[Originally published in the OTHER paper, Eugene, Oregon in July, 1995.]

Give credit where credit is due. The proposed 1.3 billion, 210-acre Hyundai computer chip plant has started something. Within a month after the announcement of the project, two citizens' groups with concerns about the project formed: Citizens for Public Accountability (CPA), which charged that the public had been left out of the planning process and called for public disclosure on the impacts on the community, and a second group, which announced it would challenge the project on the grounds of wetland conservation.

The city was then treated to two of the largest public forums in Eugene history, and last week the City Council not only reversed its decision not to hold a public hearing on the issue, but voted in rare unanimity to do so. Finally, the Planning Commission announced it would initiate an 18-month "growth management study" to involve the public in an examination of the city's growth policies.

CPA and its forum were largely viewed as anti-Hyundai despite statements by its spokespeople that its intent, after the city declined to hold a hearing, was to provide a forum where people could voice the many questions being raised about what is projected to be the largest industry in the city. The announcement of the second forum, scheduled for the following evening, was made the day after CPA's announcement. Sponsored by the League of Women Voters (LWV), evidently at the urging of Mayor Bascom, it featured 13 city, state and county officials bound by their jobs, if nothing else, to support the project.

A now much-quoted statement by Eugene resident Andrew Ross at the CPA forum voiced a general feeling about the public process. "There are two stages in the decision-making process," he observed, "too early to tell, and too late to stop. We're just speed bumps on someone else's idea of the road to progress." Ross asked how many of the overflow crowd had not heard of the Hyundai project prior to the newspaper announcement in late May. A forest of hands went up.

The large turn-out at both forums amply demonstrated the wide public interest in airing the issues. Many at the CPA forum had to struggle to hear the proceedings via loudspeakers, while a second conference room had to be opened up to accommodate the crowd at the LWV forum in the Eugene Conference Center.

Certainly the CPA forum was the more lively of the two. Panelist Paul Engelking, University of Oregon chemistry professor and former consultant to Intel corporation, another computer chip manufacturer, donned protective clothing to demonstrate etching glass with hydrochloric acid, one of the chemicals used in the process, which prompted a Hyundai supporter to accuse him of scare tactics. Engelking also diagrammed the chip production process, noting that Hyundai has a choice between "wet" and "dry" processes, the latter being far less damaging to workers and the environment. The following evening Steve Greenwood, regional director of the Dept. of Environmental Quality, asserted that Hyundai would be using the dry method, only to be contradicted by Hyundai's engineer, Richard Wang, who claimed the dry method "doesn't work." Wang again contradicted Greenwood when the latter stated that Hyundai would not be using arsine gas, an extremely lethal substance. (According to Silicon Valley's Toxic Coalition, one cylinder of arsine gas released in the plant could kill everyone in it; one released in a transport accident could be lethal for several square blocks.)

Dr. Mary O'Brien, staff scientist for the Environmental Research Foundation and former director of the Northwest Coalition Against Pesticides, informed the audience that there are less toxic alternatives to arsine, and that it is just one of a wide variety of chemicals designated as "extreme poisons" used by the chip industry, some of which are toxic at very low levels. Many are carcinogens; others cause birth defects, damage to the liver, kidney and skin and to the central nervous, immune, respiratory, and reproductive systems. Many health effects are cumulative, she said, and will not show up for decades.

Despite his lack of knowledge about the processes Hyundai plans to use, Greenwood asserted repeatedly that existing environmental regulations will be sufficient to protect workers and the environment. Metro Partnership director John Lively, stated at the CPA forum (he had declined to be a panelist, but was in the audience) that Hyundai was still surveying other chip plants to determine what system it would use. As they intend to break ground in July, it is difficult to believe the system has not been determined.

O'Brien claimed that the regulations can't possibly be sufficient because the industry changes so rapidly. Permits are issued for categories rather than specific chemicals because new chemicals are constantly being developed. The Toxics Release Inventory, which requires industries to report on their toxic emissions, covers only 300 out of some 70,000 chemicals, and the limits placed on then are not based on their toxicity but on what the industry thinks it can limit. The public has a right to know what chemicals Hyundai will use and how they will deal with their transportation to and from the plant, their storage, containment, use, recovery and disposal, she said.

The fluoride in hydrofluoric acid, another severely toxic substance, can kill microorganisms that process sewage in the sewage treatment plant, which could result in raw sewage discharging into the river. It also combines with heavy metals and can carry them in sediments to the river. The wet etch process will send fluoride down the drain; dry won't.

Hyundai estimates it will emit half million pounds of volatile organic compounds (VOCs) per year -- equaling Weyerhaeuser's emissions, but much more toxic, and, unlike Weyerhaeuser's, odorless. They are neurotoxins, which affect the brain cells -- but you won't notice the effect for 20-30 years.

The toxics involved are of double concern because of the plant's location in the wetlands. Art Farley, newly appointed Planning Commissioner, noted that while the Metro Plan designates the area for "light industry" and lists semi-conductor plants in that category, it defines light industry as releasing little effluent and having small energy demands. The plant will produce sewage equivalent to a town of 5000, and wetlands are the worst place to put any operation using heavy metals, which will siphon into the aquifers. The County's own booklet on wetlands in the Willow creek area notes that they are downhill, downstream, and that one toxic spill could kill the rare plants growing there.

Hyundai is proposing to rebuild 11 acres on the site and to mitigate 23 acres elsewhere via the county mitigation program. Steve Gordon, who directs the program, is delighted about the success of their projects, but Tom Pringle, of Emerald Wetland Consulting, disputes this. "Mitigation is an experimental concept that has become more controversial across the country as time goes on. Results have been very uneven." The more disturbed the site, the more difficult it is to restore, and the Hyundai site has had considerable disturbance, but Pringle asserts that even the areas in poor condition are better than anything achieved to date locally with mitigation. "The sites in West Eugene are wet, they are green, they are open spaces, but the biological wetlands character is open to question."

And, Pringle's fact sheet noted, mitigation is a fly-now, pay-later plan. The wetland is filled, and the factory built, with a promise of no-net-loss replacement wetland. If it doesn't happen, there's no turning back. Successful mitigation should come first, then the factory.

John Gever rose to ask, "Whatever happens, we aren't going to have better air, water, traffic and livability. So what are the benefits? The only one they've come up with is jobs. Are we going to get those? Will they be worth it?"

The projected number of jobs is generally stated to be "1000" or "800-to-1000," but the Memo of Mutual Understanding (MOMU) between Hyundai and the various government and service groups only stipulates 800. But Lively made the surprising statement at the CPA forum that Phase I would produce 450 jobs, with 2,500 projected in Phase III.

Mr. Dong-Soo Shyn, Hyundai's man on the spot at the LWV forum, was mum on the wage scale, saying only that the company was in the process of conducting wage surveys. Comparable jobs in the computer industry pay between $6.50-$9.00/hr., $14,000-20,000/yr. These aren't family wage jobs. A family of three would still require food stamps. ElJay, which just closed down, was a union shop and paid $16/hr. Lane county's average wage is $12.38/hr. Lynn Feekin of the Labor Education Research Council asserted that good economic development must be based on good wages and called the "better than nothing" argument "job blackmail."

Though the legal requirement to hire a certain number of locals has been declared unconstitutional, Shyn assured the audience that the company intends to hire locally as long as applicants are qualified. Under the MOMU, LCC will provide training designated by Hyundai, and the state will fund it. However, Eugene's current unemployment rate is 4.5%, making it fairly certain that many applicants will come from outside the area, which raises other questions, particularly in light of the projected average wage.

Homelessness in the area has been steadily rising and increasingly includes the "working poor," those whose minimum pay wages are insufficient to obtain housing. Some of these people may be qualified or retrained to work for Hyundai, but if the pay is only slightly higher than their current wages, and if more people move in seeking employment, there will be an even greater strain on the housing situation and on the demand for public services and infrastructure. The homeless working poor will still be with us.

So far, Hyundai is not hiring locally -- it has hired a German design firm, is hiring an out-of-town general contractor, will purchase its equipment elsewhere, and the profits will return to Korea. Even the Business News, enthusing about the spin-off business Hyundai will produce, noted in its 5/29 issue that the company may bring its own suppliers.

CPA panelist Sam Dominy, Lane County Labor Council President and former State Senator, pointed out that the $27 million tax abatement is the biggest in our history, amounting to $27,000 per job -- if we get 1000 jobs (total estimated subsidies of 32 million = $32,000/job). A study by the Oregon Dept. of Economic Development found that tax abatements are not only not a good way to create jobs, they're a drain on the state's resources.

"What are the benefits, the workers' rights?" Dominy asked. If Hyundai falls short of its commitment, if the plant closes in X number of years, what's our recourse? "We need safeguards that we get benefits," Dominy insisted, "and if not, there should be consequences ... If they fail to deliver, they should pay back subsidies with interest." Former U.S. Senator Jim Weaver, another panelist, advised, "Give them breaks after they've proved to be good neighbors."

Shyn stated that employees would receive full health benefits and day care. When questioned about Hyundai's reputation as having the worst labor relations in Korea, he responded that Hyundai Electronics America is an independent branch of the huge Hyundai conglomerate, and it has not had labor problems. He further asserted that recent labor difficulties stemmed from conflicts between two labor groups, not labor and management, noting that North Korean communists target labor for the purpose of fomenting unrest. Unasked was the question as to why, if labor conditions are satisfactory, this ploy would be successful.

Is Hyundai here for the long haul? The market is very competitive and highly volatile, and Hyundai admits that the technology changes rapidly, and plants become obsolete quickly. Even the welcoming editorial in The Business News, noted that market competitiveness could drive wages down and market instability could drive it out.

Asked about rumors that Hyundai was closing a plant in Ft. Collins, CO, and offering workers jobs in Eugene, Shyn confirmed the former, but said workers would be offered jobs in their new Boulder plant. Ft. Collins had not been informed of this, and the next day, Hyundai headquarters called Shyn's remarks "totally inaccurate;" however, it was admitted that future closure was a possibility, and that some workers might be offered a transfer to Eugene. Hyundai closed its year-old plant in Santa Clara, CA, to move to Mexico and cheaper labor. It is not cheap labor that draws it to Eugene; it is cheap water and electricity.

During Phase I, the 600,000 sq. ft. plant (about the size of the Sony plant), will require 30 megawatts of power, 10% of the 300 MW the whole city uses, and 2.5 million gallons of water a day, 7% of current usage -- enough to serve about 7,500 families. Phase III will bring the usage to 110 MW, and 9.9 million gallons of water a day, 25% of current capacity, about equal to the demands of a town of 40,000 people.

Clearly EWEB will have to accelerate plans to increase its capacity. Who will pay? EWEB customers are already subsidizing Sony. An EWEB fact sheet states that "Hyundai shall not subsidize other EWEB customers, and vice versa." However, the MOMU, signed by director Bergman without being reviewed by the EWEB board, only says that Hyundai will not subsidize other customers.

EWEB's plans for eventual expansion must now be accelerated. The cheapest, natural gas turbine generators, will cost about $60 million, not including costs of the distribution infrastructure, new high voltage power lines and transformer stations and upgrades of the existing system that might be required. This new energy will come at a higher rate than consumers are currently paying. Will Hyundai be charged for the new capacity, or will the cost be mixed with the present low rates, bringing citizen rates up, Hyundai's down?

Eben Fodor, of Friends of Eugene, is urging EWEB to do an analysis of Hyundai's impacts on water and electric bills over the next 5-10 years, including the cost of adding new capacity and the cost of maintaining water quality vis-a-vis its effluent, and a comparison with costs if Hyundai does not settle here.

EWEB, known for it's overall emphasis on conservation, will be working with Hyundai on both energy conservation and the possibility of recycling some portion of the water used by the plant. The MOMU guarantees incentives to Hyundai for investment in energy efficient equipment. According to the Eugene Weekly, Weyerhaeuser's energy incentive amounted to $1 million, and under the MOMU, the state will provide business energy tax credits up to 35% of the cost of qualified energy conservation equipment up to $500,000.

Fodor is also concerned about other infrastructure costs, asserting that tax subsidies are just the tip of the iceberg; there will be additional costs for roads, police and fire services and schools for the population influx. The plant is projected to produce as much sewage as a town of 5000, and user fees are estimated at about $1.8 million.

The 6/22 Eugene Weekly reported that Hyundai will pay $3.5 million in systems development charges (SDCs), but a city fact sheet gave the amount as $1.5 million, including $911,00 for the regional sanitary system, $140,000 for the city storm water system, and $468,000 for transportation -- yet the MOMU states that the city of Eugene will provide "transportation and non-EWEB-related infrastructure improvements needed, at no cost to Hyundai," as well as "a financing plan for payment of the Systems Development Charges," if Hyundai requests it.

Roads will be paid for by the county out of the County Road Funds earmarked to support economic development goals, but will also involve state funds and county levies. Willow Creek Rd. will be the primary access to the plant, 18th, the secondary access, and both will undergo widening or improvements in preparation for projected increase in traffic that is worrying the area's residents.

The city states it will "work closely with LTD and Hyundai to encourage alternative modes of transportation." Lively maintains that infrastructure costs should not be charged to Hyundai. The W. Eugene Parkway and improvements to Beltline, which are funded by ODOT, were already in the works. However, the Eugene Weekly, reported that Willow Creek projects have been accelerated, while work on other streets waits.

Environmental activist, Spruce Houser challenged the anti-Hyundai element with a very pointed question: "What right do we have to reject this plant when most of the people in this room use computers?" It's a dilemma many are struggling with, many of whom had not realized the extent of the potential health and environmental damage involved with their technological buddies.

But, as directly or indirectly, we are all computer-dependent, the response was that the industry must be challenged to clean itself up as quickly as possible, whether here or elsewhere. Many improvements have been made in the industry, particularly since Silicon Valley residents woke up to their situation (the highest birth defect rate in the country, for example) and started demanding stringent regulations. An organization called Sematech now investigates and promotes improved industry technology.

Hyundai is starting from scratch here; it does not have to retool any equipment. It has the opportunity to start with the leading edge technology. But -- it will be more expensive -- leading back to the consumer. Many are willing to pay a higher price for high quality performance. Many, no doubt, would also be willing to pay a higher price to reduce health and environmental damage, even in someone else's community. But it will take a lot of consciousness-raising.

That's the aim of the covenant proposed by CPA between Hyundai and the citizens of Eugene. The MOMU states that "the public policy of the State, Eugene, and the County is to encourage, develop and expand business, industry and commerce in order to reduce unemployment and to improve the public health, safety, welfare and future prosperity of the citizens ..." Mr. Shyn declares that Hyundai aims to be a good corporate citizen. Presumably that entails meeting the above goals and addressing the many questions raised as to how they will be achieved.

The draft covenant requests adoption of San Jose's Toxic Gas Model Ordinance, and asks Hyundai to agree to the environmental improvements developed by Sematech, with the goal of moving as quickly as possible toward zero discharge. A fact-finding mission to Silicon Valley on the 29th is expected to come up with some other ideas (see "Just the facts, ma'am"). While the official stance is that existing regulations are sufficient, Fred Hansen, now second in command at the EPA, encouraged the development of local regulations in his visit to Eugene on the 27th.

Elected officials have not voted on subsidies or assessed whether Hyundai's plans are good for Eugene, and the project, per the MOMU, is on the fast track, which Mr. Shyn said is necessary because "we are a profit-making organization," and the sooner the plant is built, the sooner it will be producing profits. Metropolitan Partnership, which is promoting Hyundai's plans, is not a public agency and is not accountable to the voters.

No one yet knows how big the subsidy is, but it is currently estimated at $32 million. City and state officials did not do a cost/benefit analysis of the impact, and the decisions on tax breaks are being made outside of the public budgeting process. For instance, it is unknown Hyundai will receive under the state's pollution control tax-credit program -- other companies have gotten up to $16 million to fund pollution control equipment required by law. The MOMU also provides for an energy tax credit and a research and development tax credit.

Hyundai's property tax exemption will not increase anyone's taxes, but the fact that it is exempt means they won't be lowered either. The 1994 total assessed property value per $1000 in Eugene was $5,818,886 (for a total of $5,818,886,149). To determine what Hyundai's share would be if it paid taxes like everyone else, divide $27 million by $5,818,886 -- Hyundai's share would be $4.64 per $1,000 assessed property value for that three-year period.

Thus, the owner of a $100,000 home would pay $464 less ($155/yr.) if Hyundai paid its fair share. If the subsidy is extended to five years as proposed, the savings would be $773. (This is assuming unchanged assessment needs and inflation.)

The Register-Guard's Joe Kidd observed that "only one new bit of information" came out of the CPA forum. That may be true, but it certainly wasn't due to a lack of questions asked.