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 COB advertised jobs and earnings grossly exaggerated
 submitted information posted to KBC 12/10/05 

PLEASE come to the Klamath County Commissioners office at 10 am on TUESDAY December 13th, 2005 and make pertinent 3 minute comments on the proposal to the commissioners and LET YOUR VOICES BE HEARD. They have stated they will vote on the agreement at this time.

 

  1. In a paid advertisement on page F6 of the August 15, 2004 Herald and News titled "COB: The Rest of the Story" the California Oregon Border (COB) corporation made several declarative statements.

    a.) "COB will provide 30 permanent full time jobs an increase of approximately $2,500,000 in personal earnings in Klamath County".

    COB is now guaranteeing 10 full time jobs by the end of the third year the plant is in operation. These jobs will average 150% of the Klamath County average wage beginning by the fifth year, but shall not be indexed to cost of living increases. In order for these jobs to increase Klamath County personal earnings by $2,500,000 their compensation would have to average well in excess of $250,000 per year.

    Why were the number of jobs and the personal earnings grossly exaggerated?

    b.) "Over the life of the project:

    1. COB’s payroll will pump $222 million in personal earnings into the Klamath County economy.

    2.) The increased personal earnings will in turn lead to increased spending of $181 million in Klamath County."

    Now the only COB guarantee is to provide 10 above average jobs after three years and to invest a minimum of $200 million.

    How will those jobs and investments create the more than $400 million impact promised for the Klamath County economy?

     

  2. COB has agreed to make reasonable, good faith efforts to encourage the hiring of local residents and to purchase supplies and building materials from businesses headquartered in or with branch or other sales facilities located in the City or County. However, this now empty promise explicitly excludes hiring or purchases by COB’s general contractor or other third parties. What jobs will COB fill by hiring locally and what purchases will actually be made by COB in the City or County?
  3. In their proposed resolution "In the matter of sanctioning a long term property tax exemption and the provisions of the COB/Klamath County written agreement" the Board of County Commissioners state: "Whereas, a public meeting was held in Klamath Falls on December 13, 2005, to hear the response of the citizenry to the conditions and terms of the COB/Klamath County written agreement and the long-term property tax exemption"… Why were these resolutions and proposed agreements not made available to the public prior to after the close of the business week Friday December 9th? Why were the proposed agreements and resolution not made available to the media in a timely fashion? Does the Commission actually believe that one business day is adequate time for citizens to formulate an appropriate response to the conditions and terms of the written agreement?
  4. The Klamath County Assessor has stated that the COB plant would pay about $71 million in property taxes in the first 15 years if People’s Energy paid under the same tax structure ( with no "deal" from the commissioners) that other businesses and individuals pay on their property. As it is written, the agreement the County Commissioners will be voting on Tuesday morning, would about halve the true amount that COB should legally owe. Can the tax paying citizens and businesses of Klamath County afford to give this utility a tax break of this magnitude? What could the county do with the additional $30 million that should rightfully be paid to it for using its land and natural resources? What is the value of the county’s water, air, land, liveability and way of life? Who will live with the excess carbon dioxide that has been approved to be discharged into the Basin by this plant- obviously it is the people of the Basin, not People’s Energy or whatever merchant utility may buy it. Should People’s Energy (COB) be asked to pay for what they will use of our natural resources and infrastructure in the way of a full $71 million tax payment to the county over 15 years?
  5. PLEASE come to the Klamath County Commissioners office at 10 am on TUESDAY December 13th, 2005 and make pertinent 3 minute comments on the proposal to the commissioners and LET YOUR VOICES BE HEARD. They have stated they will vote on the agreement at this time.

     

 

 

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