The Navajo Nation Council Naabiki’yati’ Committee is meeting tomorrow, Nov. 7, and the first Legislation on their agenda is LEGISLATION 0213-13, the $220 million Bond/Loan. The official title of LEGISLATION 0213-13 IS “Relating to Resources and Development and Budget and Finance; Declaring its Official Intent to Reimburse Itself with the Proceeds of the General Obligation Bonds And/Or the Draw-Down General Obligation Bonds in One or More Series in the Aggregate Total Amount of up to Two Hundred Twenty Million Dollars $220,000,000) to Refund Certain Outstanding Bank Indebtedness and to Finance Economic Development and Infrastructure Projects in Two Components: A) $100 Million in General Obligation Bonds (In the Form of Long-Term Fixed Rate Bonds to be Sold to Institutional Investors) and B) Up to $120 Million in Draw-Down General Obligation Bonds (In the Form of a Bank Loan(s) that can be Drawn on as Needed to Fund Approved Projects) and Subject to Completion of Independent Credit Review and Approval Process Prior to the Funding of Any Economic Development.”
The Sponsors of LEGISLATION 0213-13 are DELEGATES Katherine Benally, Leonard Pete, Honorable Joshua Lavar Butler, George Apachito, Walter Phelps, Mel R. Begay, Jonathan L. Hale, Charles Damon II, and Speaker Johnny Naize.
LEGISLATION 0213-13 is 118 pages and includes the list of projects that the $220 m. bond/loan will fund. The list can be found on page 60 and is titled Navajo Nation Division of Economic Development “Economic Development 5-Year Plan Proposal 2010-2014” which was approved
in May 2010 by the then Navajo Council’s Economic Development Committee. Delegate Katherine Benally, who now serves as the Council’s Resources and Development Committee chairperson, served on the former Economic Development Committee in May 2010 and so did current Council Delegate Kenneth Maryboy.
Since the $220 m. is a bond/loan, the plan is to reply the $220 m. with revenues generated from the projects that are constructed by the $220 m. According to a Sept. 23, 2010, memo from The Whitman Group LLC, which was created “in January 2007 to provide financial advisory services to Native American Tribes, manufacturing companies and not for profit organizations, “The project must demonstrate that it will create enough profit to repay the nation for its loan. This will be demonstrated from either historical financial performance for existing businesses looking to expand or through independent market feasibility study acceptable to the Enterprise.”
The Whitman Group stongly recommended to the Council’s Budget and Finance Committee Chairperson LoRenzo Bates and Resources and Development Committee Chairperson Katherine Benally that money “not be invested into any economic development project until that project has been thoroughly reviewed and examined by an independent experienced professional team that will apply specific project criteria and credit approval policies. This credit approval process, which will also include ongoing monitoring of each project, will be conducted by a new Economic Development Enterprise that will employ professionals with direct lending and/or economic development experience…and will work closely with the Division of Economic Development to insure a comprehensive and long term strategy is properly implemented.”
The September 2010 memo from the Whitman Group to Delegates Bates and Benally is Exhibit B of LEGISLATION 0213-13.
According to LEGISLATION 0213-13, paragraph J, the Bond Package includes: “up to $220 million, consisting of the amount required to refund the KeyBank Loans and up to S 155 million comprising four project groups: a) 5-Year Plan Year l DED projects $49 million (Exhibits Al); b) 5-Year Plan Year 2 DED projects $53 million (Exhibit A2); c) NTUA utility infrastructure projects – $35 million (Exhibit A3); and, d) Addendum projects $18 million (Exhibit M). All amounts are rounded down to the million figure.”
The following is information provided by the Whiteman group: “TRIBAL FUNDING OPPORTUNITIES, NEW MARKET TAX CREDITS, TAX EXEMPT BONDS” BY THE WHITMAN GROUP”
WEB ADDRESS FOR LEGISLATION 0213-13: https://drive.google.com/file/d/0B7xhIWpNuJXiU1ZaUkMwc01GdTA/edit?usp=sharing
Also on the Naabi Agenda for Nov. 7 is LEGISLATION 0289-13: the Healthy Dine’ Nation Act of 2013 and LEGISLATION 0290-13, which removes Sales Tax from Fresh Fruits, Fresh Vegetables, Water, Nuts, Seeds, and Nut Betters. Both Legislation 0289-13 and 0290-13 are revised versions of the initial Junk Food Sales Tax.
LEGISLATION 0289-13: Relating to Law and Order, Resources and Development, Budget and Finance, Health, Education and Human Services, and Naabik’iyati’; Amending 25 N.N.C. §§605 ET SEQ. Approving the Elimination of the Sales Tax on Fresh Fruits, Fresh Vegetables, Water,
Nuts, Seeds and Nut Butters (HEHS 10/30/13) The SPONSORS are DELEGATES Danny Simpson, Jonathan L. Hale.
WEB ADDRESS FOR LEGISLATION 0289-13:
LEGISLATION 0290-13: Relating to Law and Order, Resources and Development, Budget and Finance, Health, Education and Human Services, and Naabik’iyati’; Amending Title 24 of the Navajo Nation Code by Enacting the Healthy Dine’ Nation Act of 2013 (Went before Health, Education and Human Services Committee on 10/30/13) SPONSORS are DELEGATES Danny Simpson, Jonathan L. Hale.
WEB ADDRESS FOR LEGISLATION 0290-13
The other legislation on the Naabi agenda for Nov. 7 are:
Legislation No. 0315-13: Relating to Budget and Finance and Naabik’iyati’; Accepting the Audit Report of KPMG LLP on the Primary Government Financial Statement of the Navajo Nation for the Year 2012.
Legislation No. 0317-13: Relating to Resources and Development and Naabik’iyati’; Authorizing the Submittal of a Federal Grant Application for $597,729 to the United States Environmental Protection Agency Region IX, with No Navajo Nation Match, Waiving the Indirect Cost Rate, for the period beginning October 1, 2013 and ending September 30, 2014, to Continue the Superfund Consolidated Cooperative Agreement Program; and Accepting the Grant if Awarded on substantially the Same Terms as applied for (RDC 10/29/13)
(Sponsor: Honorable Roscoe Smith)
Legislation No. 0318-13: Relating to Resources and Development and Naabik’iyati’; Authorizing the Submittal of a Federal Gant Application for $254,636 to the United States Environmental Protection Agency Region IX, with No Navajo Nation Match, Waiving the Indirect Cost Rate, for the period beginning October 1, 2013 and ending September 30, 2014, to Continue the Support Agency Cooperative Agreement Project; and Accepting the Grant if Awarded on substantially the Same Terms as applied for (RDC 10/29/13)
(Sponsor: Honorable Roscoe Smith)
Legislation No. 0319-13: Relating to Resources and Development and Naabik’iyati’; Authorizing the Submittal of a Federal Grant Application for $955,874 to the United States Environmental Protection Agency Region IX, with No Navajo Nation Match, Waiving the Indirect Cost Rate, for the period beginning October 1, 2013 and ending September 30, 2014, to Continue the Superfund State and Tribal Response (Brownfields) Program; and Accepting the Grant if Awarded on substantially the Same Terms as applied for (RDC 10/29/13)
(Sponsor: Honorable Roscoe Smith)
Legislation No. 0323-13: Relating to Law and Order and Naabik’iyati’; Approving Agreement between Federal Emergency Management Agency and Navajo Nation for Major Disaster Designated as FEMA-4104-DR
(Sponsors: Honorable Edmund Yazzie, Honorable Alton Joe Shepherd)
Legislation No. 0327-13: Relating to Naabik’iyati’; Approving Agreement for the Period January 01, 2014 to December 31, 2018 Between the U.S. Department of the Interior and the Navajo Nation for Navajo Children and Family Services Pursuant to the Indian Self-Determination and Education Assistance Act; Further Approving Annual Funding Agreement for Fiscal Year 2014 (NABI)
(Sponsor: Honorable Dwight Witherspoon)
Legislation No. 0329-13: Relating to Naabik’iyati’ and Navajo Nation Council; Confirming the Nomination of Ms. Bessie L. Tsosie to the Commission on Navajo Government Development (NABI)
(Sponsor: Honorable Edmund Yazzie)
Legislation No. 0331-13: Relating to Health, Education and Human Services and Naabik’iyati’; Supporting H.R. 3229, A Congressional Bill Entitled “Indian Health Service Advance Appropriations Act of 2013”
(Sponsor: Honorable Jonathan L. Hale)
WEB ADDRESS FOR NAABIKI’YATI’ COMMITTEE, 11-7-13, 10 AM, NAVAJO COUNCIL CHAMBER http://www.navajonationcouncil.org/MeetingSchedules/2013/NOV/07NOV2013_NABI_Agenda_PROPOSED.pdf