Wednesday, April 09, 2008

Loot for Luther Forest . . .

The new state budget is passed, and another $46 million is being spent on site improvements in Luther Forest near Saratoga, to prepare it for the AMD chip manufacturing plant.
At this point in time it's full bore ahead ... with the expectation that sometime around next January they'll be able to start construction," said Malta Town Supervisor Paul Sausville. About $32 million in bids for a 5 1/2-mile road project for the industrial park were let this week, while the county is building a water system that will also serve the site and a sewage treatment plant is being upgraded, he said.
$32 million seems rather steep for a 5 1/2 mile road, don't 'cha think? (I guess it pays to do business in the Town of Malta.)

What is more interesting is (1) AMD's precarious financial condition (it's currently laying off 10% of its workforce) and (2) the fact that AMD has yet to commit to the Luther Forest project! That's right. . . . AMD is still uncommitted and could pull out of the whole deal. According to a spokesman:
"We have not yet committed to the plan. We have until July 2009 to commit."
All this spending for a particular company - one in financial trouble - with no commitment? Hardly comforting words. One has to wonder, is this spending of state taxpayer money really about creating sustainable jobs . . . or is it a way for well connected contractors to get rich?

2 comments:

Anonymous said...

Hey strike -

Yes AMD laid off 10%, but that was following big scalebacks by Intel too. Its a unique industry that sometimes shrinks as it grows, however counter-intuitive that may seem.

newhartfordpeople said...

So much for their "shovel ready" site huh? And AMD hasn't even committed to the site? What was all the hub-bub about them building there when they haven't even committed to it.