Anyone Else Think It Wont Happen?

[goofyone]

I sat down and went through the references you supplied. Also some of the internal references in those documents.
What I got out of it can be summed up as follows.

If I read everything right the Eloi definitely qualifies under the mileage classification for a "Two Seater" which would only appear to require 31.6 MPG . (That's from the average MPG charts) Not clear from the standards whether that's combined or not, but I think the number I saw for Elio combined was about 60 MPG.
The issue that might be problematical is the "Car" thing. But it would probably never have gotten past the first stage if the DOE was going to play the definition game.
Chapter II of title 10 of the Code of Federal Regulations part 611.206 appears to give some priority to the Elio project since the factory is currently sitting idle and is over 20 years old.

With that said, I'm sure that Elio had professional help in making their request since government grants and loans are something you need a specialist, or team of specialists to do right.
.........................................................................

With regard to District 7 Caddo Parish Commissioner Stephanie Lynch.
Lynch was elected to the Shreveport City Council on Nov 4.
Why do I have a feeling that we haven't heard the last of her?

You would be correct that the "car' question was indeed an issue at one time as the ATVM loan program did exclude vehicles which did not meet the NHTSA definition as a car however this was corrected with the passage of another bill which opened the ATVM program to any vehicle which could meet the 'Ultra Efficient Vehicle' requirement of carrying twp people in an enclosed cabin at minimum of 75 MPG and/or electric equivalent.

http://green.autoblog.com/2009/10/30/president-signs-bill-expanding-atvm-program-to-three-wheelers/

I also read the existing idle plant as providing EM some priority in the program.

In meeting notes from a Caddo Parish Commission meeting from May 2014 EM tells the commission that they had completed the ATVM application and were having someone review it so they did in fact do this the smart way which is not too surprising as EM has generally been pretty good at finding the outside expertise needed to tackle the various parts of this project.

http://www.caddo.org/AgendaCenter/ViewFile/Minutes/05202014-241


Discounting now City Councilwoman Stephanie Lynch at this point would likely be a mistake. While the plant is not inside the city limits I have no doubt she will use her position to speak out against this project and/or actively hinder the project in any way she can.

 

[NSTG8R]

G1. Did Stephanie Lynch give a good reason for rejecting Elios being built there? o_O

 

[goofyone]

G1. Did Stephanie Lynch give a good reason for rejecting Elios being built there? o_O

Her stated reasons are uncertainty about the financial viability of Elio Motors and whether purchasing the former GM plant is a worthwhile investment for Caddo Parish.

In my opinion her stated concerns are actually quite reasonable however her actions are the ones which have been questionable. By filing a lawsuit against Caddo Parish she wasted her constituents money having to defend against a lawsuit filed by an active commissioner who was upset after losing a vote. She has also continued to work and speak out against Elio Motors in any way she can even after the contract was signed between Caddo Parish and IRG. This is actually working against the interests of the Parish as she is pushing for a deal to fail which would further delay job creation at the site and could cost the taxpayers even more money.

 

[WilliamH]

G1. Did Stephanie Lynch give a good reason for rejecting Elios being built there? o_O

You might want to look at the attached.........
http://forward-now.com/wp-content/uploads/2013/08/Lynch-v-CaddoOCR.pdf
It is the original Petition for Declaratory Judgement in the action Lynch v. Caddo Parrish Commission.

 

[NSTG8R]

You might want to look at the attached.........
http://forward-now.com/wp-content/uploads/2013/08/Lynch-v-CaddoOCR.pdf
It is the original Petition for Declaratory Judgement in the action Lynch v. Caddo Parrish Commission.

Ahh...Thanks, William. Now I get where she's coming from. Can't say I agree with her view though. Not sure of the population, or even the other industries in Shreveport, but if there was a chance of getting 'possibly' 1500 of the residents back to work, I'd have to roll the dice that Elio can do what they say they can....JMHO.

 

[Rickb]

You might want to look at the attached.........
http://forward-now.com/wp-content/uploads/2013/08/Lynch-v-CaddoOCR.pdf
It is the original Petition for Declaratory Judgement in the action Lynch v. Caddo Parrish Commission.

WilliamH, thanks for that information as it provides insight and understanding for her action. Avards knows Louisiana politics.

 

[tonyspumoni]

This is a great forum. I log in every couple of days or, if I'm otherwise preoccupied, weekly and I never fail to learn something new and cool, usually substantiated by a reference or data instead of the empty opinions one usually gets. Well done everyone. This Cado Parish brewhaha is entralling - thanks for sharing!

 

[NSTG8R]

This is a great forum. I log in every couple of days or, if I'm otherwise preoccupied, weekly and I never fail to learn something new and cool, usually substantiated by a reference or data instead of the empty opinions one usually gets. Well done everyone. This Cado Parish brewhaha is entralling - thanks for sharing!

Agreed! I learned something today.

 

[tonyspumoni]

Investors aren't going to blow town, but what they are able to do is use their private funds for 'other' actual business expenses (salaries, bonuses, etc.) over time if/or when they get the low interest ATVM Loan. It may also free up their personal funds for other huge return investment opportunities.

Government's Role: A possible low interest Federal Government ATVM Loan used to tool up a manufacturing plant made available thru a government supported State and Local Government Economic Development Foundation that provides tax break incentives extending 10 years beyond startup to include a 13% refund on each individual employees salary written into the Caddo Parrish Contract deal. If one is an Elio supporter we need to praise all levels of government and the political process in helping to make Elio Motors a success. No wonder it's taking so long with all the politics and tax payer funding (NOT GIVEAWAY!) involved. It's a win, win, win scenario. Go Elio!

I fully agreed that any private capitalization in excess of the ATVM, should it fund and should it prove sufficient, could be use to pay off original investors. But this would be have to happen by new investors buying equity from the old, which would either diluite the original investors' ownership share or change the ownership structure entirely. If any existing equity starts looking for an early exit, watch out! That's when you can tell that bad things are afoot. The insiders always have the best information and since this is not a publicly traded entity, they can share inside info all they like.

I guess the existing equity is in for, what, something north of $50M? So they need $170 to get going? Let's say prospects look good. Would you sell for a 3.5:1 multiple now or wait and get more when this blows up huge?

 

[tonyspumoni]

And in biotech, the industry I know best, VC exit multiples should be 10:1, since the fail rate is high. If you make 10 plays and 9 fail, you break even on a 10:1 multiple for the winner.