mr. Boutin agreed to provide that information.
10:14:12 AM
Mr. Boutin addressed Slide 14, "Revolving Fund Cash Flows -
5 years back and 5 Years Forward ($ in thousands)." The
slide charted, in thousands, the inflows and out flows of
the following:
• Loans
• Other Outflows
• Capital Projects
• Loans & Capital Projects
• Investments
• Debt Service
• Other Inflows
• Dividend
Mr. Boutin shared that Slide 15 included footnotes to Slide
14:
(1) Inflows from loans are net of all fees and
expenses. Projections include all loans
outstanding as of June 30, 2018.
(2) Project inflows from existing Authority
development projects and those under agreement,
including two projects accounted for as loans.
(3) Historical capital projects cash flows include
federal and state funding. Projected cash flows
do not include federal and state funding.
(4) Other projected outflows include operating costs
per the enacted FY2019 budget, and the proposed
FY2020 budget with a 3 percent increase
thereafter.
(5) Debt service outflows represents requirement for
bonds outstanding at June 30, 2018.
(6) Assumes $10 million annual dividend is within
statutory requirements and is used for projection
purposes only.
(7) Cash flow exclude Snettisham activity and cash
flows from Pentex Alaska Natural Gas Company,
LLC.
(8) Projected cash flows do not include impact of AEA
personnel services provided by AIDEA.
Mr. Boutin said that more comprehensive cash-flow
projections had been done for purposes of examining oil tax
credits.
10:16:08 AM
Co-Chair Stedman expected that all the data generated by
todays questions would be brought forward as cash-flow
analysis for future oil tax credit policy discussions.
10:16:28 AM
Senator Wielechowski looked at Slide 14 and noted in the
five years ahead, reduced activity was expected.
10:16:41 AM
Mr. Boutin replied that there would be projects, but none
were reflected, because they had not yet been approved by
the board. He remarked that in many cases, projects were
quite far from being approved by the board. He categorized
the projection on the slide as a shutter down projection,
as opposed to a going concern projection.
10:17:45 AM
Senator Wilson asked about proposed projects not yet
considered by the board, namely, the South Denali Project.
10:17:54 AM
Mr. Boutin replied that there were discussions ongoing
about the project.
10:18:11 AM
Senator Bishop requested clarification on the term shutter
down.
10:18:22 AM
Mr. Boutin replied that projects that had not been approved
by the board had not been included in the budget cash-flow.
10:18:40 AM
Senator Bishop asked what AIDEAs vision was under the
current administration, and a list of AIDEAs top 3
priority projects.
10:18:54 AM
Mr. Boutin replied that the first likely project was the
Constantine Palmer Project, outside of Haines. He said that
a draft Environmental Impact Statement would be released in
August 2019 for a project in Ambler. He said that AIDEA
will have put $17 million, cash, into the project by
December; the project would either require more cash or
would become a revenue bond funded project. He shared that
the project was large enough to attract litigation but was
on schedule. He admitted that the project could take
several years. He stated that a smaller project was a
possible second dock at Icy Strait Point.
10:21:16 AM
Senator Olson asked about the Ambler district and the
graphite deposit between Nome and Teller.
10:21:41 AM
Mr. Boutin did not believe that an application for the
project had been received by AIDEA.
10:21:49 AM
Co-Chair von Imhof said that the passage of HB 119, in
2018, had changed the way AIDEAs dividend was calculated,
the intent being that the dividend would better reflect the
cash based, realized net income of the funds from which the
dividend was paid. She said that the bill added a
definition for mark to market and amended the definition
of net-income and unrestricted net-income. She asked
whether projections for future fiscal years reflected the
intent of HB 119.
10:22:37 AM
Mr. Boutin replied that he did not believe so. He felt that
the $10 million was a "place holder," and did not reflect
the changes from HB 119.
10:23:10 AM
Co-Chair von Imhof requested a new cash flow estimate using
the factors in HB 119.
10:24:06 AM
Mr. Boutin agreed to provide that information. He warned
that cash-flow and market rates of return used two
different metrics.
10:24:25 AM
Co-Chair Stedman requested that Mr. Boutin detail any
problems AIDEA could encounter with the implementation of
HB 119.
10:24:47 AM
Mr. Boutin thought that mark to market was a worthwhile
exercise. He said the Blue Crest Energy Drill Rig and the
Blood Bank of Alaska were loans but were listed as projects
under AIDEA Section 172 Projects.
10:26:07 AM
Senator Hoffman asked about assurances, or collateral, for
the loan for the Blue Crest Energy Drill Rig on the Kenai
Peninsula.
10:26:31 AM
Mr. Boutin replied that the loan was on the books for $22.8
million but needed to get back to the committee on the
collateral given for the loan.
10:26:57 AM
Mr. Boutin agreed to provide that information.
10:27:19 AM
Co-Chair Stedman thanked the presenter. He discussed
housekeeping.
ADJOURNMENT
10:28:24 AM
The meeting was adjourned at 10:28 a.m.