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 <email@example.com> 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?
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
MICHIGAN STRATEGIC FUND BOARD MEETING
April 7, 2005
Michigan Economic Development Corporation
Lake Superior Room
300 N. Washington Square
Call to Order
I. Adoption of Minutes from the February 17, 2005, Meeting
II. Confidentiality Report
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.
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!
UAW Local 174 Environmental Committee Chair
UAW Region 1A Toxic Waste Squad