chemical project Siting
OPPORTUNITY
Two major corporations with unmatched expertise in the chemical industry and 30 years experience working together across the globe were joining forces to pursue a multi billion dollar chemical manufacturing facility on the Gulf Coast and considering multiple sites in different states. The project was a generational opportunity that would bring significant investment, local revenues, hundreds of permanent jobs and a deep commitment to community partnership and collaboration.
Among factors including access to transportation infrastructure, a skilled workforce and a 1,000+ acre site, part of the site selection process included understanding the tax obligations associated with each. Prior to initiating the permitting phase, the developer was evaluating tax incentives at each of the potential sites including the front runner in the Texas Coastal Bend.
While many understood the tremendous economic potential the project would bring, others had concerns about its location outside of established industrial corridors and what the potential impacts would be to the community. Because the tax incentive process in Texas involved local votes, a multi-tiered stakeholder engagement plan was a critical part of success.
APPROACH
An information campaign was initiated to engage local elected bodies, community and civic organizations, neighborhood groups and any residents who expressed an interest in learning more or hearing from project representatives. The level of transparency and details shared at this early stage in a project was unprecedented in the industry.
Engagement included formal presentations, small group meetings, the establishment of a social media presence with highly rated response rates, and one-on-one, in-person meetings with people looking for answers to their questions or concerns. After over 100 meetings in 100 days, project team members had established strong trust and credibility with many community leaders and residents. Local conversations, media coverage and overall favorability were taking a positive turn.
The last step was formalizing the tax incentive agreements that the project needed to secure before moving forward. After listening to residents’ sentiments and concerns over the last few months, and with a better understanding of what they needed to feel safe and protected, project representatives worked with local officials to develop a “Good Neighbor Program” that was ultimately included in the final agreement. The program included numerous initiatives to address concerns around emissions, safety, education and workforce readiness, local business opportunities and overall quality of life.
RESULTS
The project secured the votes it needed to obtain the tax incentives it was seeking. Local sentiment shifted from “no more development” to “this will be transformational for our area.” Media headlines went from “Texas town nixes largest cracker plant” to “Project’s benefits outweigh the negatives” and “An opportunity too big to fail.”
And years later, once the facility was built and the Good Neighbor Program was well underway, elected officials who passed a resolution in opposition to the project ultimately acknowledged that the team delivered on its promises and created lasting benefits for the community. To this day, the facility continues to uphold its commitments to the community and is viewed by peers and communities as a best practice model.