Here are this year’s Deal of the Year award winners, starting with Platinum Winner Empire State Development, for Micron Technology's $100B investment in New York State.
By Anne Cosgrove From the January / February 2023 Issue
Once again, Business Facilities is announcing its annual Deal of the Year awards, including our coverage of top economic development deals of 2022. These impressive projects were selected by our panel of esteemed judges (see below), who reviewed dozens of entries to narrow the winners down to Platinum (new this year), Gold, Silver, and Bronze selections.
As you will see, the judges went big in their selections. Micron Technology, Intel, Chevron Phillips Chemical, and Hyundai Motor Group are investing significant (and, in some cases) record-breaking capital into their projects in New York, Ohio, Texas, and Georgia, respectively. That is great news for the regions that these companies are investing in—a sure way to generate even more jobs in the area to service these companies as they construct their facilities and operate them for decades to come. It is also a sign that businesses believe in the communities they are moving to. Whether or not they were one of our winners this year, all of the entrants’ narratives showcased why a company had decided upon their location when many other choices were available in the site selection.
The deals recognized here include the Business Facilities Impact Awards, given in 18 categories this year to projects that stood out in their respective divisions.
Business Facilities thanks everyone who participated in this annual event, from the economic development groups that submitted their entries to our judges who took the time to evaluate the candidates to the companies that made it all possible.
Platinum Award
Empire State Development: $100 billion investment from Micron Technology for a mammoth semiconductor operation will transform this region in New York State.
Micron Technology, Inc., one of the world’s largest semiconductor companies and the only U.S.-based manufacturer of memory, will build the largest semiconductor fabrication facility in the history of the United States in Clay, NY in Onondaga County. Announced in October 2022, the new megafab will increase domestic supply of leading-edge memory and create nearly 50,000 jobs, including approximately 9,000 Micron jobs with an average annual salary of over $100,000 and over 40,000 community jobs—and create tens of thousands of prevailing wage construction jobs.
Micron will invest the up to $100 billion over the next 20 years to construct a new megafab, with the first phase investment of $20 billion planned by the end of the decade. This represents the largest private investment in New York State history. Micron will design, build and operate the facility in accordance with its sustainability goals. The site is planned to include four 600,000-square-foot cleanrooms, for a total of 2.4 million square feet of cleanroom space.
Site preparation work begins this year, construction will begin in 2024, and production output will ramp in the latter half of this decade, gradually increasing in line with industry demand trends. Locating Micron’s industry-leading DRAM (dynamic random access memory) production in the U.S. brings benefits for its customers, enabling them to build their innovative products and solutions using a more resilient, secure and geographically diverse supply chain.
“I am grateful to President Biden and his Administration for making the CHIPS and Science Act a priority, to Senator Schumer and a bipartisan coalition in Congress for passing the legislation, and to Governor Hochul and County Executive McMahon for the local and state partnerships that made this investment possible. Micron will leverage the diverse, highly educated and skilled talent in New York as we look to build our workforce in the Empire State,” said Micron President and CEO Sanjay Mehrotra. “This historic leading-edge memory megafab in Central New York will deliver benefits beyond the semiconductor industry by strengthening U.S. technology leadership as well as economic and national security, driving American innovation and competitiveness for decades to come.”
President Joe Biden and Gov. Hochul visit the Micron Technology site in Clay, NY on October 27, 2022. (Photo: Micron Technology)
New York State negotiated $5.5 billion in incentives through the first in the nation Green CHIPS Incentive Program, passed in 2022, alongside anticipated federal grants and tax credits from the CHIPS and Science Act. To capitalize on the federal bill, New York State crafted the performance-based Green CHIPS incentive program which not only requires at least $3 billion in investment, a 15:1 ROI, and concrete community benefits, it requires adherence to a documented sustainability plan designed to mitigate its greenhouse gas emissions and environmental impact, including utilizing 100% renewable energy, attaining LEED Gold status, and committing to greenhouse gas emission targets and reporting. The Micron project is estimated to result in a total benefit-cost ratio of approximately 20:1, meaning it will directly spend $20 on capital investment, research and development, and salaries and wages for every $1 of support provided by New York State.
As part of the Green CHIPS Incentive Program, Micron and the state negotiated a $500 million Green CHIPS Community Investment Fund. According to the Census Bureau, Syracuse has the second-highest percentage of families in the nation earning less than $10,000 a year. This new fund, administered by Micron in partnership with ESD, in consultation with a local community advisory committee, will be deployed in four areas: Workforce Development, Education, Community Assets and Organizations, and Affordable Housing. Micron and New York State will invest $250 million over the next 20+ years as part of the Fund. Reflecting the company’s broad DEI commitments, Micron’s New York plans include initiatives to address economic disparities and accelerate economic opportunity for underserved communities in the semiconductor industry.
PROJECT IMPACT ESTIMATES
On average, nearly 50,000 jobs will be created in New York State per year.
An estimated annual average of $5.4 billion in real disposable personal income to New York residents.
Construction spending of $31 billion and 5,600 related construction jobs, for the initial 20 years.
Involved in the project: Empire State Development; Onondaga County IDA; CenterState CEO; New York State Power Authority; and National Grid’s economic development department.
PICKING THE WINNERS
The 2022 Economic Development Deal of the Year recognizes the locations and economic development agencies that landed the highest-impact projects announced between July 1, 2021 and the entry deadline of December 15, 2022. For the purposes of this award, an “economic development deal” is defined as:
A project or effort that resulted in the relocation/expansion of a company to a location served by the entering organization;
A project resulting in the expansion of a company already within the territory served by the entering organization;
A project or effort that resulted in the demonstrable retention of a company that would have otherwise left, in whole or in part, the territory served by the entering organization;
Any combination of the above.
Nominees were required to provide official economic impact numbers produced by the RIMS II, IMPLAN, or REMI certified analysis methods, including direct, indirect and induced figures for economic output, job creation and capital investment when available, as well as anticipated new wages; and a narrative about the deal.
2022 Deal Of The Year Award Judges
John Boyd, Jr., Principal, The Boyd Company, Inc.
Linda Burns, Incentives Practices Leader, WDG Consulting, LLC
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