The following documents are contained (or will be added as received) in this application package:

1. Economic Benefits Evaluation 2. Applicant Responses to Completeness and

Feasibility Questions 3. ConnectOregon III Staff Questions to the Applicant (December 1, 2009 through January 29, 2010 4. Eligibility/Feasibility Review 5. Completeness Review 6. Project Application (including maps, drawings,

other supporting materials, and letters of support or protest).

CO III Reviewer Instructions are posted online at: http://www.oregon.gov/ODOT/COMM/CO/reviewerinfo.shtml

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R10167

R10167 ConnectOregon III Review of

Economic Benefit to the State

Project Number and Mode: R10167

Project Description: ORPET Rail Project

Project Reviewer: Denise Whitney

Thank you for your participation in evaluating the economic benefit aspects of ConnectOregon III applications. One of the five required “considerations” of the Oregon Transportation Commission when selecting applications for funding through the Multimodal Transportation Fund (ConnectOregon) asks, “Whether a proposed transportation project results in an economic benefit to this state.” Use the scoring sheet below as a quick guide to the application. In some instances, the scoring sheet will identify the appropriate score based on calculations from information provided in the application. Other questions require a critical review of the applicant’s answer before selecting an evaluation score based on the range of possible evaluations. Calculation and comment areas are provided to show your work and note information critical to your evaluation. Save a completed electronic version of this document for each application you evaluate. Scan the signed evaluation form and return it to Teddie.A.Baker@state.or.us in the TDD Freight Mobility Unit no later than Friday, January 8, 2010.

Section 1 Application Section & Question #

Evaluation Criteria Total Score 0 - 3

D5/B7

D5/C1c

Long-term jobs multiplied by projects useful life = long-term job-years OR Private investment ($) divided by [ConnectOregon III request/1 million] = Private investment per $ million requested from ConnectOregon

0

Point System: 0 – no net positive impacts; 1 – potential net positive impacts; 2 – likely net positive impacts; 3 – significant net positive impacts Calculations/Comments: Applicant claims 100 ORPET jobs and related investment dollars. However, the ORPET facility investment does not appear to be a direct result of this project (as specified in the question). The support letter provided by ORPET partner Dennis Denton says the plant will initially employ 50 people and that infrastructure improvements at the site “will enhance our efficiency”.

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Section 2

Application Section & Question #

Evaluation Criteria

Individual

Score

Final Score (Higher of 2)

0-3 D6/C1c Short-run construction-related jobs divided by

[ConnectOregon III request/1 million] = construction related jobs per $ million requested from ConnectOregon

1

Point System: 1 – less than 18 jobs per $million requested; 2 – 18-28 jobs per $million requested; 3 – greater than 28 jobs per million requested

D7 Project area unemployment rate compared to state unemployment rate (10.3%)

2

Point System: 0 – located in area with unemployment rate more than 2 percentage points below state average; 1 – located in area with unemployment rate 0-2 percentage points below state average; 2 – located in area with unemployment rate 0-2 percentage points above state average; 3 – located in area with unemployment rate more than 2 percentage points above state average

2

Calculations/Comments: 12 short-run construction-related jobs divided by [2.278716] = 5 construction related jobs per $ million requested from ConnectOregon from application. Not sure why they didn't use the multiplier for the whole project cost, but in either case pints would be the same – 1 point County/jurisdiction identified is Columbia County, from table 12.0%, 0-2 percentage points above state average – 2 points.

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3

Section 3

Application Section & Question #

Evaluation Criteria

Individual

Score

Final Score (Higher of 2)

0-4

D8 Does this project improve the efficiency or reliability of Oregon’s transportation system? [note in comments section which box(es) were checked and any other relevant details]

3

Point System: 0 – no positive impacts; 1– unlikely to make positive impacts; 2 – potential positive impacts; 3 – likely positive impacts; 4 – significant positive impacts

D9 Does the project improve safety? [briefly note in comments section the documentation or explanation required for a “yes” answer that was provided]

4

Point System: 0 – no positive impacts; 1 – unlikely to make positive impacts; 2 – potential positive impacts; 3 – likely positive impacts; 4 – significant positive impacts

4

Comments: D8 boxes checked include: increases system capacity; relieves bottleneck or congestion point; completes one or more gaps in Oregon's transportation system; removes an existing barrier; reduces traffic or use conflicts; provides another measurable system improvement. Project mainly rebuilds existing track but also adds a new spur. D9 “The existing tracks are in very poor shape” and show evidence of previous derailments and others could occur if the track is not repaired or replaced. A letter was provided from Wiser Rail engineering.

Review of Economic Benefit to the State Final Point Calculation

Section 1 (no more than 3) 0 pointsSection 2 (no more than 3) 2 pointsSection 3 (no more than 4) 4 pointsTotal (no more than 10) 6 points

Reviewer Name: Denise Whitney Reviewer Agency: ODOT Date of Review: 1/7/10

HOLMES Kathy C

From: Paula Miranda [miranda@portsh.org]

Sent: Tuesday, December 22, 2009 11:35 AM

To: HOLMES Kathy C

Subject: FW: ConnectOregon III Grant Application - Response Needed

Attachments: ORPET Rail Project Application.12-21-09.pdf; OBRC Support Letter.pdf; McCormick Letter.pdf

Page 1 of 3

1/21/2010

Kathy,   Attached is the corrected application, per your notification.  Also attached are support letters from Oregon Beverage Recycling Cooperative and McCormick  Piling & Lumber.  Please notice although a scanned copy of McCormick’s letter was not sent with the others, a hard copy was forwarded to the State with the rest of the packet.     A letter from Quantum Leap LLP has been sent to us, but not yet received.  I will forward you a copy as soon as we get it.  Thanks,   Paula Miranda Business Development Manager Port of St. Helens Phone: (503) 397‐2888   From: Gerry Meyer Sent: Monday, December 21, 2009 1:49 PM To: Paula Miranda (miranda@portsh.org) Subject: FW: ConnectOregon III Grant Application - Response Needed     From: Gerry Meyer Sent: Monday, December 21, 2009 1:49 PM To: 'HOLMES Kathy C' Subject: RE: ConnectOregon III Grant Application - Response Needed Kathy, We will send you what we have tomorrow.  I think Paula was waiting for everything to come in before she sent you the info.  Thank you for your patience. Gerry   From: HOLMES Kathy C [mailto:Kathy.C.HOLMES@odot.state.or.us] Sent: Friday, December 18, 2009 4:12 PM To: Gerry Meyer Subject: RE: ConnectOregon III Grant Application - Response Needed Gerry: I just wanted to check in and see how this is coming. I will be on vacation after the 23rd and was hoping to have this portion of the review done by then.

R10167 Revised 12/22/09

You can send me what you have and send the letters later.

Thank you, Kathy C. Holmes (503) 986-4164 (503) 986-3183 (fax)

From: Gerry Meyer [mailto:meyer@portsh.org] Sent: Thursday, December 10, 2009 11:31 AM To: HOLMES Kathy C Cc: miranda@portsh.org; heeftle@portsh.org Subject: RE: ConnectOregon III Grant Application - Response Needed

Kathy, Per our phone conversation today.  The Port will get you the required information as soon as possible.  The letters that are requested may take longer than three days to receive from Quantum Leap LLC and Oregon Beverage Recycling Cooperative, but I assure you that we will do the best we can to get you the information requested.   Thanks you, Gerry Meyer Executive Director Port of St. Helens    From: HOLMES Kathy C [mailto:Kathy.C.HOLMES@odot.state.or.us] Sent: Thursday, December 10, 2009 11:14 AM To: Gerry Meyer Subject: ConnectOregon III Grant Application - Response Needed Dear Mr. Meyer, I have reviewed your ConnectOregon III application for completeness, and found a few items needing your attention:

1. Part C, Item 6 (page 7): Milestone 3 has $10,000 budgeted for Permits. The application shows this was paid in November 2009, but is not part of the match. Monies spent prior to having a signed contract cannot be reimbursed. Is this actually supposed to go towards the match?

2. Part C, Item 6 (page 8): Milestone 5, you have checked the box on this one indicating that "This milestone is complete or does not apply." But, Item 4 shows that this milestone will not be met until November 2010 and you also have no budget amounts listed for the construction award. Please review the Milestone Budget section and make the necessary changes.

3. Part D, Item 4 (page 11): Please check all boxes that apply.

4. Part D, Item 5 (page 12): There are no letters from Quantum Leap LLC or Oregon Beverage Recycling Cooperative attached.

5. Supporting Materials, Part C, Item 3 and 5 (page 17): Both items list a letter from McCormick Piling & Lumber Co.

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1/21/2010

R10167 Revised 12/22/09

Please provide the requested information and corrections within the next three days in order for the application to remain in consideration for funding. Thank you, Kathy C. Holmes Executive Support Rail Division, Oregon Department of Transportation 555 13th Street NE Suite 3 Salem OR 97301-4179 (503) 986-4164 (503) 986-3183 (fax)

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1/21/2010

R10167 Revised 12/22/09

HOLMES Kathy C

From: Paula Miranda [miranda@portsh.org]

Sent: Thursday, January 14, 2010 8:41 AM

To: HOLMES Kathy C

Cc: Gerry Meyer

Subject: RE: R10167 Port of St Helen ConnectOregon III Grant Application - Response Needed

Attachments: Page 12.Revised.pdf

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1/21/2010

Kathy,   Per your request, attached is a revised page 12.  Please let me know if you need additional information.  Thank you.   Paula Miranda Business Development Manager Port of St. Helens Phone: (503) 397‐2888   From: HOLMES Kathy C [mailto:Kathy.C.HOLMES@odot.state.or.us] Sent: Thursday, January 14, 2010 8:27 AM To: Paula Miranda Subject: FW: R10167 Port of St Helen ConnectOregon III Grant Application - Response Needed

Kathy C. Holmes (503) 986-4164 (503) 986-3183 (fax)

From: HOLMES Kathy C Sent: Friday, January 08, 2010 4:28 PM To: 'meyer@portsh.org' Subject: R10167 Port of St Helen ConnectOregon III Grant Application - Response Needed

Dear Mr. Meyer, The feasibility review has been completed on your ConnectOregon III application and we have one more question/issue. Part D, Item 5 on page 12, shows this project will create 100 jobs. However, the businesses you have listed only show 50 jobs in their support letters with the possibility of up to 100. Only one of the letters, Denton Plastics, actually states that it will create jobs and they say it will create 50 jobs. You will need to revise your application to reflect only the 50 jobs or provide letters of support that show the 100 jobs. Please make the corrections and send them to me by noon on Wednesday, January 13th in order for the application to remain in consideration for funding. An electronic copy of the revised pages is all I need. Please feel free to contact me if you have any questions. Thank you,

R10167 Revised 01/14/10

Kathy C. Holmes Executive Support Rail Division, Oregon Department of Transportation 555 13th Street NE Suite 3 Salem OR 97301-4179 (503) 986-4164 (503) 986-3183 (fax)

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1/21/2010

R10167 Revised 01/14/10

December 17th, 2009 ODOT Freight Mobility Unit 555 13th Street NE, Suite 2 Salem, OR 97301-3871 Attn: Connect Oregon Program Dear Connect Oregon III Grant Committee The ORPET recycling project, a public-private partnership that will build a 90,000-square-foot facility in St. Helens, Oregon, will bring new green jobs to an economically depressed area of our state. I am writing to pledge my support to this important project. The new facility will be located at the Multnomah Industrial Park, a property owned by the Port of St. Helens. Currently, rail lines within this site are decaying and insufficient to support the work of the ORPET plant. Improving and enhancing the rail lines will allow for the smooth flow of commerce to and from the ORPET facility as well as to the McCormick Piling & Lumber Company, who already operates into this site. The ORPET project is an outstanding project for many reasons. It will bring up to 100 green jobs to Columbia County, an area suffering from 11.4 % unemployment. Additionally, ORPET's clean, responsible approach to recycling will benefit our region, our state, and beyond. At capacity, the plant will be able to process 20 to 30 million pounds of PET plastics per year. Products made from the recycled materials will then be marketed to a variety of Northwest businesses, providing a local supply chain and reducing the carbon footprint of shipping recycled plastics overseas. Grant funding from Connect Oregon III will help provide the necessary infrastructure for this important project. I thank you for your consideration. Sincerely, Tom Leaptrott ORPET Organizing Group

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