STATE OF NEVADA, )

COUNTY OF ELKO. ) ss.JULY 20, 2006

The Board of Elko County Commissioners met on July 20, 2006, at 1:30p.m., in Room 105 of the Elko County Courthouse at 571 Idaho Street, Elko, Nevada.

There were present: CountyCommissionersWarren Russell, Chair

ABSENTJohn Ellison

Mike Nannini

Charlie Myers

Sheri Eklund-Brown

CountyManagerRobert Stokes

Deputy District AttorneyKristin McQueary

Deputy County ClerkMarilyn Tipton

Planning and ZoningRandy Brown

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The proceedings were as follows:

CALL TO ORDER:

Chairman Russell called the meeting to order at 1:33p.m.

PLEDGE OF ALLEGIANCE:

Commissioner Myers led the meeting participants in the Pledge of Allegiance.

COMMENTS BY THE GENERAL PUBLIC:

No public comments were submitted by the general public.

NORTHEASTERN NEVADA REGIONAL RAILPORT:

Chairman Russell turned control of the meeting over to Commissioner Myers who was the Chairman of the Regional Railport Subcommittee.

Elaine Barkdull, Executive Director of ECEDA, stated Gary Hunter would be presenting the preliminary industrial park analysis, Phase II,and a portion of Phase III of the Plan for Business which included marketing, customer research and analysis on infrastructure, utilities and traffic flow. Elaine Barkdull stated the interview section of Phase III was time consuming. They had met with James Giblin, a Senior Associate of Railroad Industries Incorporated, and a couple of companies that were interested in the railport. She stated they had identified/current customers located within their area. Elaine Barkdull stated Railroad Industries Incorporated was still working on Phase III inclusive of the projection of rail customers and the diversity.

Phase II & III – Plan for Business:

Gary Hunter, CEO/President of Railroad Industries Incorporated,gave a presentation regarding the Preliminary Industrial Park Analysis, Phase II for Northeastern Nevada Regional Railport. He stated that Phase III would include the traffic and projections. Gary Hunter submitted a copy of the written presentation and CD to each commissioner.

Gary Hunter emphasized that they had to dedicate infrastructure such as roads, rails, high volume utilities to reduce the per business expense of infrastructure. He stated the industrial park’s infrastructure would attract new businesses and create more jobs in the area. He commented upon the benefit of reducing the environmental and social impact of the industrial uses of land by concentrating them in one specific area.

Gary Hunter reviewed the site requirement as follows: 1) Immediate availability, 2) Necessary utilities in place; 3) Immediate construction approved (any environmental, zoning, etc.); and 4) Basic data on area growth and traffic available.

Gary Hunter stated the developer requirements were: 1) Available and favorable market data, 2) Feasible local permitting and regulations, 3) Safe return for lenders and investors, and 4) Flexibility in industries and developmental direction.

Gary Hunter reviewed the benefits of hiring a developer who could provide rapid development by the experienced party. He stated there would be a minimum amount of overhead for ElkoCounty. He noted the developer would take on the responsibility for marketing and the County would get a fast return on their property. He commented that they could still provide a development plan that would protect ElkoCounty’s concerns and interests.

Gary Hunter reported that ElkoCounty could retain ownership or controlling interest in the property, park and railport through a public trust, a railport/industrial park authority, joint authorities, industrial developers, or public-private partnerships. He stated under public trust the County would retain complete ownership and govern it with an elected Board, supported by a full-time professional staff. He stated it would be self-sustaining because operations would be funded by land sales, property leases, water sales and usage fees. Gary Hunter stated on a port/industrial park authority the County could retain complete or partial ownership. He noted management would be performed by a special cooperation with an elected board and a full-time professional staff. He stated this would be a self-sustaining operation which was funded by land sales, property leases, water sales and usage fees. He stated this board could manage several related facilities for a common goal at speed required for the business. Gary Hunter commented that under a joint authority the county could retain ownership or partial ownership under a joint powers governance board. He noted that members could be chosen to represent the closest stakeholders in the port, park community, and the County as desired. Gary Hunter noted the funding for operations would depend on a joint agreement. He stated under private developers the County could retain all or partial ownership and release management to the developer. He noted the developer could develop long term leases, exclusive purchase back options, clear development plans and tenant agreements. He stated the developer would fund the operations. Gary Hunter commented that under public-private partnerships it would allow for more developers to participate. He stated this option would allow creative funding options and the County could keep a desired level of control. Gary Hunter noted this would allow for coordination on RFPs, bids and management processes. He stated it would also allow coordination of permit and regulations approvals. Gary Hunter stated the public and private partnerships alternative would provide for more funding options.

RECOMMENDATIONS:

Gary Hunter suggested that they develop the basic infrastructure for the park as soon as possible and also selectthe developer. He stated the sales transactionscould include clauses to protect ElkoCounty’s interest in the development of the park. He stated structure and zoning or permitting requirements would make the site ready. He noted that Railroad Industries Incorporated was completing a market study for the target industries for the park. However, he recommended that they develop a master plan for the park including park design,environmental concerns, aesthetics, and direction of development as desired by ElkoCounty. Gary Hunter stated that if ElkoCounty retained some or all control of the facility in the development or transaction; he suggested they create an Industrial Park and Railport Authority. He noted that authority would be empowered to manage the facilities. He suggested that they develop a comprehensive Marketing Plan for the Industrial Park and Railport.

Commissioner Eklund-Brown noted there was a time constraint of 180 days for vacation by the past owner, and they were going through the planning process. She commented that they did have companies which were trying to come in now and inquired what his suggestions were for balancing that situation. Commissioner Eklund-Brown commented that they still had to go through the planning, infrastructure and development phases. Gary Hunter stated that there were certain things to be approved but they need a definite timetable as to when those procedures could be approved to make it available. He felt that anything that could be done which did not require approvals or requiring preparation of marketing was a positive action. Gary Hunter reiterated that they needed to set a timetable. Gary Hunter stated if the timetable was over a year, it could be difficult. Commissioner Eklund-Brown noted they would have to contract for a developer to build the transload facility and she did not think it could be done before winter. Commissioner Eklund-Brown believed there would not be construction of the buildings prior to next spring. Commissioner Nannini noted that Elko had bad winters and they could not do construction during the winter months. He felt they should set realistic goals. Elaine Barkdull noted that one of their options was to sell it to a developer. She stated they were in Phase III interviewing people for the industrial park and those were only for projections. However, the decisions had to be made what they want to do with the railport. Commissioner Nannini noted under the government bureaucracy they have to bid it out and everything was discussed in a public meeting. He noted that most of their projects took two or three years to get it completed. CommissionerEklund Brown believed they could sell land and have it committed but they would have to have a timeline when they would have infrastructure. Commissioner Nannini asked them to realize that in reality they would not be able to sell the land next fall or maybe in a couple of years. He commented that there were issues on the fire and water. He noted the City of Elko wanted to supply the water but he questioned if they had the money to put in lines.

Commissioner Myers stated the committee had discussed the master plan process and Randy Brown was addressing that issue. He felt they need to consider whether they want to use an industrial developer versus using staff. He stated there were limitations with the size of staff in the County. Commissioner Myers stated they need to determine whether they want to sell or lease. He stated a company wanted to buy right now and it would not have an impact on the project overall because of its location in the area. He believed that the company wanted to get into the park but there would be no effect to their Master Plan. Gary Hunter agreed they need to decide if they want to go with an outside developer. Commissioner Myers commented that the Union Pacific was doing the transload facility. He felt the Commission needed to decide whether they want to sell or lease and whether they want to go with a developer or County staff. He noted they need to decide whether then want an internal or external authority. Commissioner Nannini asked for clarification on a private developer. Commissioner Myers stated they had options to sell the project to a developer or contract the project. Kristin McQueary stated that because of the new requirements there was a double appraisal process required pursuant to NRS 244.2795. Commissioner Eklund-Brown questioned having to have two appraisals under 244.2815. Kristin McQueary read NRS 244.2815, 2 (a) Obtain an appraisal of the real property pursuant to NRS 244.2795. Kristin McQueary explained that if they look at selling to one developer they would have the double appraisal process. Kristin McQueary stated that if they decided to parcel it out, the County would have to do the double appraisal process for each parcel. She asked that be considered because if they sold to one developer they would only have to do one (1) double appraisal rather than a double appraisal per each lot. Commissioner Myers stated they would be meeting with one company on Tuesday who wanted to purchase forty acres. He stated that sale would not impact their Master Plan. He believed that they could take some of the money from the land sale to help develop the remainder of the project. Commissioner Nannini felt that the private sector could do the development faster. Commissioner Eklund-Brown noted their responsibility was the transload facility and they could move on that now. She stated they could get a designer and go out to bid. She commented that the Union Pacific was doing the entrance to their property.

Elaine Barkdull noted the designer would decide how to get the transload facility from the Union Pacific portion of the land. She noted the flattest and most feasible portion of the land was to the west upon Union Pacific property. She noted that the overall design would determine what portion of the industrial park was available for purchase. Elaine Barkdull noted one company was very interested and they had to budget for this purchase. She reported they have two private developers who were interested in buying the industrial park. Elaine Barkdull stated that if the County chose to sell the industrial park and put it out to open bid they would see more developers. Commissioner Eklund-Brown noted to put the property out to bid they had needed minimum criteria and deed restrictions placed upon the land. Kristin McQueary stated from her prospective they were looking at two different projects: the transload and the industrial park. She noted there was nota good footprint of the transload so they do not know how much property was available for the industrial park. She stated until they decide what they want to do with the industrial property which they do not know how much land was available. Kristin McQueary stated they still do not know if they want to sell or lease or precisely how they wanted to run the transload. Elaine Barkdull stated they had received a complimentary diagram of the railport portion. However, the boundaries of the property had changed and that portion would change on the west side. Kristin McQueary inquired how the boundaries of the property changed. Commissioner Eklund-Brown replied it was the fifteen acre piece. Elaine Barkdull stated there was a triangular piece south of the track. She stated there were some situations that have occurred which might affect the original design. Elaine Barkdull stated where the little house sat was owned by the Union Pacific Railroad. She stated the problem was designing where the roads would come in. She noted the property on the other side of the right-of-way was owned by Jim Ellison. Commissioner Eklund-Brown felt the committee should sit down with Gary Hunter to develop some timelines. Commissioner Nannini felt, realistically, it would be two years before they were ready to sell. Commissioner Eklund-Brown noted it had taken a year to purchase the property.

Kristin McQueary asked Gary Hunter what organizational structure had worked the best for a transload facility. Gary Hunter stated a transload operator could come in and develop that. He stated there were certain things to do to develop the transload but it had to correspond with the development of the industrial park. He stressed the importance of a timetable. Gary Hunter stated there were operators throughout the country that specialize in that. Kristin McQueary inquired if they came in at this point or after the facility was built. Gary Hunter stated there were some who would come in and do a lot of the work for them. He stated the County may wish to turn it over to a large company who had the finances to build it by themselves.

Commissioner Russell noted they do not have an obligation to keep a timeline. He stated the County was not market driven as a private developer. He felt their decision was what the role for the County would be in the development of this facility. He believed their decision on whether to retain the ownership would start the time process. Commissioner Nannini agreed that was part of the time process.

Commissioner Eklund-Brown suggested the Board read the entire report. She read a statement from the report: “The ideal plan was to turn the entire park over to a single, large developer.” Commissioner Eklund-Brown believed that would be the easiest way, as long as their deed restrictions were in place. She noted the tax base would be raised, and there would be more jobs with more companies coming to the community.

Commissioner Russell asked the Board to review this report and bring back two options with a preliminary time table.

Commissioner Nannini reiterated that if the County did build it then it became a time issue. He felt the private sector could do it faster. Commissioner Eklund-Brown felt the transload facility should be public. She stated it must be open to the general public and not just exclusively to the industrial park. Commissioner Russell inquired if money from the state could be used to develop the transload facility and if they sold it, would that funding have to be refunded. Commissioner Myers replied no, that money was to go toward the project and there were certain categories it could be used in. Cash Minor explained the $500,000 they received last year was based upon the 2 million dollar purchase of the land. He stated there were no strings attached. He stated they would have to commit another 2 million dollars in this fiscal year to apply for another $500,000 grant. He noted it would have to be public dollars.

Commissioner Russell inquired if they could bring back their recommendations within two weeks. Commissioner Myers stated they would have to have a committee meeting.

Gary Hunter stated a transload operator lends themselves out like a common carrier for any and all customers that want to utilize the benefits of rail. He today stated developing these large one stop rail parks was the way to go. He stated the railroads liked their businesses focused and concentrated in transload parks. Gary Hunter stated in two weeks they would know what type of traffic and customers that were interested in coming here. He stated if they see a large group of interested people expressing an interest, then they may want to look at an option to move it along faster. Commissioner Nannini believed they need planning and engineering. Gary Hunter noted he had made suggestions of things that need to be taking place to get the site ready for the companies.