From: John Utter

Sent: Mon May 10 19:28:35 2021

To: Mac Corthell

Subject: RE: A few follow-up questions

Importance: Normal

Attachments: Dansons-Only_55d8b104-dde6-4adb-a57f-23015e0080f9.jpg;

Let me know if anything further is required.

From: Mac Corthell <mcorthell@cityofmolalla.com>

Sent: Wednesday, May 5, 2021 3:42 PM

To: John Utter <john.utter@dansons.com>

Subject: A few follow-up questions

Hi John,

I’m working through the specific proposal for this grant, preliminary proposals all passed muster, so we’re getting closer to a decision. With that said, there’s a bit more information I’m hoping you can help me with. If any of these questions don’t make sense within your operation, please supply something within the spirit of the question (assuming you have some stats relevant to the question).

1. 1. How many bags of pellets do you project the facility to produce (might be daily, weekly, monthly, quarterly, or yearly, I can extrapolate from there)?

70,000 to 100,000 tons annually. The bag sizing will vary.

2. 2. Do you have a measurement projection for incoming and outgoing truck traffic (e.g. if you produce 10,000 bags per week and a truck carries 1,000, that would mean 10 weekly outgoing truck loads). If not, number of bags/pallets per outgoing truck, and number of bags produced from 1 full log truck…?

4300 truck loads of fiber annually and 3,000 finished product trucks, based on the 70k of finished production.

3. 3. What kind of benefits package would you offer the 30-40 new employees, and/or what does it cost?

We current provide full medical coverage at no cost the employee or their family. 401k and paid vacation and holidays. Approximately 12,000 to 13,000 annually per employee.

4. 4. Would any consultants, outside contractors be used on the operation (not the development), for instance IT contractor, equipment mechanic, etc…?

If your asking after the operation is online, the answer is yes.

Finally, I’ll need a letter “committing” 50% of the funding for the roadway improvements. This letter will have no legal effect and is simply a requirement of the grant application (see below):

“E. No more than 50% of the cost of the transportation improvement project will be covered by Immediate Opportunity Funds. Public or private sources may provide the match. Donations of right-of-way will be considered to be part of the match. Normally, applicants for projects off the State Highway System will provide the right-of-way. (ODOT's Right-of-Way Section will verify right-of-way value estimates.)

F. The local government sponsor must demonstrate that all other funds necessary for successful completion of the project have been secured.”

The letter should state that if the Immediate Opportunity Fund Grant is awarded, Dansons Company commits 50% of the costs for required roadway improvements along S Molalla Ave frontage of the Dansons Molalla property, up to $230,000 cash plus the value of required right-of-way dedications. You might sneak in some words of thanks to Business Oregon and Oregon Department of Transportation for helping bring the Dansons Company to Molalla.

Let me know if you have any questions, and the sooner I can get this stuff from you, the sooner I can submit the application. Thank you!

-Mac

Macahan “Mac” Corthell, J.D. | Planning Director

City of Molalla

117 N Molalla Ave. | PO Box 248 |Molalla, OR 97038

Phone - 503.829.6855

Fax – 503.829.3676

Email – mcorthell@cityofmolalla.com

Website – http://www.cityofmolalla.com

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