Laserfiche WebLink
STOEL RIVES L~P <br />A T T O R N E Y S <br />STqNDARDINSURANCECENTER <br />900 SW FIFTH AVE[VUE, SUITE 2300 <br />PORTLAND, OREGON 99204-1268 <br />Phone(503)224-3380 Fax(503)220-2480' <br />TDD (5031 2 2 1-1 045 <br />Intemet: wwwstoel.com <br />Februaty 16, 1998 <br />Michael J. Hansen <br />Marion County Legal Counsel <br />530 Center Street NE, Suite 312 <br />Salem, Oregon 97301 <br />~: Courthouse Square Project <br />, Environmental Cleanup - Bond Financing Requirements <br />Dear Mike: <br />RECEIVED <br />~'EB 19 1~9~ <br />`"~RION COUNTY CORRECTIONS <br />WORK CENTER <br />I am writing in response to your letter of February 13, 1998 in which you requested our <br />input as to the impact on the proposed revenue bond financing of the Courthouse Square project <br />of the status of the environmental remediation work on the site. <br />As you know, portions of the site contain petroleum contaminated soil and groundwater <br />that was caused by leaking underground storage tanks previously maintained by a former owner. <br />The County's environmental consultants, Century West Engineering ("Century West"), prepared <br />a work plan that has been reviewed by the Oregon Department of Environmental Quality <br />("DEQ"). According to a letter from DEQ dated October 15, 1997, Century West will prepare <br />a ~orrective Action Plan ("CAP") for the site and submit it to DEQ for review and approval. <br />According to Billy Wasson, DEQ has indicated that they will not be in a position to review the <br />CAP until the County has made a final determination as to how the Courthouse Square site will <br />be developed, since the use to be made of the site may affect the nature of the remediation <br />required. <br />As far as the Courthouse Square bond financing is concerned, there is no "bright line" <br />that delineates what is and is not acceptable vis-a-vis the status of the environmental remediation <br />plan for the bond financing to proceed. The degree of uncertainty over the environmental <br />remediation plan is merely one of many risk factors that potential investors in the bonds must <br />assess in order to make an investment decision. <br />~ Broadly speaking, uncertainty on any material point is a risk element that the bond <br />markets will attempt to price - the greater the uncertainry, t he higher the perceived/actual risk, <br />SEATTLE POR7LAND VANCOWER, WA <br />BOISE SALT LAKE CITY WASHINGTON, D.C. <br />