Submitted by Susan Hardee Steger
May 31, 2016 7:00 a.m.
During the Nassau County Board of Commission (NCBC) meeting on May 9, Michael Stokes, chair of the Nassau County Economic Development Board (NCEDB) addressed the importance of approving the Economic Development Grant under consideration by the NCBC for LignoTech Florida. Commissioners Steve Kelley was not in attendance.
Despite a previous 5 – 0 vote approving previous economic development grants for DaySpring Village and VyStar, Commissioners Steve Kelley and George Spicer do not seem convinced awarding a grant to LignoTech is a good deal for Nassau County much to the schgrin of members of the NCEDB and other community leaders.
LignoTech is proposing to invest 110 million to build a facility on Rayonier, A.M.’s Gum Street mill site and bring 50 or more high paying jobs ($50,000) to the community. Along with additional jobs, air emissions will be improved. According to Nassau County staff and the majority of commissioners, the county is struggling to maintain roads and infrastructure. Approving the LignoTech Economic Development grant is expected to bring over one million in tax dollars to the county over the next 10 years and millions more after ten years.
The visual demonstration presented by Stokes, shows three small containers of Fruit Loops representing current property taxes received by the county, city and school board on the proposed industrial site. The larger containers show the property tax revenue (discounting the proposed incentives) over 10 years once the industrial site is developed.
Editor’s Note: Since the Fernandina Observer was unable to cover the May 9 meeting of the Nassau County Board of Commission, we wish to update our readers by posting significant discussions on the proposed LignoTech operation that have taken place at the county meetings.
Update: At the NCBC meeting on May 24, 2016, Kelley requested and gained approval for a $7,500 cost benefit analysis even though county staff was unable to identify any significant cost to the county. Traffic will flow on city and state roadways and police and fire services will be provided by City of Fernandina Beach. In order to sway LignoTech, commissioners wish to show a united front so approval of the $7,500 was gained on a 5 – 0 vote.The study is expected to take 4 weeks.
For more information read “Gift horse or Trojan Horse? . . . , by Suanne Z. Thamm.
Indeed, we’re not “giving away”, we’re “asking for less in order to get more”. Similar to a hotel offering a “Pay 2 nights, stay for 3” deal. Better to sell 2 nights than none at all, right?
Also, these tax incentives were adopted in 2012. To now want to cancel them is like the hotel telling the guests that the deal is off … when they are at the front desk checking in. Not good for our reputation. 🙁
It is good that communities get to vote on which businesses get tax incentives. Philippe, I wish your business received tax incentives. But some industries come with a cost that might not be to the benefit of the entire community. In New Orleans, when Katrina hit, the toxic stew they talked about wasn’t just sewage. Unless LignoTech builds its storage tanks 17 ft or higher in the flood plain (which it does not plan to do) the “stew” could be in most businesses and homes downtown in Fernandina Beach in a hurricane. They found in New Orleans that the debris field dislodged tanks and punctured holes in well maintained storage containers. That did not work out well. Clean up is expensive and long. Those people did not wear masks just for mold protection. Did everyone check their homeowners or business insurance policies to check their coverage for chemical clean up? Do you really want to live in your home after the toxic chemical water has been in your house? And good luck selling it after clean up. It’s not a matter of just anchoring the stuff down in a tank. Economic development should also be moving all industry, in general, away from flood prone areas for the sake of Nassau County’s workers. Does anyone really think the Shave bridge will be operational after a major hurricane? Logs may float, but not trucks. These folks are going to be out of work for a long time, perhaps permanently after a hurricane. Rayonier is located in the flood plain. It will likely not be operational for a long time in the case of a Category 2 hurricane (according to state flood/surge hurricane predictions) or never open its doors again in the case of a higher level storm. Do you really think they would open up again in the same place? Why put a facility in a floodplain on an island that is dependent upon a bridge and a railway that goes under water from time to time? What will happen to WestRock and Rayonier if the bridge goes down? Where do these people work? At least on high land with no bridge you have a fighting chance of putting things back together again quickly. I understand that industry may not care that hazardous materials might enter our homes or other businesses through flooding. But it just seems to make sense that if you wanted your business to survive an inevitable event, you would plan to put your business in a safer place to ensure continued profitability.
Just to clarify, Katrina impact to New Orleans was not a direct result of the 12′ surge that hit a bit further east (at Biloxi and Gulfport). The failure of levees due to rain and flood pressure did that. To get a better image of what island homes will look like following a Katrina surge level, do a web search for damage along the Mississippi coast. We won’t have stew. There won’t be a ‘pot’. Our homes will be removed from their sandy foundations.
Faith,
While I understand your concerns, we can’t always work in everyday life under the constant fear of the worst possible scenario. How long has the Shave Bridge been standing and how many times has it been shut down for more than 24 hours? The reality is that mills along the FL/GA coast are almost all located in the floodplain as their location near a port and a major waterway were key ingredients to their development. Right now the ligno is being burned off and being carried in the air we breath. So which is the worse alternative, to continue to breathe that pollutant or find some other use for it and face the risk of some sort of natural disaster that would cause a spill but may never happen?
Kelly’s stalling in nothing more than political grandstanding as the County has no real dog in the hunt from an impact standpoint. Certainly the incentive contract should be written to protect the County and the City from them leaving before the full taxation hits, but if the investment numbers are accurate, that is unlikely.
The use of the fruit loops was very representative in more ways than one.
Dave Lott is right on point. Thanks.
Thank you for presenting your position. I understand the mentally of people who smoke after reading the package warning. When Nassau County files for bankruptcy when the island goes down due to a prolonged environmental clean up from the inevitable hurricane, I am sure you will be around to help. New Orleans swore they didn’t get hurricanes either. We are well overdue. I am glad you consider me an alarmist, those people generally save lives and economies. Keep reading the label on the package.
Will Lignotech build the facility if they don not get the tax incentives?
There are a number of locations under consideration. A few in the United States, and some overseas.
…none of which produce even a fraction of the desired lignin.
LignoTech’s desire to build here is leverage, and we want to incentivize them to do something they already badly want to do. I don’t think that’s how negotiating is supposed to work.
It’s becoming exceedingly obvious the interested parties have a fervent desire for this company to build their operation here. If that’s true, and there is an abundance of unused lignin from which to make a profit, then the “political grandstanding” is being done by those who wish to capitalize on the secondary benefits of LignoTech’s sweetheart deal.