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<br />'MW Foss & Co. <br /> <br />Mr. James Fornell <br />City of New Brighton <br /> <br />August 16, 1982 <br /> <br />'2 - <br /> <br />Key Business Plan Assumptions <br /> <br />The business plan encompasses the marketing, construction and <br />operation of a waste-to-energy cogeneration district heating <br />system initially geared to satisfy space heating and industrial <br />process heating requirements and provide electricity to NSP with <br />excess steam production. The detailed assumptions and rationale <br />for the business plan are contained in the attached report. <br /> <br />Key assumptions include: <br /> <br />. Construction of a waste-to-energy cogeneration district <br />heating system, including physical plant and distribution <br />pipe lines, is projected to occur over a two year period <br />at an estimated cost of $8,136,000. <br /> <br />. Facility financing is assumed to be secured from the <br />following sources: <br /> <br />I <br /> <br />Partnership Equity <br />Industrial Development Bonds <br /> <br />$ 4,202,000 <br />6,302,000 <br />$10,504,000 <br /> <br />Limited partners have not been identified and the <br />financing community has not been approached to ascertain <br />the additional level of engineering and business planning <br />needed to secure financing. <br /> <br />· The full participation of all potential consumers of steam <br />and electricity is assumed, though no negotiations to <br />assure their participation have taken place. <br /> <br />. Timely delivery of all required municipal solid waste <br />(MSW) is assumed, though no negotiations to assure this <br />have occurred. <br /> <br />Key Results <br /> <br />Specific study results are summarized below. <br /> <br />I <br /> <br />· The facility's revenues can be adequate to meet all cash <br />requirements beginning in 1987 given that the business <br />plan assumptions are realized. <br />