AMBASSADOR BRIDGE

DETROIT, MICHIGAN

DETROIT INTERNATIONAL BRIDGE COMPANY

FEDERAL INSTRUMENTALITY OF 1NTERSTATE COMMERCE

OFFICE OF THE PRESIDENT

12225 STEPHENS ROAD
W A RR EN , MI 4 8 0 8 9 WARREN. M i .

A Michigan Business Solution for a Michigan Budget Problem

Transportation Budget Benefits from $867 Million Toll Credits from Private
Investment

Federal law provides that certain expenditures made by the Ambassador Bridge from 1992 and
forward are eligible to allow Michigan to leverage federal transportation funds. The Ambassador
Bridge is diligently working with MDOT to ensure the maximum potential of the expenditures
resulting in more than $3 billion in federal matching funds.

The review by BDO Seidman of past expenditures, based on agreed upon procedures, and future
projections will be delivered directly to Michigan legislators in both the Senate and House responsible
for closing the budget gap with reliable funding projections. The record shows that only Ambassador
Bridge expenditures of private i n v e s t m e n t are available for MDOT to utilize NOW.

Ambassador Bridge investments can earn "toll credits" for Michigan to match Federal road dollars,
filling an anticipated state budget gap NOW, as well as future years. According to MDOT Director
Kirk Steudle in a Nov. 19 letter to the Ambassador Bridge, if MDOT and the Ambassador Bridge are
able to collaborate and generate toll credits from Ambassador Bridge expenditures, MDOT could use
those toll credits "on highway projects in the Grand Rapids area, Upper Peninsula, or on transit
projects across the state."

The good news is Ambassador Bridge toll credits are available immediately to Michigan lawmakers to
address pending road funding shortfalls. Statewide infrastructure projects will be able to move forward,
creating thousands of construction jobs. The Ambassador Bridge is a Michigan company that has been
in business for over 80 years and provides thousands of jobs statewide and will provide additional jobs
through our future investment at the Ambassador Bridge. It is a win/win opportunity for a Michigan
company to provide a solution to the Michigan budget struggle.

Advantages of Ambassador Bridge Toll Credits:

•AVAILABLE NOW
•REQUIRES NO PAYBACK
•NO RISK TO TAXPAYERS
•IN ACCORDANCE WITH FEDERAL LAW
•CREATES MUCH NEEDED JOBS
•STATEWIDE ROAD PROJECTS

TH E A MBA S SA D OR B R ID GE AC R OSS TH E D ET R OIT R IV E R C ONN E CT IN G D ET R OIT AN D TH E B ORD E R C I T I E S OF ON TA R IO

IS TH E W OR L D' S L ON GE S T -SP AN SU SP E NS ION B R ID GE AN D WIL L B E R EA DY F OR TR A FF IC IN E AR LY SU MME R , 1 9 2 9 .
 KEITH CRAIN: Why not let Moroun expand his bridge? - Crain's Detroit Business - Detr...
Page 1 of 1

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KEITH CRAIN: Why not let Moroun expand his

bridge?
-
t y F t It t ra,,.

I know it's perhaps one of the most unpopular positions in Michigan, but for the life of me, I can't figure out why we just don't let
Matty Moroun expand his bridge.

I don't understand why our new governor, who I think is the best example of entrepreneurism around, wants to substitute public
money for private investment -even if the public dollars are coming from Canada and he s leveraging them to get more federal
'

road dollars into Michigan. It's all public money.

Moroun wants to put his own money into the bridge,

It's probably heresy to suggest it, but if someone came along and offered to buy the Mackinac Bridge tomorrow, I'd sell it in a
nanosecond. I'm not saying we don't need a second bridge; I just don't think we need to own every project in our state.

The governor of Indiana, Mitch Daniels, sold the Indiana toll roads to a private company for several billion dollars, and by all
standards the toll roads are doing just fine in private hands.

No one has been able to convince me that we will not get by quite nicely with an expanded Ambassador Bridge for many years. I f
we ever needed even more lanes for crossings, then I bet we could find some other private investor to build it in a decade - or
whenever it's needed.

Meanwhile, I understand it may not be long before the debate over a rail tunnel crossing to accommodate double- and triple-
stacked containers will heat up. If that happens, it will allow for even greater freight traffic between Detroit and Canada.

If we can find someone who would like to invest money and offer the public and business a service, why in heaven's name do we
want public dollars to get involved? I t just simply doesn't make a lot of sense to me.

This may be the political hot potato of the decade, unless you'd rather talk about sharing the ownership of the Detroit water
system or even selling it to private enterprise. That gets a lot of folks mad, too.

But heck, if the owner of the Ambassador Bridge wants to expand his crossing, let him. It's his money, risk and reward.

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 LETTERS: Moroun should submit report - Crain's Detroit Business - Detroit News and
In... Page 1 of 3

Emu
Do the Right Thing Ethos Week March 14-
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CRAB'S DETRO IT BUSINESS Detroit and Southeast Michigan's premier business news and information
website
Feb , . e r y 05, 2011 5:0 0 PM

LETTERS: Moroun should submit report

Moroun should submit report

Editor:

I am writing in response to Keith Crain's Jan. 31 column asking "Why not let Moroun build an expanded bridge?"

I t would be more accurate for your headline to pose the question "When will Moroun seek the necessary approvals from
Canadian authorities?"

Allow me to explain.

In December 2007, the Ambassador Bridge Co. submitted its preliminary environmental impact statement to Canadian
authorities for the building of a second bridge.

After an initial review, the submission was found to be significantly deficient in that it did not give any consideration to how the
expansion of the Canadian inspection plaza facilities resulting from a twinned bridge would affect the existing area.

The bridge company was informed of this. Yet, more than three years after it submitted the original report, and despite several
requests from the government of Canada, it has yet to submit a revised environmental impact statement.

If and when the bridge company completes its environmental assessment work, the environmental review process in Canada can
get under way.

The government of Canada has no interest in disadvantaging the Ambassador Bridge's long-term sustainability and has
repeatedly said it would not block "twinning" if that option were to receive the environmental and other approvals that it, like the
Detroit River International Crossing, requires.

DRIC has received all of its environmental assessment approvals. Until a similar process is completed for the Ambassador
Bridge project, it is misleading and inaccurate to talk about "twinning" as if it were a real option.

I f it's an option that the Ambassador Bridge is serious about, it should provide the documentation necessary for the
environmental assessment process to proceed.

Roy Norton, Consul General of Canada, Detroit

httn:// 7/15/71)11
 AMBASSADOR B R I D G E
D E T R O IT IN T E R N A T IO N A L B R ID G E C O M P A N Y

February 14, 2011

Roy B. Norton
Consulate General of
Canada 600
Renaissance Center
Suite 1100
Detroit, MI 48243-1798

Dear Roy,

It has come to our attention that you personally have made statements
around Michigan at business groups and Chambers of Commerce regarding
the Ambassador Bridge that are incorrect and are misrepresenting the facts.
Please cease and desist that action.

Some of the statements you have made that misrepresent the facts are that
the Ambassador Bridge congestion (which is very unusual) is related to capacity
issues. This could be no further from the truth. As you are aware there are
facilities at the Ambassador Bridge to handle all the traffic including the traffic
from the Blue Water Bridge. An example of that fact is recently Canada had a
"Snow Emergency in Sarnia" and closed the 402 highway for several days leaving
vehicles and people stranded for days. During this Canadian Emergency Canada
failed to respond in Windsor and could not and did not open inspection booths that
are available at the Ambassador Bridge causing long delays for the International
Travelers and Commerce. During this failure by Canada to respond to-its_own
crisis- youblame the Ambassador Bridgeior_capacity pr_oblemsr--- WRONG. This
was a failure of Canada and should be noted as such. The delays were literally
created by Canada by not manning available Canadian Customs inspection booths.

Your comments regarding the condition of the Ambassador Bridge are

also, incorrect. As Public Works and Government Services Canada can attest
the Ambassador Bridge has its facilities inspected on an annual basis by
world class outside engineering consultant and has follow up midyear
inspections to capture the maintenance work being preformed yearly. This
process is not duplicated at any other border crossing including those owned
by Canada. Public Works and Government Services Canada is invited to visit
1
the Ambassador Bridge annually and review the inspection reports that are
without match from other facilities.

The Ambassador Bridge is the most efficient border crossing in North

America and as such we understand that government bureaucrats are
puzzled by what and how we function. However, this is no excuse for
misrepresenting facts to the public.

1
 THE DETROIT INTERNATIONAL BRIDGE COMPANY

We find your comments in your letter to the Editor that was printed in
the Detroit Crain's Magazine on February 7, 2011 are also, misleading. The
Ambassador Bridge submitted a complete Environmental Assessment to
Transport Canada (TC) with all the necessary studies as required. TC
demanded that the Ambassador Bridge include in its studies the affect if any
if the Plaza used by Canadian Border Services Agency were to be expanded
in the future. The Ambassador Bridge informed TC that any expansion of the
CBSA facilities for the future would not expand into the community but,
would remain on property already part of the Ambassador Bridge owned
plaza. TC rejected that view until CBSA engaged an outside consultant and
after long delayed final study they came to the same conclusion as the
Ambassador Bridge. Even though we believe the EA is complete with the
final Master Plan Study done by CBSA, the Ambassador Bridge is currently
updating the studies based on CBSA Master Plan and will submit to TC
shortly in an effort to bring the red tape to an end.

In 1990 Canada and the Ambassador Bridge Companies reached a

settlement regarding ownership, control and operations of the Ambassador
Bridge. With that settlement over ten years of litigation was resolved with
prejudice and ownership, control and operations of the Ambassador Bridge was
put to bed forever. The settlement was based on Canada demands that the
Ambassador Bridge build a new off-site commercial inspection facility in a
nearby industrial park. This off-site facility has worked very well and in fact
recently during a national failure of the CBSA electronic clearance equipment
we were able to send all the commercial traffic to that off-site facility for
manual clearance. This allowed for continued movement of commercial
vehicles at the Ambassador Bridge when other border crossings were virtually
shut down. This is just one of many available flexible processes at the
Ambassador that does not exist at other locations. The Ambassador Bridge
built the off-site at Canada's demand and helped design a dedicated road to
connect the off-site with the plaza when asked by Canada to do so. Canada
needs to improve the roads to the Ambassador Bridge as they have
committed to in the past including a secure road if necessary.

For your infonnation the Ambassador Bridge already has in excess of

$250 million in toll credits available to Michigan to use this year and into the
future, plus the $400 million capital cost of our new span. The Ambassador
Bridge also pays property tax (DRIC will be exempt) Ambassador Bridge pays
income tax (DRIC will be exempt), Ambassador Bridge pays Michigan
Business Tax (DRIC will be exempt) and the Ambassador Bridge does all of
that without taxpayer subsidy and without taxpayer risk (DRIC cannot
promise it can do that). If Michiganders like the rhetoric that Canada is
purporting to bring to Michigan they should love the Ambassador Bridge.

The truth is while Canada demands Michigan to allow a Canadian

Bridge to land in Delray, Canada is attempting to prohibit a Michigan
Company that landed in Canada in 1929 from replacing, repairing and
improving its facility. The rhetoric should stop today. We understand that a
new Ambassador Bridge would make it hard for the Canadian Bridge to
compete, but that's not a good reason for Canada to continue to delay, stall
and add red tape to the efforts by the Ambassador Bridge.

We accept that you are new in your important position and are
depending on staff to inform you of the current situation at the border.
However, it is incumbent upon you to meet with the Ambassador Bridge
Management and inform yourself prior to making public statements that are
prejudicing our company and its owners and management.
THE DETROIT INTERNATIONAL BRIDGE COMPANY

We appreciate your assurance that the Government of Canada has no

interest in disadvantaging the Ambassador Bridge and has repeatedly said it
would not block the twinning of the Ambassador Bridge. However, we look
forward to the actions by Canada not just your words.

We are prepared to meet with you at your convenience and bring some
clear reality to the table including a discussion regarding finishing 401
Highway to the Ambassador Bridge and a secured road if necessary.

Dan Stamper President

Detroit International Bridge Company
 For the past 80 years, the Ambassador Bridge has served as a link between Detroit and its neighbor,
Windsor, Ontario. Although it was a monument to cooperation between 2 nations, it was born not
out of peace and cooperation but amid bitter squabbling between public and private interests over
whether it should be built and who would build it.

Joseph A. Bower; a former Detroiter who now headed a New York financial syndicate, was
approached by James W. Austin, then head of Detroit Graphite Company. Auston wanted Bower to
build a bridge over the Detroit River and he wanted a contract for his Detroit Graphite Company to
paint it. Bower went to congress and got a building franchise only to face a huge political hurdle in
the form of Detroit Mayor John W. Smith. Mayor Smith wanted the cities of Detroit and Windsor to
join in building a municipally owned bridge, even though such an arrangement was impossible due
to charter limitations in both Detroit and Windsor.

Despite the obstacles, work began on the construction of the bridge in May 1927 just before the
franchise for the bridge expired. In the meantime, support from Detroit City Council President John C.
Lodge and Detroit business leaders helped gather voters of Detroit for approval of a bridge
ordinance. It was passed and full construction began on both sides of the river in August of 1927.
Despite some construction challenges, the bridge was completed 9 months ahead of schedule and
Detroit now boasted the longest suspension bridge span in the world at 1,850 feet.

During construction of the bridge, it was referred to as the `Detroit River Bridge'. Joseph Bower felt
this was too impersonal. He turned down the recommendations to have it named the `Bower Bridge'
and suggested instead, that it be called the `Ambassador Bridge'.

The Ambassador Bridge has seen many improvements over the years made by private investment.
Fighting over ownership and control of the bridge has been ongoing for decades between Canada
and the US. It has remained under US. private ownership due to rights first established between the
governments of US., Canada, and British Parliament in the 1920's. Since it's inception it has been a
jewel ofAmerican and Detroit born ingenuity. Now in 2011, it remains the most efficient border
crossing in North America. It is continuing its legacy for being the #1 international border crossing
without any taxpayer funding.