http://www.arktimes.com/ArkansasBlog/archives/2013/01/30/arkansas-teachers-to-take-20-percent-state-in-new-steel-mill Comments On: Arkansas teachers to take 20 percent stake in new steel mill by Max Brantley en-us Copyright 2013 Arkansas Times. All rights reserved. This RSS file is offered to individuals, Arkansas Times readers, and non-commercial organizations only. Any commercial websites wishing to use this RSS file, please contact Arkansas Times. robert@arktimes.com (Arkansas Times Webmaster) Sun, 19 May 2013 00:00:01 -0500 Sun, 19 May 2013 12:30:00 -0500 Foundation http://blogs.law.harvard.edu/tech/rss Posted by MEnLR]]> Wed, 30 Jan 2013 21:47:19 -0600 Arkansas Times
In other words, Arkansas should designate Clean Line Energy as a "utility", and give them eminent domain powers to take wide swathes of private property, even though they have have no customers in Arkansas so far. The number of jobs and source materials to compensate for the intrusion is pitiful. They haven't committed to buying their windmill blades from Arkansas. For some reason, some county judges are endorsing this plan, although it will be detrimental to local property owners in their county.

So Maddow has become a common utility stooge.
Posted by radical centrist]]> Wed, 30 Jan 2013 20:12:57 -0600 Arkansas Times Posted by santhony]]> Wed, 30 Jan 2013 19:02:34 -0600 Arkansas Times
Over the course of the past twenty five years, the management team has built or expanded fifteen mini mills (six of them are similar to Big River Steel) and all have been profitable. Let me repeat, ALL have been profitable. A 20% equity position that is "pari passu" with world class industrial investors. A $60 million dollar investment gives ATRS a 20% stake in a $425 million dollar investment after the Amendment 82 incentives are added. This means that ATRS will pay $60 million dollars for an $85 million dollar position. That is essentially buying the investment at a 30% discount. ATRS has no investment manager here, like in most investments, to pay either fees or carried interest.

Now let me say a few things about this mill:

The mill will make high end products for which demand is increasing and supply is still scarce, targeting the niche markets:

1. energy (oil and gas drilling and transmission)

2. power (electricity generation, transmission and consumption)

3. automotive (light-weight high-strength steels)


Big River Steel will be the only mini mill in the US capable of producing certain grades of steel while also being the producer of the widest and thickest steel slabs.It will be able to produce a full range of motor lamination steel and in planned phase two expansion will produce both grain and non-grain oriented electrical steel. The mill will have the capability of making Advanced High Strength Steel (AHSS). This capability becomes essential in the steel industry as vehicle manufactures have become increasingly interested in improving the fuel efficiency and environmental friendliness of their vehicles. AHSS steel being, as the name suggests, very strong and lightweight, will likely become a much larger percentage of future vehicles.

The Mississippi County site is almost perfect for material and supplies at a low delivery cost and for deliver of the finished products. The site also has the needed electrical and gas capacity at the site without the massive cost to delivery these needed for many otherwise good locations such as building transmission lines to the plant. I could go with the benefits but will stop here.
Posted by ATRS]]> Wed, 30 Jan 2013 18:44:55 -0600 Arkansas Times
And nobody hurts more than a jilted bride. Unless it might be a jilted groom.

In the case of the proposed Big River plant at Osceola, it was somewhat comforting to see these lines in this morning’s ArkD-G:

“The state will not sell the bonds until private equity from the investors in the mill is first deposited into an escrow account, said Grant Tennille, executive director for the Arkansas Economic Development Commission. ‘We won’t spend a dollar of Arkansas taxpayer money until they’ve put $250 million in the ground,’ Tennille said.”

With regard to George Hopkins and the 40% return from Big River, I’d just have to say, WOW! And that I’d like to get in on that act. Maybe Hopkins knows of what he speaks. Maybe not. For sure, he’s studied and pondered it; the rest of us haven’t.

Whatever, the ATRS’s value increased by $421 million to $11.774 billion in the quarter ended Sept. 30, last I read. For the year that ended Sept. 30, the system’s investment return was 16%. Not bad. Not bad, atall.

Still, if memory serves, Hopkins plans to ask the Legislature to increase to 15% (up from 14%) the rate ATRS charges school districts and other system employers. That would yield about $28 million a year. Those additional dollars would help keep teachers from having to increase their own contribution as well as avoid cuts in retirement benefits.

Or at least, that’s th’ spin.
Posted by Durango]]> Wed, 30 Jan 2013 16:46:45 -0600 Arkansas Times Posted by PVNasby]]> Wed, 30 Jan 2013 15:55:49 -0600 Arkansas Times -a 4 percent income tax credit on new payroll for five years;
-$10 million for job training;
-extended income tax credit (14 years instead of three) for recycling equipment,
-sales tax exemption on utilities.

Are we leaving out free weekly massages for management? I mean, c'mon boys, those fellows have stressful jobs.
Posted by eLwood]]> Wed, 30 Jan 2013 15:49:33 -0600 Arkansas Times Posted by couldn't be better]]> Wed, 30 Jan 2013 15:00:05 -0600 Arkansas Times
Investor talks smack.
Posted by Mean Gene]]> Wed, 30 Jan 2013 14:50:46 -0600 Arkansas Times Posted by Eureka Springs]]> Wed, 30 Jan 2013 14:37:49 -0600 Arkansas Times
How about gold or silver or penny stocks, George? The teachers retirement system will make millions!
Posted by Sound Policy]]> Wed, 30 Jan 2013 14:18:20 -0600 Arkansas Times >More to come on this. George Hopkins, director of the System, tells me in a brief phone call that the system expects a 40 percent return on its investment after a 3.5-year startup period.

Did you think to ask Mr Hopkins about any other investment by the ATRS which has produced a 40% ROI in the past 20 years? ROI is measured annually.

When something sounds too good to be true it usually is.
Posted by eLwood]]> Wed, 30 Jan 2013 14:10:29 -0600 Arkansas Times