When Ada Commishes Sharon Ullman and Rick Yzaguirre approved a last minute extension to the Dynamis “franchise agreement” at the landfill, they added “significant value” to the deal according to a GUARDIAN financial consultant. It appears the lease has jumped from 5 years to 30 years.
Additionally, the contract now allows Dynamis to bring in waste from other sources “with a higher BTU content.” That can include up to 6 tons of tires–something that has been rumored by opponents of the facility for the past few months.
Word on the street has it that Dynamis is unable to get financing for the so-called “waste to energy” project the Eagle firm has proposed to build. The firm has refused to provide any proof of financing, claiming it is privately owned. Ada Commishes paid Dynamis $2 million in public funds for design plans on a private commercial facility the county will never own, control, lease, or operate. Payment to Dynamis has been described by Dave Case, the Republican nominee who unseated Ullman in the primary, as “a loan any way you look at it.”
Until this morning Dynamis had little more than an idea to sell to potential investors and lenders. Now, they can claim they have a 30 year commitment from a government agency. Even if Dynamis never operates the proposed facility, it is possible they will be able to sell their franchise to another party, depending on how the contract is worded.
Our banker explained it as the difference between applying for a construction loan on an apartment building versus a loan on a building with 100% occupancy and 10 year leases.
We see this as a preemptive political maneuver to rush the deal through prior the pending appointment of a third commissioner to fill the seat vacated by Vern Bisterfeldt. Also, all the remaining candidates–both Dems and Repubs–have gone on record as opposing the Dynamis deal in its present form.
For what its worth, the GUARDIAN predicts Dave Case will be appointed as an Ada Commish by the end of the week. Even if he gets outvoted by Ullman and Yzaguirre, he will have the inside info hopefully he will make public that which has been under the radar of late.
See the STATESMAN version of events and click on the “RELATED CONTENT” box to get the entire contract.
To insure more advertising-free Boise Guardian news, please consider financial support.