posted February 8, 2007
Recently, it has been good news that Chattanooga is a finalist for a new Toyota plant. While everyone has been counting their chickens before they hatch, a few things just don’t add up.
To do an objective analysis of Chattanooga’s chances I have done a Google search and researched over 100 articles. After reading these articles I am making a prediction, the new Toyota plant will be located in Marion, Ark. The only thing left to do is to tell you why.
Almost all of the articles mention Marion, Ark., as the front-runner from the start. It was the runner-up the last time Toyota built a truck plant which ended up in San Antonio, Tex.
On Jan. 31, 2007, Michael Randle, editor and publisher of Southern Business and Development, said, “We believe…that Marion will be the site and Hino will operate a truck line at the plant — that it will be a Toyota and Hino facility.”
Another article in Manufacturing.net by Amy Radishofski said that Hino has already built a parts plant in Marion and that five community colleges have received $11 million in grants that could aid in training for auto manufacturing jobs. Marion has also received a $5 million federal grant for training local workers.
Our local leaders have pulled in the big guns to counter Marion’s advantages. In an article in the Times/Free Press by Mike Pare entitled, “Toyota Contenders All Say They Have the Edge,” U.S. Rep. Zach Wamp said that he and Chattanooga economic developers visited Toyota Motor officials in California to pitch…….Enterprise South. He went on to say, “Before that, Enterprise South was not in the top 10. We left in the top three.”
This visit was in mid-2006 - before the last congressional election. At the time, it was probable that Wamp might end up the chairman of the appropriations committee. He carried a lot of weight and pushed Chattanooga up the list. This is proper and appropriate, but since Chattanooga and Enterprise South are well known as a possible site for an automotive plant (remember the Kia deal), it was not even in the top 10 without this additional political pressure. It did not go up the list only on its own merits.
An article from the Japanese newspaper, Mainischi Daily News, reported something that has not been printed or reported by local, state or national media. That is the fact that the law firm of Howard Baker, former senator and ambassador to Japan, had been contracted by local officials to lobby the Japanese for the plant. Obviously and appropriately, all political stops have been pulled. It is sad I have to read stuff like this in a Japanese newspaper.
The Mainischi Daily News article also said that the same Michael Randle of Southern Business and Development mentioned earlier had said that he has correctly predicted most auto assembly plant sites, starting with BMW in South Carolina. He said that he guesses Toyota will pick Marion, Ark., this time. Randle went on to say that no Japanese auto company has ever located a new plant on a redeveloped, former industrial site, also known as a brownfield location. He said and I quote, “It’s not a slam on Chattanooga. I just don’t think it’s going to be an automotive plant.”
As you know, County Mayor Claude Ramsey always said that the old TNT site was has been Ok’ed environmentally but this article also quoted him as saying that, “We even have insurance if something is found.” Obviously local officials are still worried about environmental issues with Enterprise South if they have purchased insurance.
The most devastating information for Chattanooga’s chances came from the official Toyota spokesman himself, Bob Sieger, who said that in two decades since the company started building plants in the U.S., all of them have been on “greenfield” sites, land that was either agricultural or undeveloped. He said and I quote, “Whether a site is a greenfield or brownfield is something we look at. It is a factor, but by no means is it an absolute prerequisite for a decision.” I think you can read between the lines.
The last factor has to do with state politics. Marion, Ark., is only 12 miles from downtown Memphis. According to the Commercial Appeal in an article entitled, "Memphis, Tenn. Silent as Nearby Marion, Ark. Vies for Toyota Plant" the Memphis area and the state of Tennessee would greatly benefit from locating the plant in Marion. A study was done when Marion was up for the plant that went to San Antonio of the economic impact for Memphis. It includes $137 million in payroll from Toyota-related jobs, $6 million in tax revenues annually, and 3700 jobs. Not to mention the state taxes that would be realized. Although the Memphis city officials are not publicly pulling for the Marion site, they have to be hoping and working secretly that it happens.
We also have to consider that Hamilton County is a Republican stronghold. Most of our state representatives are Republican. Phil Bredesen is a Democrat. Marion is only 12 miles from downtown Memphis. Memphis is a Democrat stronghold with Covington, home of House speaker Jimmy Naifeh, only 40 miles away. For Chattanooga to get the plant, Tennessee would have to give up $300-400 million in tax incentives. For Marion and Memphis the state wouldn’t have to give up any tax incentives. Arkansas will do that for us. Since Bredesen is a former businessman he is probably thinking, why buy the cow when you can get the milk for free.
Let’s recap for a second. 1. We have most industry magazines choosing Marion, Ark. 2. The state of Arkansas and the federal government have put in almost $20 million dollar in training facilities in the Marion area 3. It took massive political pressure from two political heavyweights, Howard Baker and Zach Wamp, to put us “in the top 10.” 4. Enterprise South is considered a “brownfield” site when no Japanese car company has EVER put a plant on anything other than a “greenfield” site. 5. Local officials had to buy environmental insurance to make sure we were in the running. 6. Memphis and Tennessee will benefit without giving away hundreds of millions of tax incentives. (Why buy the cow…) 7. Hamilton County being a Republican stronghold “competing” against Memphis which is a Democratic stronghold, with a Democratic governor, and a Democratic House whose speaker lives in Covington 40 miles away.
All of this stuff about education and quality of life has nothing to do with these business decisions. If education were important, why are industrial plants being located in Third World countries and the rural South? Our area is attractive and we have a nice downtown, but Memphis does also, along with the Beale Street. Marion, Ark., and Memphis have a less educated population than Chattanooga, yet it is the favorite. Sober businessmen don’t make decisions based on frivolous attributes. Local officials tout this stuff to convince the taxpayer to spend more money on economic losers and to hide their poor job-creating performance.
It could not be more obvious that Chattanooga is not going to get the Toyota plant this time and because of its brownfield, environmental problems, probably never will. It is time for a plan B and that is filling Enterprise South will small to medium size businesses and quite wasting our hopes and our time on fantasies.
Tim Price
jat-55@msn.com
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One added supporting fact is that the EPA has granted an exception for ground control pollutents for the county in Arkansas being considered. Very rare for this to happen.
They were put under this in 2003 I believe. Never have been able to get out from under the stigma before now.
Richard Elrod
rlelrod@comcast.net
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Thank you, Mr. Price, for the information concerning the Toyota Plant location. I applaud the messenger for his in-depth research concerning this issue.
Sometimes the truth hurts and this is one of those times. I had hopes for our area, but it seems that the Japanese and Razorbacks have been cutting deals while leading Chattanooga down the well-known path.
Voting for Phil Bredesen sure didn't help us with school funds, and now this. Shame on you, Phil.
Chuck Mehan
cbm2006@comcast.net
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