Tax Increment Financing

9 Months Ended

Sep. 30, 2013

6. Tax Increment Financing

In February 2007, the operating subsidiary that constructed the Wood River plant received $6.0 million from the proceeds of a tax increment revenue note issued by the City of Wood River, Nebraska. The proceeds funded improvements to property owned by the operating subsidiary. The City of Wood River will pay the principal and interest of the note from the incremental increase in the property taxes related to the improvements made to the property. The interest rate on the note is 7.85%. The proceeds have been recorded as a liability which is reduced as the operating subsidiary remits property taxes to the City of Wood River, which began in 2008 and will continue through 2021. The LLC has guaranteed the principal and interest of the tax increment revenue note if, for any reason, the City of Wood River fails to make the required payments to the holder of the note or the operating subsidiary fails to make the required payments to the City of Wood River.

The following table summarizes the aggregate maturities of the tax increment financing debt as of September 30, 2013 (in thousands):

Remainder of 2013	$	200
2014		431
2015		464
2016		501
2017		540
Thereafter		2,247
Total	$	4,383