LISBON, Ohio – The Columbiana County Port Authority Board of Directors took steps Monday to assist a Negley landfill in acquiring up to $100 million in tax-exempt bonds, if necessary, to improve its operations.

According to Brittany Smith, CCPA assistant director, an attorney for Noble Environmental Inc., owner of the Penn Ohio Landfill, 7555 North St., contacted the CCPA several months ago to inquire about issuing a bond with the port, which has bonding capabilities.

Smith said the company is hoping to make its current operations more efficient.

“There is no expansion [being planned] that I know of. They’re going to hire attorneys, engineers, and talk to contractors to determine what can be done at that facility,” Smith said.

The company is currently in operation, accepting construction and demolition debris only, and is doing its due diligence, Smith said. She added that $100 million in bonds would be the “absolute max.” She expects to hear back on whether or not the bonds will need to be issued within 12 to 18 months. 

Issuing the large amount of bonds to the company would not impede the port authority’s bonding capabilities, Smith said.

The board voted unanimously in favor of a resolution agreeing to issue the bonds for the company and also in favor of a preliminary agreement with Noble Environmental, outlining the costs to be paid to the port authority for its assistance in issuing the bonds and loaning the proceeds of the bonds to the company – including a $5,000 application received from the company and a $235,000 closing fee to the port authority, as well as other fees. 

Russ Balthis of Squire Boggs, the port authority’s bond counsel, attended the meeting and assured the board there will be no cost to the port authority in regard to the agreement. He  emphasized that the port authority is not obligated to issue the bonds.

“When they come to us with a project, we’ll review it. And if we’re OK with it, we’ll issue a bond,” Smith said.

The board also approved an engagement letter with Bradley Payne, its municipal advisor, in regard to the agreement with Noble Environmental, again citing no cost to the port authority for a lengthy list of services it would provide. But it includes at least a $45,000 flat fee for conduit bond services if the port authority moves forward with issuing the bonds.

Smith shared a news release from Noble Environmental in which Nikolas Mermigas, vice president of corporate development, acknowledged approval of the inducement resolution by the port authority board in support of the company’s proposed tax exempt bond financing for solid waste process and recovery projects in Ohio.

“The adoption of the inducement resolution does not constitute a final approval or issuance of the bonds. Rather, it signifies the Port Authority’s intent to assist Noble in pursuing this financing mechanism, subject to further due diligence, regulatory compliance and final bond issuance approval,” Mermigas said in the release.

“This release is not, and shall not constitute, an offer to sell or a solicitation of an offer to buy any security, nor shall there be any offer, solicitation or sale of any security in a state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification der the securities laws of any jurisdiction,” Mermigas said.

Headquartered in Canonsburg, Pa., Noble Environmental is a regional vertically integrated solid waste management company that provides waste collection, transportation and disposal services throughout its platform of solid waste landfills and transfer stations in Pennsylvania, Ohio and Maryland. The company also designs, builds and operates its own renewable natural gas facilities at its gas generating landfill locations.

The company has approximately 400 employees.

Other Business

In other matters Monday, the board awarded a contract to W. E. Downie Co. Inc. of Poland, Ohio, for the Quality Liquid Feeds Molasses Storage project in the Wellsville Intermodal Facility after the first round of bids was rejected after both bids submitted exceeded the engineer’s estimate by more than 10 percent.

Downie’s bid of $826,968 was accepted over the $1,052,227 bid from Dynamic Structures.

The board also approved an agreement to transfer $375,666 in Ohio Department of Transportation Maritime Assistance Grant funding from a project at Pier 48 to the Quality Liquid Feed project since the Pier 48 project could not be completed due to rising costs, according to Smith. Quality Liquid Feeds’ share of the project cost is $451,302.