Commissioners: Shell Chemical Will Make Up For Lost Taxes

Logo © Shell Chemical

Beaver County Commissioners have announced that Shell Chemical has offered to provide compensation for property taxes that would be lost if the company is granted exemptions for the petrochemical plant it hopes to build.

Shell Chemical is seeking approval of an application for a Keystone Opportunity Expansion Zone, which would provide the company with economic incentives from the State. As part of that process, Beaver County, along with Center Township, Potter Township, and the Central Valley School District, will all have to authorize a 22 year tax exemption and abatement for the site of the planned “cracker plant”, which is currently occupied by Horse Head Corp. The exemptions will be required by the Pennsylvania Department of Community & Economic Development for Shell to see the nearly $1 billion in estimated State incentives.

That would mean big losses in tax revenue for local governments, with all four entities having previously expressed concerns about the impact it could have in the short-term. But Shell has now offered an initial proposal to contribute payments-in-lieu-of-taxes (known as PILOTs) to make up the difference.

In an interview with the Beaver Countian earlier today, Commissioner Tony Amadio said the move by Shell Chemical is an example of how the company is becoming a strong corporate partner for Beaver County.

“The PILOTs being offered by Shell will amount to 110% of the tax levels collected from the property in 2011, each year for 22 years” said Commissioner Amadio. “That’s the maximum payment allowed by law.” It would mean more than $300,000 per year for Central Valley alone.

“If this project moves forward, it will be one of the largest from-the-ground-up investments in the region in a generation” said Allegheny Conference CEO Dennis Yablonsky in a statement. “The total economic output for the peak construction year is projected to be $2.8 billion, with the total economic output for a single year of operation is expected to be $4.8 billion. Additionally, our analysis indicates the proposed project will result in 18,000 total jobs in the peak construction year, including direct and induced employment. In a single year of operation, the proposed facility could support between 2,000 and 8,000 direct, indirect and induced jobs.

Commissioner Amadio told the Beaver Countian that local officials continue to have meetings focused on the proposed petrochemical facility on at least a weekly basis.

 

13 comments

  1. THANK goodness for the county and school district.

    With the state allowing cyber schools to banqrupt districts and cause school taxdollars to go through the roof, and no sight of it stopping soon considering JIMMY BOY CHRISTIANA accepted over 100thousand from special intrest groups that support that shit, you know he isnt going to step up and fight to help school districts.

    KUDOS to DENNIS YABLONSKY for navigating this and Dr.Matsook for working hard on this.

    We need this to come and the area needs it but we cant afford to be RAPED by them in exchange for it, and if our state REP.JIMMY BOY CHRISTIANA had his way he would give his first born for a donation and a golf trip to SCHELL .

    Anyone in CENTRAL VALLEY or HOPEWELL that votes for this FUCK should be committed…. to bad the guy running against him has no money, thats what AMADIO should of ran for…. FUCK i would of taken SPANIK instead, yeah i said it thats how bad jimmy boy is.. GO ELDER VOGEL you got my vote for the senate honest, decent, trusting. no bells and whistles but steady not a fluke like that kid is , wish i had my vote back on his ass

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  2. It’s about time something comes this way.

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  3. The county will need all the tax break they can get…gonna need it to help support the 600+ horsehead employees that are going to be jobless…

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  4. We need this plant because we need JOBS! Does anyone doubt that?

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  5. vote it out like you do all good things that come to beaver co. We do need this and more lets go

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  6. Surprise! We are being sold out. Candy, boys and girls?

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  7. I undertsand that Shell has agreed to pay 110% of what Horsehead paid last year which is very generous since they were given a free pass but I think the better question is what would they pay if they were required to pay their normal amount going forward with 2,000 to 3,000 employees compared to Horsehead’s 500-600 and I am quite sure their revenue will be many times that of what Horsehead’s is now.

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    • Whoknows: Right you are. It’s tokenism for this Valley Of Suckers. We’re talking BILLIONS here and left grovelling for scraps from the fat cats’ table. Political and short-term greedy local opportunism. They would have built here anyway, without any “incentives” at all. THEN we would have seen a Valley Renaissance. Instead, we have been sold out. Now, just pray your house is not downwind of its toxic emissions (southwest Sewickley beware) or downstream on the Ohio River. Oops.

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  8. We agree, Bill. But Shingas57 and town councils know that this is carefully calculated paying it forward. I guess in 22 years, Shell will pay us back and we’ll be even-Steven.

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  9. EVERYONE should read Bill Buckleys post…he sums up this situation perfectly.
    I am hoping to put my house on the market before this plant fires up and will be moving out of this county.
    BTW, for all you who refuse to listen beyond the political rhetoric, the Shell plant will only employ hundreds (skilled not blue collar workers) after construction. The Medical Center will employ more and they will be quite busy treating all the residents from their illnesses. Wonder why the current cracker plants are built along coastlines and not residential areas? Ask Shell to release their emissions results from these plants. Guess what? They won’t!

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  10. not very bright

    If we don’t offer tax breaks, some other area will. Than we can pat ourselves on the back for fighting the man, and his possible 1000 jobs. Taxes aren’t going to fix beaver county’s problems. Jobs will.

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  11. not very bright

    Lol, I don’t know how how those errors happened. I give.

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  12. Not very bright, Shell is the #1 most profitable company in the WORLD. (Serious fact) If you reallly think the tax breaks are the reason they might put the cracker here then you live up to your name. Isn’t it funny how folks here are waiting for a job to fall in their lap? Why not move to where the jobs are? They are out there, but no one wants to move, why? If Shell does not put the plant here will folks be willing to find their dream elsewhere? I did and it was the best move for me, career and personally.

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