MOHAVE COUNTY – Legislative proposals to provide tax credits that might help Texas-based Nacero LLC commit to build and operate a $6-billion zero-sulfur gas processing facility in Mohave County were not heard at the state capitol as had been expected. The Bullhead City Council passed a resolution in support of the house and senate measures on Feb. 15.
Kingman Mayor Jen Miles and Dist. 1 Mohave County Sup. Travis Lingenfelter expected to offer testimony on the legislation the next day. Miles, however said there was no hearing because of opposition mounted by the Sierra Club and others.
Miles said the company and its supporters decided to regroup. “I just don’t think the legislation is going to be the way to get there from here.”
A new approach could instead involve designation of a free trade zone where the plant could operate while enjoying incentive benefit.
“I think the free trade zone is a great way to not have to go before the legislature and sort of arrive at the same result that they were looking for,” Lingenfelter said Wednesday, March 3. “What the free trade zone status would do for this company would essentially give them the same tax treatment in the state as a manufacturer that goes and locates in a free trade zone.”
Lingenfelter said various officials are working on the trade zone behind the scenes and that there’s an effort to schedule a meeting involving a variety of people at various levels of government.
“You have to work with Customs. There’s a whole process that you have to go through. The rules of the foreign trade zone program are very clear,” Lingenfelter said. “It’s going to be a cooperative effort between the business, the county, the city, the state representatives. We’ll work with Gosar. We’ll work with Sinema. We’ll work with Mark Kelly if we have to, to get something done but there are talks going on right now as far as the best way to get from point A to point B. I’ve got confidence that it’s possible. It’s a doable thing.”
Miles and Lingenfelter said they understand that some opposition questions the propriety of the tax incentive, though that most involves environmental concerns. Miles said operation of the facility will help reduce the carbon footprint and offset environmental issues that she said can also be addressed in the permitting and regulatory process.
Company officials have not responded to interview requests, but Miles, Lingenfelter and others say they have shared that some 3,500 people would be involved in construction of a facility that would provide more than 400 high paying jobs to staff the operation.
Miles said she’s been told that the plant would have a $17-billion impact where it locates over a ten-year period. While Nacero is reportedly considering land it owns south of Kingman in the Interstate 40 industrial corridor for the project, Miles and Lingenfelter said it’s also possible that the company might commit closer to the Kingman Airport if a foreign trade zone can be established there.
“Wherever they think it’s in their best interest to locate we’re going to work with them, whether it’s Griffith (I-40) or the Kingman site,” Lingenfelter said.
Dave Hawkins
