Port Authority Meets; RBE Negotiations Continue

Re: Negotiations continue with RBE Arkansas

HELENA-WEST HELENA-In a relatively short regular meeting of the Phillips County Port Authority Board of Directors, the Board of Directors heard a progress report from Executive Director Martin Chaffin on the RBE Arkansas project.

Chaffin told the Board that RBE Arkansas continues negotiations with a group of potential hedge fund investors to finance its proposed $1.8 billion facility at the Helena Harbor. He said, “I have talked to Rod Miller (President of RBE Arkansas), and he is continuing to meet with the hedge funds to do everything he can to expedite their due diligence process so that this project can begin. We are negotiating an amount for him to pay to receive a 120-day extension on his land option. I continue to be optimistic. While we haven’t moved any dirt, things still look very good for this project.”

Chaffin also reported that two other firms have made early visits to the facility and are considering locating plants at the harbor. He said, “We have a firm looking to produce alternative fuels that has made a couple of visits. On the last trip, they had some engineers. We have also had contact from a firm that wants to manufacture wood pellets that can be used to produce alternative fuel. I have put the two in contact with each other. Hopefully, these preliminary discussions will turn into something concrete and positive soon.”

Chaffin also informed the board that he is negotiating with a company that is moving large pipes for the new natural gas pipelines being built about using the newly completed bridge crane to move the large volume of pipe. He hopes to have a proposed deal with that firm soon. The firm would need to use the crane six days per week for a period of four to eight weeks. Chaffin also suggested that the Port Authority not hire a company to manage the crane and terminal until there is more activity with the crane.

Port Authority Member Jim Frazier reported that the Corps of Engineers had started its annual dredging later than usual this year, but the Corps should be able to dredge the Helena Harbor within the next month.

Re:  Short Meeting Results in RBE Extension

HELENA-WEST HELENA- In a relatively short meeting, the Phillips County Port Authority met in regular session on Monday and gave Executive Director Martin Chaffin the authority to negotiate an extension of RBE Arkansas’s land option as the firm continues to work with hedge fund investors on its financing plan.

Chaffin told the Board that an extension was appropriate.  He said, “I still feel good about this deal.  I am on the phone with company representatives and people from the hedge funds almost every day.  They think the project looks good, but they have procedures to follow in terms of their due diligence for a project of this size.”

RBE Arkansas has plans to build a $1.8 billion facility at the Helena Harbor that would produce food grade meal and oil, alternative fuels, electrical power, and fish pellets for Asian fish farms from the fuel byproducts.  Chaffin continued, “This is our best prospect, and I think it is worth another extension provided they make an additional payment of earnest money.”  The board gave Chaffin permission to negotiate the amount of the payment with company representatives.  If an agreement is reached, then the board has authorized Chaffin to execute a 120-day extension.”  All of the board members present approved the arrangement, and Chaffin assured them that he and RBE representatives would be able to reach an agreement.

Chaffin also reported that there are several other prospects examining the Helena Harbor.  One recently made a second site visit.  E-Fuels Inc., also has a land option to build an alternative fuels facility as well.

In other business, the Port Authority Board heard financial reports from Treasurer Henry Richmond and approved a request from Arkansas Blues and Heritage Festival Fundraiser Linda Broome to provide support for the annual October event in Helena-West Helena.  The board agreed to contribute $2000.

Chaffin said the Board would meet again on September 17.  He promised to have an RBE status report at that meeting.  A special meeting is possible to execute the land extension with the firm.

Finally, the Port’s extension of the bridge crane is basically completed.  This piece of infrastructure has greatly enhanced response from the Port’s prospects.  Also, Chaffin reported to the board that the new and improved web site has resulted in several potential prospects calling him after learning about the facility from the web.