Port of Brookings Harbor

1. Port of Brookings Harbor • 2011 cont. • Maintained a positive cash flow throughout reconstruction • Delivered second “Clean” Audit • Federal, State and local officials immediately respond • FEMA on ground in 10 Days • Engineering and permitting done in 90 days

2. Port of Brookings Harbor • Story of Renewal • 2008 functionally bankrupt • Over $6,000,000 debt ($4m+ to IFA) • Could not meet obligations • 2009 Commission developed Strategic Operating Plan • Severe expense reductions • New Part Time Director • Staff reductions • Renegotiate terms of Debt

3. Port of Brookings Harbor • 2009 cont. • Implemented a comprehensive new accounting system • Developed new revenue sources • Inventoried maintenance issues • 2010 First positive cash flow • First “Clean” Audit in over 15 yrs • Ended year with net profit • 2011 Tsunami destroys much of Port • Port management & staff responds

4. Port of Brookings Harbor MARCH11, 2011

5. Port of Brookings Harbor • 2011 cont. • Reconstruction begins with 4 months • Entire reconstruction completed with 18 mos • 2012 Port Reconstruction completed Over $10 million cost • A new modern Port facility • $10,000,000 of new assets added to our balance sheet with no additional debt.

6. Port of Brookings Harbor • 2011 cont. • Reconstruction begins with 4 months • Entire reconstruction completed with 18 mos • 2012 Port Reconstruction completed Over $10 million cost • A new modern Port facility • $10,000,000 of new assets added to our balance sheet with no additional debt.

7. Port of Brookings Harbor • Lessons • Management Structure • Res. 422 procedures • Tight Financial Controls • Good financial reporting • Aggressive approach to revenue and use of Port property

8. Port of Brookings Harbor • Challenges • Dredging to assure port functionality • Cost ($450K+ annually) • Permitting • Politics • Infrastructure Maintenance & development • Development Capital • Private Partnerships • Grants • Earmarks • Necessary for continued revenue growth