Creation of the Trust Key dates: June 2009 – GM bankruptcy. October 2010 – Settlement Agreement (U.S. Government, 14 States, St. Regis Mohawk Tribe, and “old GM”) March 31, 2011 – Trust Effective. Close to $500M for cleanup: ( $431M in separate “buckets” for all 60 sites with “knowns;” $68M “Cushion” for unexpected overruns and for any contamination found at the other 29 sites). Roughly $220M (in funds and Property) for holding costs, redevelopment, and administrative.
Dual Mission: remediation and redevelopment Requires input of affected communities Mission
Settlement Agreement ¶ 65 In contemplating sales, Trustee shall consider – (i) whether the monetary value of the purchase price is sufficient in light of the projected budget for the sale of that Property, taking into account any surplus from past Properties sold or projected shortfall on the sale of the remaining Properties; – (ii) the potential for the reuse to create jobs in the State, and the affected community; – (iii) other benefits to the State, the Tribe, if applicable, and affected communities (such as increasing tax revenue, reducing blight, and providing a sense of renewal); – (iv) avoiding a material increase in the cost of or interference with the Environmental Action; – (v) the views of the State, the Tribe, if applicable, and affected communities; and – (vi) the reputation and credibility of the prospective purchaser.
Trust Structure Administrative Trustee: Elliott Laws, Managing Member Chief Operating Officer & General Counsel: Michael Hill Redevelopment Manager: Bruce Rasher (Patricia Spitzley as Deputy) Cleanup Managers: – Delaware, Louisiana, Massachusetts, Ohio, Pennsylvania and Virginia: Pam Barnett – Indiana, Illinois, Kansas, Missouri, Wisconsin, and New Jersey: Bob Hare – New York: Brendan Mullen – Michigan: Grant Trigger (Dave Favero as Deputy)
RACER Team Elliott Laws Administrative Trustee Bruce Rasher Redevelopment Manager Patricia Spitzley Deputy Redevelopment Manager Bob Hare Cleanup Manager for IN, IL, KS, MO, WI, NJ Pam Barnett Cleanup Manager for DE, LA, MA, OH, PA, VA Brendan Mullen Cleanup Manager for New York Grant Trigger Cleanup Manager for Michigan Dave Favero Deputy Cleanup Manager for Michigan
Miscellaneous Buyers should be aware that: – Cleanup dollars available and committed (SA Att. A) – Liability protections available (SA ¶ 69). Seeking contractors as well: – Statement of Qualification – to allow “apples-to-apples comparison: – via website. – Looking for companies that will hire local workers. No federal or state procurement rules. Letter of Intent on website. Offering Memoranda, reflecting community input, expected for first 20 sites in coming months.
Specific Input Sought Site-specific development information requested (for website as well for offering memoranda). Coordination with RACER Trust on prospective purchasers. (Some entities that have proposed appear interested primarily – or even solely -- in Machinery & Equipment and in demolition salvage (copper, steel, etc.)).