Revitalizing Auto Communities Environmental Response (“RACER”) Trust

Mayors’ Automotive CoalitionWebinar

(June 13, 2011)

Creation of the Trust

Key dates: • June 2009 – GM bankruptcy.• October 2010 – Settlement Agreement (U.S. Government, 14 States, St. Regis

Mohawk Tribe, and “old GM”)• March 31, 2011 – Trust Effective.

Close to $500M for cleanup: ($431M in separate “buckets” for all 60 sites with “knowns;” $68M “Cushion” for unexpected overruns and for any contamination found at the other 29 sites).

Roughly $220M (in funds and Property) for holding costs, redevelopment, and administrative.

• Dual Mission: remediation and redevelopment• Requires input of affected communities

Mission

Settlement Agreement ¶ 65In contemplating sales, Trustee shall consider

– (i) whether the monetary value of the purchase price is sufficient in light of the projected budget for the sale of that Property, taking into account any surplus from past Properties sold or projected shortfall on the sale of the remaining Properties;

– (ii) the potential for the reuse to create jobs in the State, and the affected community;

– (iii) other benefits to the State, the Tribe, if applicable, and affected communities (such as increasing tax revenue, reducing blight, and providing a sense of renewal);

– (iv) avoiding a material increase in the cost of or interference with the Environmental Action;

– (v) the views of the State, the Tribe, if applicable, and affected communities; and

– (vi) the reputation and credibility of the prospective purchaser.

Sold and Under Contract

Facility ID Facility Name City State Primary Use

1101 6560 Cass Avenue Detroit MI Vacant / Surplus Land

1190 GMVM - Wilmington Assembly Wilmington DE Manufacturing Facilities

1203 GMPT - Parma Complex Parma OH Manufacturing Facilities

1204 Stamping - Pittsburgh West Mifflin PA Manufacturing Facilities

1303 Grondinwood Residence Milford MI Residential

1304 1495 Oak Hollow Milford MI Residential

1307 Pontiac Centerpoint Campus - East Pontiac MI Engineering / Office / Warehouse

Various Bedford Town Sites Bedford IN Residential

Facility ID Facility Name City State Primary Use

1121 Pontiac Fiero Site (excludes Powerhouse) Pontiac MI Engineering / Office / Warehouse

1196 GMVM - Pontiac Assembly Pontiac MI Manufacturing Facilities

1197 Stamping - Pontiac North Campus (excludes Plt #14) Pontiac MI Manufacturing Facilities

1198 Stamping - Grand Rapids Grand Rapids MI Manufacturing Facilities

1202 GMVM - Moraine Assembly Moraine OH Manufacturing Facilities

1305 Pontiac Centerpoint Campus - Central Pontiac MI Engineering / Office / Warehouse1308 Pontiac Centerpoint Campus - West Pontiac MI Engineering / Office / Warehouse1310 ACC - Penske site Pontiac MI Engineering / Office / Warehouse

Sold:

Under Contract:

Trust Structure• Administrative Trustee: Elliott Laws, Managing Member• Chief Operating Officer & General Counsel: Michael Hill• Redevelopment Manager: Bruce Rasher (Patricia Spitzley

as Deputy)• Cleanup Managers:

– Delaware, Louisiana, Massachusetts, Ohio, Pennsylvania and Virginia: Pam Barnett

– Indiana, Illinois, Kansas, Missouri, Wisconsin, and New Jersey: Bob Hare

– New York: Brendan Mullen– Michigan: Grant Trigger (Dave Favero as Deputy)

RACER Team

Elliott LawsAdministrative Trustee

Bruce RasherRedevelopment Manager

Patricia SpitzleyDeputy Redevelopment Manager

Bob HareCleanup Manager for IN, IL, KS, MO, WI, NJ

Pam BarnettCleanup Manager for

DE, LA, MA, OH, PA, VA

Brendan MullenCleanup Manager for

New York

Grant TriggerCleanup Manager for

Michigan

Dave FaveroDeputy Cleanup Manager for

Michigan

www.racertrust.org

Miscellaneous

• Buyers should be aware that:– Cleanup dollars available and committed (SA Att. A)– Liability protections available (SA ¶ 69).

• Seeking contractors as well:– Statement of Qualification – to allow “apples-to-apples

comparison: – via website. – Looking for companies that will hire local workers.

• No federal or state procurement rules.• Letter of Intent on website.• Offering Memoranda, reflecting community input,

expected for first 20 sites in coming months.

Specific Input Sought

• Site-specific development information requested (for website as well for offering memoranda).

• Coordination with RACER Trust on prospective purchasers. (Some entities that have proposed appear interested primarily – or even solely -- in Machinery & Equipment and in demolition salvage (copper, steel, etc.)).

Comments/Questions