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Re: E-M:/ 7-Apr WMI seeks $68 million state bond for landfill expansion



The Michigan Information & Research Service Inc. (MIRS) is reporting in today's issue of their Capitol Capsule, that the Michigan Strategic Fund Board (MSFB) staff is expected to recommend changes to the narrow the scope of bond so that projects like the expansion of landfills would not qualify for Industrial Development Revenue Bonds (IDRBs).  The title of the article is "Landfill Longshot For State Bonds."

>>> Brad van Guilder <bradvg@ecocenter.org> 4/6/2005 11:54:44 AM >>>
Waste Management is requesting that the Michigan Strategic Fund issue a 
tax-exempt Industrial Development Revenue Bond (IDRB) in the amount of 
$68 million to fund landfill expansion and operations for numerous 
locations around the state including facilities that take large 
quantities of out-of-state trash.  Waste Management would have to pay 
back the bonds but the state facilitates the financing by lowering the 
cost since the bonds are tax-exempt.  Landfill expansion only produces 
short-term construction jobs and not long lasting stable jobs.

Savings reduce costs to 75-85% of the prime rate.  Michigan's IDRB 
program specifically  states that there is NO LIMIT on the amount for 
IDRB requests for solid waste disposal facilities.  Waste Management 
has already received at least three of these bonds over the last 15 
years totaling more than $100 million.

This policy needs to be changed.  The waste disposal portion of the 
IDRB program should be changed to support recycling so that these bonds 
are available for
a)  Material Recovery Facilities for operations that prepare materials 
as feed stock for industry.
b) Attract new businesses or assist existing businesses to retool as 
necessary to boost recycled material content in their products.
These changes make for REAL economic development for job creation that 
boosts Michigan based businesses and cycles this material base within 
Michigan's economy.  It also helps to stabilize and improve the market 
for recyclables from Michigan municipalities.

What are IDRBs?
http://medc.michigan.org/services/financial/combo.asp?
contentid=acdd73a1-dc3b-4601-b544
-9ae5654cbcd0&queueid=1&contenttypeid=10002&contentname=idrb_industrial_
development_revenue_bonds


Wednesday, April 6, 2005
Waste firm asks state for money
Tax-exempt bonds would pave way to improve, expand Michigan landfills.
By Joel Kurth / The Detroit News
http://www.detnews.com/2005/metro/0504/06/C01-141355.htm


MICHIGAN STRATEGIC FUND BOARD MEETING
April 7, 2005
10:00 a.m.
Michigan Economic Development Corporation
Lake Superior Room
300 N. Washington Square
Lansing, MI
517. 335.4541
AGENDA

Call to Order

I.    Adoption of Minutes from the February 17, 2005, Meeting

II.    Confidentiality Report

Public Comment

III.        Operations

1.    Presentation by Linda Bloch ? Addition of Maddin Hauser Wartell Roth 
& Heller PC to Approved Bond Counsel List

IV.    Policy Discussion

1.    IDRB Priorities

V.    IDRB Inducements

1.    Waste Management, Inc. and/or its Affiliates ? (Texas) - $68,000,000 
? New ? Various Locations


Brad van Guilder, Ph. D.
Community Organizer

Ecology Center
117 North Division Street
Ann Arbor, MI 48104-1580

(734) 663-2400 ext 114
(734) 663-2414 FAX
(313) 205-6386 CELL Not available while driving!

bradvg@ecocenter.org
http://www.ecocenter.org
http://www.stoptrash.org

UAW Local 174 Environmental Committee Chair
UAW Region 1A Toxic Waste Squad