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Town presentation laid out risks, negotiation history and compromise on Micron project
Summary
A town presentation to the board summarized challenges of applying current fee models to billion-dollar projects, legal and fiscal risks if fees were litigated, and the negotiation that narrowed the town's initial ask to a three-year, $30 million agreement limited to Fab 1.
Town staff and Deputy Supervisor Bick presented a slide deck explaining why the existing permit-fee formula is not well-suited to projects of the magnitude proposed by Micron and describing the negotiation history that led to the present agreement covering Fab 1.
Slides noted the town's initial valuation approach could have produced a multi-hundred-million-dollar fee for the full four-fab project but that legal and practical risks — including potential litigation over pre-paid fees and costs for the town to defend such suits — made that route problematic. The presentation stated the initial town ask was approximately $150 million over 15 years for the entire project, but the negotiated compromise limited the agreement to Fab 1 with a construction cost shown in slides as $8.9 billion and a $30 million three-year package. The presentation emphasized that expenditures would be subject to fiscal controls, independent audits and public disclosure.
Deputy Supervisor Bick and staff emphasized that the town would retain control over permits and could order work stoppages if needed, and that the agreement was intended to offset taxpayer expense while funding town improvements.
