The June 19, 2018 Salinas staff report notes that "the business represents that they have secured a lease from Union Pacific on the site, and have completed project design documents, and are now trying to secure financing for the project. The business has indicated that the total cost of start-up for this project is approximately $101 million, including nearly $79 million in equipment and slightly more than $17 million in construction costs. To date, the business has secured about $76 million through selling equity, acquiring debt, and personal resources. This leaves a gap of about $25 million to complete the project." The City submitted a federal "Better Utilizing Investments to Leverage Development" (BUILD) grant application for that $25 million gap, and the report noted that AEI would cover Salinas city staff time on the project.
The September 4, 2018 Salinas staff report notes that "Subsequent to the submittal for the BUILD grant application, the project proponent has continued their due diligence and has adjusted the estimated project cost from $101 million to $118 million. This is mostly due to increased construction costs at the site, along with some increased equipment and professional/engineering costs. As a result of these increased costs, the amount being requested in the grant would increase from $25 million to $40 million." The City approved submitting a grant application for the federal "Consolidated Rail Infrastructure and Safety Improvements" (CRISI) grant program to cover the additional $15 million.
There is no anticipated cost of this project to TAMC at this time.