Hemlock Semiconductor – ECD Incentives $299.5 million (State $245MM; Local $54.5MM)

TN has invested at least $390 million (Hemlock $245MM; Wacker $83MM; Solar Institute et. al. $62MM)

From Nashville Biz Journal, (1/15/13) http://bit.ly/XbfA7n

“According to our research, Tennessee committed $245 million to Hemlock, including things like job training and energy savings.”

“The state committed $83 million to Wacker Chemie AG, a Germany-based company that has delayed the opening of its $1.5 billion plant in East Tennessee until 2015.” [Next shoe to drop?]

“Phil Bredesen, who was governor when Hemlock and Wacker Chemie were recruited to Tennessee, also funneled $62 million in stimulus dollars to the state's solar industry, including the creation of the Tennessee Solar Institute.”

From Commercial Appeal, (1/14/13) http://bit.ly/S5cR23

Company laying off 300 (of 400) employees.

“In September 2011, the State Building Commission approved $245.9 million in state funding for the plant.” ($150 million of it bonded)

From the Tennessean, (9/18/11) http://tnne.ws/pIaalm

“When the Hemlock project was announced in December 2008, then-Gov. Phil Bredesen described it as a project with “the potential to catapult Tennessee to the front of the emerging solar technology industry.”

“Exactly how much Tennessee has committed to solar is difficult to quantify. Earlier this month, the State Building Commission approved $36.1 million in bonds and cash for construction of Wacker’s Cleveland facility, but that represents only a sliver of the state’s total commitment.”

“After analyzing agreements with Wacker and Hemlock, the Nashville Business Journal last month estimated the state’s current and future commitments to both projects to be $328 million, a figure that an ECD spokesman could not confirm.”

Jarrod Erpelding, a spokesman for Hemlock, says the company has already signed contracts for most of its production for the first few years it is in operation. The contracts will shield Hemlock from price fluctuations, he said.

“What’s going on is this really is the maturation of the solar industry,” he said. “In many respects, it’s a sign that the industry is becoming more stable.”

Local ($54.5 million)

50% PILOT for property taxes

“After tax abatement, HSC will generate more than $40 million in county property taxes, at the current tax rate, through its first two decades here.” Leaf Chronicle

Thus, county is foregoing $40 million in property taxes at current tax rate.

“In May, the Montgomery County Commission purchased the Teeter farm on

behalf of the IDB for $20 million. HSC is being given the land, but it will pay $5.5 million toward interest on the bond the county got to secure the land.” [Net $14.5 million for HSC] – Leaf Chronicle