Case Studies from DM&E Railroad, Watco: Mark Mickelson & Company

   Mark Mickelson & Company
   101 N. Main Ave.
   Suite 217
   Sioux Falls, SD 57104
   Phone: 605-977-4873
   Fax: 605-335-4982
   Email@mickco.com

Sioux Falls Regional Landfill— Sioux Falls, SD (Environmental Incentives)

The Sioux Falls Department of Public Works retained Mickelson & Company to provide advice concerning potential environmental incentives associated with the voluntary installation of a landfill gas collection system and the subsequent destruction of the methane content contained in the captured gas. This system began operations in April, 2006, and currently operates 42 wells with a landfill gas flow rate of 1,000 standard cubic feet per minute (“scfm”). Expansions are planned that should bring the landfill gas flow rate to over 2,000 scfm.

Dakota, Minnesota & Eastern Railroad (DM&E)—
Sioux Falls, South Dakota (45G Tax Credit)

Mickelson & Company has and continues to advise DM&E and its affiliate, Iowa, Chicago and Eastern Railroad (IC&E) on a joint track improvement program. Mickelson & Company advised the short line rails and one of its major shippers of the availability of a federal income tax credit. The tax credit is available for the shipper and is designed to encourage short line track improvements. As a result of this advisory, DM&E and IC&E recently completed a three-year, $49 million program.

Watco, Inc.—Pittsburgh, Kansas (45G Tax Credit)

Mickelson & Company continues to advise Watco and its 16 affiliated short line railroads concerning the same federal tax credit and its transfer to one of the Company’s major shippers. This advisory role by Mickelson & Company has resulted in a $75 million joint track improvement program for Watco’s track lines.

Jansmick Land Investments, LLC— Sioux Falls, South Dakota (Real Estate Development)

Mickelson & Company continues to advise Jansmick on the development and sale of nearly 200 acres of commercial and industrial land in the northwestern section of Sioux Falls. This part of the city is one of the fastest-growing locations for new industry and our advisory role has ensured fair market prices.

Lennox International—Richardson, Texas (Corporate Divestiture)

Mickelson & Company’s predecessor advised Lennox International, a Fortune 500 Company, on the disposition of 51 businesses over a twelve-month period. A key component of this advisory engagement was the discrete, individual sale of each business to different buyers with locations in the United States and Canada. This advisory role resulted in a significant purchase price proceeds on associated revenue of $325 million.

Other—Varied Locations

Mickelson & Company has also played a key advisory role for a number of individual businesses on the valuation, financing alternatives and sales prospects for their companies. In addition, Mickelson & Company has been engaged in a contract business development role with a leading Sioux Falls company to focus on specific business objectives.