NAVAJO COUNCIL NAA’BIKI’YATI’ COMMITTEE STILL DEBATING $220 MILLION BOND/LOAN:
KEYBANK MANAGING DIRECTOR GEOFF URBINA asked to go over certain portions of $220 milion Bond/Loan and how KeyBank loan to Navajo Nation used:
$60 MILLION LOAN WAS USED FOR:
? Gaming construction
$3 m drought
$30 m NTUA projects. IRS ruling that NTUA projects don’t violate Commerical Activities which IRS has attacked other tribes on.
Regarding Draw Down Projects, for those to be eligible, projects can be commercial but mush be owned or operated by tribe or tribal enterprise and not individual Navajos.
WHAT will be SECURIty for these Bonds? What is in KeyBank loan shall be secured by full faith and credit and legal assets of Navajo Nation. All assets of Navajo Nation except following: those assets held in trust by fed govt, restricted by federal or tribal prohibitions including Permanent Trut Fund, Reserves balance, restricted fedral/grant moeney, real property of NN, fiduciary assets and anything in writing by Navajo Nation before bond issued.
You can see that it is a long list of assets. It is promise by nation with long list of securities that cannot be accessed.
DELEGATE RUSSELL BEGAYE
Ask that those words be included as amendment so include PTF, Reserves, real property.
DELEGATE WALTER PHELPS
Has Navajo Nation experienced working with TED bonds? Question to Controller Mark Grant.
Nation has received authorization for TED bond but not issued so probably need reauthorization if want to change projects.
I think that this proposal here, we wud want it to be comprehensive, we wud want as eluded earlier by experts that it wud include benefits, incentives, credits and I believe TED progrm wud maximize that as well.
What I’m hearing is two things. One is perhaps that there was sunset clause for TED bonds for projects and that sunset has passed. and the other is that they may also include so technically it’s not it wasn’t quite included.
is’s a little ambivalent that clear that yes wud include with request to maximize benefits and incentives. But perhaps this was explored. Does this benefit nation?
TED bonds we wud need to reapply for allocation. One thing keep in mind is large portion of bond issue doing now is already tax exempt.
DELEGATE LEONARD TSOSIE
This moring we were talkinga bout possibility of futhere defining what “legally available” is so what assets would be reached?
Sure Doug good person and sound mind and for him to just tell us that other states and tribe do this but we need to see it. My worry is one, the Navjo Natin is being signled out and you say otherwise so give me example. If u represent other tribes, give us examples. I’m sure all that info in your laptop.
“The risk for me is too much to expose Navajo Nation to this. It’s in the way we have handled Permanent Trust Fund.”
In president’s office, there is PTF office that is using PTF and not general funds. “Who is doing those things? When pple do without being upfront with us, I’m bother by it.”
I don’t know what investment managers doing to get their pay. I’m not getting performance. I know we’re giving them lot of money.
“I still believe the amendment is not in best interest of Navajo Nation and exposes us to liablities in foreign land, at a place called New York. And if really working for us then change laws for us.”
When Standards and Poors say not rate tribal bonds, it’s a “willy nilly” decision because they don’t trust tribal govts. Heck with them. Do wat grandparents did, take care of family with what have. We can play in market but to me this is a serious decision.
We asked before break for samples on what wud be cost of borrowing $150 m to $250 m. But you don’t respect us cuz you didn’t give us examples. We want to know how much it would be. I understand that interest not set but give us examples of 3 percent to 10 percent interest.
For me, with something like this, we’re loking at cost, ambiguity. Other thing is you’re saying security law requires this. So cite law so we can research. I was hoping you would do work but now loks like we have to do ourselves.
Sugestion to TAble. We are not against financing but want good financing. We are giving up sovereignty and maybe one day, you’ll have shipped to New York to defend our sovereignty.
I’m having to live in Eastern Agency with checkerboardness cuz bunch of lawyers 20 yrs made decision not to file something. I don’t take my position easily. It’s not a laughable mattr. These are funds of Navajo pple and land of Navajo pple.