![A rendering shows early plans for two new leading-edge Intel processor factories in Licking County, Ohio. Announced on Jan. 21, 2022, the $20 billion project spans nearly 1,000 acres and is the largest single private-sector investment in Ohio history. Construction is expected to begin in late 2022, with production coming online at the end of 2025. [Intel Corporation]](https://npr.brightspotcdn.com/dims4/default/7387cfe/2147483647/strip/true/crop/5100x3300+0+0/resize/840x544!/format/webp/quality/90/?url=http%3A%2F%2Fnpr-brightspot.s3.amazonaws.com%2Flegacy%2Fimages%2Fnews%2Fnpr%2F2022%2F01%2F1076497644_1498188330.jpg)
Ohio is giving Intel $600 million in a cash grant, $691 million for infrastructure including roads, water, and sewer, and $650 million in a job creation tax credit as part of its deal to build a $20 billion semiconductor chip production facility in Central Ohio.
Ohio’s Department of Development Director Lydia Mihalik explained the state's justification for the magnitude of the deal at a Friday press conference.
“I would say it probably reasons that this is the largest incentive package in Ohio’s history in order to land something of this magnitude," Mahalik said.
As part of the deal, Intel must follow through with its plans to directly employ 3,000 people with an average salary of $135,000 plus benefits, Mihalik said. She added, there's no reason to believe the company won't follow through with that plan, but if it doesn't, the contract is written in a way that some state dollars could be clawed back.
JobsOhio, the state’s nonprofit job development company, says it plans to give Intel $150 million in grants but won’t give more details until final agreements are executed.
The JobsOhio package, said CEO J.P. Nauseef, was based on a projected return in investment.
Zach Schiller of Policy Matters Ohio says the Intel investment could be a good one for Ohio, but he is curious about all of the incentives being offered for which details are yet unknown.
“We haven’t heard Intel ask for anything that it wasn’t given,” Schiller said.
The project will add more children to local schools, he said, which could make housing less affordable for people who already cannot afford homes. It could add other strains to the local economy, Schiller said.
He also notes there is a finite amount of money available for this type of project and Schiller wonders how much the state will help with schools, affordable housing, and other needs once Intel moves in.
Sue Van Woerkom, president of the Columbus Board of Realtors, says the housing inventory is already tight in Columbus, especially for affordable homes.
“Even though it’s not going to open until 2025, there are going to be people who are going to make that happen now and where are they going to live?” she said. “And we have suppliers who are coming in and where are they going to live? And it’s going to be all levels, from people starting right now to the high up executives that will soon be coming. We are behind the eight ball in Central Ohio right now so more needs to be done. We can’t start soon enough.”
There's also a need to address public transportation, says Josh Summer with the Ohio Association of Community Action Agencies.
“So I don’t know what that looks like, if that’s something like a dedicated bus line or even rail systems, we want to make sure people have access to those jobs,” Summer said.
The proposed site of an Intel computer chip plant northeast of Columbus. [Daniel Konik / Statehouse News Bureau]
The rising value of land is a problem for farmers too if they want to continue farming.
“It’s good news if you are on the selling end of that but it’s not so good news for a farmer who would be in close proximity or even out a little further,” said Chris Gibbs, former Shelby County Republican Party chair and a farmer in northwest Ohio. He also heads up the group Rural Voices USA which is focused on bridging the rural-urban divide.
“ As land values rise, it makes it harder for farmers to access land and to purchase land,” Gibbs said.
Brandon Kern with the Ohio Farm Bureau Federation agrees. He says farmers need to be at the table when things like roads are considered because some roundabouts can hinder farm equipment access that is essential for agricultural operations.
Alison Goebel with Greater Ohio Policy Center, a group concerned about sprawl and sustainable growth, says planning and executing good development is crucial.
“This is an opportunity to start planning today so that we are not doing catch-up. They need to start happening yesterday and I think they are,” Goebel said.
Mihalik says the state, local leaders, and other stakeholders will be at the table to determine what infrastructure needs exist and to figure out how best to fund those projects.
Copyright 2022 The Statehouse News Bureau. To see more, visit The Statehouse News Bureau.