Biofuels of Helena-West Helena, Arkansas - April 2008

Re:  Chaffin Reports on Numerous Prospects Showing Interest in Harbor

HELENA-WEST HELENA- At the regular monthly meeting of the Phillips County Port Authority Board of Directors, Executive Director Martin Chaffin gave a lengthy report detailing progress with RBE Arkansas and interest from numerous other prospects.

Chaffin began his report with an update of the progress being made by RBE Arkansas in its efforts to finalize its financial package for its proposed $1.8 billion facility at the Helena Harbor.  Chaffin held a series of meetings with Rod Miller, the head of RBE Arkansas, members of his financial team, engineers, state economic development officials, and others who would like to have projects that would work in conjunction with RBE’s proposal.

Chaffin said, “Over the past fourteen days, I have been meeting steadily with Rod and his associates.  Right now I can report that the interim financing should be in place in 3-6 weeks, which would allow RBE Arkansas to finalize the land purchase, begin the permitting process, and start the construction.  Permanent financing should be in place within 2-4 months.”

He continued, “Everyone involved is being very positive.  Everything continues to look good and I remain optimistic.  We continue to get closer to finishing this deal every day.”

Chaffin also reported that a chemist from Auburn University with a technology to turn algae into alternative fuels also met with him and Miller.  The chemist would like to bring his technology to the project in the second phase of the construction.  If that could be managed, the cost of the alternative fuel produced at the site could plummet making it very affordable on the energy market.

Chaffin also reported interest from firms ranging from a German company with an undisclosed type of manufacturing referred to Chaffin by the state which plans to visit in May to a Dutch windmill producer, to an automotive assembly planet.  All of these are in very early stages of the process, but Chaffin said that a couple of the projects have real potential to have a significant economic impact if they can obtain financing.

Chaffin also reported that the Port Authority continues to benefit from the unloading of pipe being used to build the state’s new natural gas pipeline.  He said, “We are receiving all of the traffic that was supposed to go up the Arkansas River to Little Rock and Conway because of the flooding.  I think we have had 26 more barges of pipe unload at our site than was originally anticipated.”  Port Member Jim Frazier added, “That’s a significant asset that we have at this port.  We are open 365 days and are able to handle the excessive water.  Ports on the Arkansas River have been forced to close.”

The Board concluded its business with a financial report from Treasurer Henry Richmond and a promise from Board Member Todd Stewart to have a report from his committee that will include a draft request for qualifications asking consulting firms to submit proposals for marketing the harbor.

Biofuels of Helena-West Helena, Arkansas - March 2008

Re:  Port Authority Gets Industrial Recruitment Update

HELENA-WEST HELENA-The Phillips County Port Authority held its regular meeting Monday night and was updated on the industrial prospects by Executive Director Martin Chaffin.

The top prospect for the harbor remains RBE Arkansas, LLC.  RBE’s Rod Miller continues to work on the financing package for his $1.8 billion project proposed for the Helena Harbor.  Chaffin said, “We continue to be optimistic and progress continues to be made.  Rod has been slowed by some unrelated issues and I expect that we will soon witness some movement on the financing.  This remains an excellent project and I have personally been involved with some meetings with those he is working with on financing.  I remain confident that we will be able to see this project, which has the potential to reshape our entire economy, come to fruition.”

Chaffin also reported to the board that there are seven active prospects currently at various stages of considering projects for the port.  Two of those projects, which are both in the very early stages, are referrals from state economic development officials.  Chaffin said, “We have provided them with all of the information that was requested through the state.  I expect one to make a visit real soon.  Both would represent a significant investment.  One is a facility that would be engaged in the fabrication of metal.  Another would be an automobile assembly plant.  Funding will be the key to the success of both projects.”

Chaffin also reported that he has recently met with Allen Hammonds about the Port’s marketing strategy.  As part of those discussions, Chaffin also reported that he met with Joe Black, the Vice-President of Southern Financial Partners, to discuss ways that the Port could collaborate with SFP’s efforts in marketing the area.  He said, “There are some real possibilities to work together with them and the Chamber of Commerce.  Hopefully, we can get together and make that happen as well.”

Port Authority Attorney David Solomon also met with the Board to provide his opinion concerning what kinds of organizations can receive Port funds in the wake of a discussion about providing funds to the Boys and Girls Club of Phillips County.  Solomon informed the group that money given to groups like the Chamber of Commerce fall within the statutory provisions allowing the Port to have expenses to promote itself and economic development.  That statutory provision would not allow for donations to organizations involved in activities not related to the Port’s function, such as the Boys and Girls Club of Phillips County.

Board Chairman William Quiney also appointed a committee at the request of Board Member Todd Stewart to investigate the possible hiring of a consultant to evaluate the Port’s efforts and make recommendations for improved.  Stewart said he had been investigating some of these types of firms and was really impressed.  Joining Stewart on the committee are Edward Carter and Gordon Cunningham.

The next scheduled meeting of the Port Authority will be held April 28 at 6:30.

Biofuels of Helena-West Helena, Arkansas - February 2008

For Immediate Release

For More Information contact Martin Chaffin @ (870) 338-1418

Re:  Port Authority Holds Monthly Meeting; Chaffin Delivers Industrial Report

HELENA-WEST HELENA- The Phillips County Port Authority Board of Directors held its regular monthly meeting Monday night and heard an industrial development report from Executive Director Martin Chaffin and a financial report from Treasurer Henry Richmond.

Chaffin updated the Board on the progress being made by RBE Arkansas, which has been working for several months to obtain financing for its proposed $1.6 billion facility at the Helena Harbor.  Chaffin said, “We are continuing to move forward.  We are making steady progress.  Rod Miller was here with some Canadian consultants examining the site three times during the past month.  These individuals have some technology for making alternative fuels out of rice and wheat straw.”

Chaffin continued, “One of the foreign banks has a few more things to complete before the financing package can be finalizes.  Unfortunately, in this era where national security is so important, foreign funds are highly scrutinized, which makes deals such as these move extremely slow.  However, I remain highly optimistic.”

The Board also discussed the possibility of beginning to study the expansion of the Port’s marketing, which could include the expansion of the staff.  However, no decisions were made on those ideas at the meeting.  Chaffin did report that he had been working with some other firms interested in a wide array of possible projects.

Richmond delivered the financial report, which showed the Port Authority to be in good financial health.  The Board also is awaiting an Attorney General’s opinion on whether or not it can provide funding to business development organizations like Main Street Helena and community development and quality of life enhancement activities such as those provided by the Boys and Girls club of Phillips County.  Chairman William Quiney hoped the AG opinion would be available by the next meeting and also pledged to have Attorney David Solomon on hand to offer his opinion as well.

Biofuels of Helena-West Helena, Arkansas - October 2007

HELENA-WEST HELENA-A short meeting resulted in big decisions at the monthly meeting of the Phillips County Port Authority Monday night with the board unanimously accepting the recommendation of Executive Director Martin Chaffin to grant a one-year extension of RBE Arkansas’s land option if the firm makes a $300,000 nonrefundable payment.

RBE Arkansas, which plans to construct a $1.8 billion facility at the Helena Harbor, has been working on its financing package for several months and has been making steady progress.  The firm has already made one nonrefundable payment of $100,000.  Chaffin said, “I still feel good about this project.  I have been meeting with the hedge fund investors and all of those representatives are saying good things about this project.  They are just working on their due diligence process.”

Chaffin continued, “We have a really good project proposed here.  Because of the diversity of operations ranging from food-grade products to fish pellets to biofuel, this project continues to be viewed optimistically by investors at a time when firms exclusively dealing in alternative fuels are not able to gain interest from investors because of rising costs.  As I have said before, this project has the potential to permanently alter the economy of the region.  I remain optimistic that we are going to land this facility.”

Board members all noted that the interest shown by this firm has been steady and the financial commitment being made suggests that this firm is serious about its plans.  Chaffin has also been working with state officials to make sure that when financing is approved, RBE is able to expedite its permitting and construction process.

After the discussion, the Board unanimously approved the extension as long as the payment is made.  Chaffin told the Board that he expects the payment to be made by wire transfer and that he would be continuing his discussion with RBE officials and their potential investors Tuesday morning.

The Board also learned that the dredging of the harbor is schedule for November 5 and received a financial report from Treasurer Henry Richmond that showed the Port to be in sound financial health.