RE: Deerfield development agreement

I agree with your & Kay's comments.
=01;
Section 6 "Free Opiton" is nothing more than a wish the City put on the tab=
le=20
for the first time this past Wednesday.=01; They have no intention of creat=
ing a=20
utility nor do they envision being a power marketer.=01; I agree - omit it =
from=20
the draft.
=01;
The City is envisioning there is a possiblity the facilty will be expanded =
in=20
the future (which is what Coastal has been=01;discussing with them regardin=
g=20
their phased SC/CC approach), and as such, is willing to have future=20
expansion language in the doc (Debbie's 4b).=01;=01;The City's position is =
that=20
there are no guarantees the facility will be given the approvals in the=20
future for expansion (new commission, change of law, etc) and that the=20
language might be of some benefit.=01; Should we elect to remain quiet, the=
y=20
will agree.
=01;
The City is looking for an initial up front payment of $1.5mm this Septembe=
r=20
01, which was Pompano's initial position as well - another wishful thought.=
=01;=20
I agree with the proposed changes to 3 "prior to the end of the calendar ye=
ar=20
in which DBEC received its building permit" the payment will be made.
=01;
Steve

-----Original Message-----=20
From: Jacoby, Ben=20
Sent: Wed 5/30/2001 9:55 PM=20
To: Mann, Kay; Krimsky, Steven=20
Cc:=20
Subject: RE: Deerfield development agreement

Kay / Steve:=20

Attached are my comments. I've tried to address Kay's concerns below, and=
=20
agree with them wholeheartedly. From a commercial perspective, paragraph 6 =
is=20
a non-starter.

Let's discuss. Thanks.=20

Ben=20

<<ENRON-DEERFIELD AGREEMENT 5-30-01 (marked).DOC<<=20

=01;-----Original Message-----=20
From: =01; Mann, Kay=01;=20
Sent:=01;=01; Wednesday, May 30, 2001 6:36 PM=20
To:=01;=01;=01;=01; Krimsky, Steven; Jacoby, Ben=20
Subject:=01;=01;=01;=01;=01;=01;=01; Deerfield development agreement=20

Here are my initial comments:=20

There's no clear triggering event which would expedite the internal approv=
al=20
process.=01; For instance, paragraph 3 is a current obligation (re=20
landscaping).=01; It would be easier to process this agreement if the=20
effectiveness of this agreement commences when we=01; file for a building=
=20
permit.=01; I understand that we would have to pay some of this prior to th=
e=20
time the permit is issued, but again, magic words help.

Paragraph 6 on right of first refusal for power.=01; Looks like a free cal=
l for=20
the next 30 years.=01; Just want to make sure you've bought in on this.=01;=
Other=20
than the obvious valuation impact, it could impact a purchaser's ability to=
=20
obtain project financing.

Kay=20