[Originally published in the OTHER paper, Eugene, Oregon in November, 1996. ]

Hyundai - your "good neighbor"

by Wanda Ballentine

Last summer, Hyundai's Dong Soo Shyn assured us the multinational corporation just wanted to be a "good neighbor" and "obey our laws."

In the PR world, pronouncement passes for fact.

In the real world, Hyundai has done nothing BUT ignore citizens' concerns and use its considerable economic clout to bend our laws. Eugeneans should be up in arms at the mistreatment of its laws, its citizens and its habitat.

Residents who protested the siting of the large toxic-using factory in the fragile wetlands felt at least some relief when the Army Corps of Engineers (Corps) reduced the plant's area from 34 to 10 acres by denying Phase III of the project. They were further heartened when the Phase III area was designated for "protection and restoration" in the proposed revisions of the West Eugene Wetlands Plan.

The Plan went through a public process that included citizen review and testimony. The public comment period closed on April 2. The plan was approved by the Eugene Planning Commission and sent to the City Council and Lane County Commissioners, which were to review it in October.

On August 26, Hyundai submitted its objections to the Plan to Mayor Bascom. She did not share them with the Council until early October, when the Plan was pulled from the Council and Commission agendas and remanded to their respective Planning Commissions.

Question -- would the plan have been sent back if citizens had submitted new information after the deadline indicating major harm was being done to the wetlands???

Acting as if Phase III had never been denied, Hyundai claims the Phase III area should not be restored and protected because it is already damaged -- by the Hyundai development -- though during the permitting process it insisted construction would NOT damage wetlands. Hyundai claims that Phase III is essential to the project "as consistently stated."

If Hyundai "consistently stated" this to the Corps, Department of Environmental Quality (DEQ) and Division of State Lands during the permitting process, it changed its tune when it became apparent that concern over the size and impact of the project might require an Environmental Impact Study (EIS).

At that point, Hyundai decided Phase III was not necessary, and the permit was granted on that basis. If the whole project were to have been permitted, an EIS would have been required. Chopping an area into smaller parcels to avoid doing an EIS is a maneuver called "segmentation;" it's illegal, and it's what Hyundai is now attempting.

Not satisfied with ignoring the Phase III decision, Hyundai next notified DEQ that it can't meet the water quality requirements of its permit.

Hyundai's solution -
What DEQ should do is change the permit

The company, which insisted on starting construction at the height of the rainy season, opted for the zero-discharge requirement rather than a more realistic measure because the latter would, again, have entailed an EIS. Because Hyundai agreed to maintain existent water quality, DEQ decided an EIS was unnecessary.

If Hyundai cannot meet the standards it agreed to, the DEQ should issue a stop-work order and require a complete analysis of the environmental impacts

The DEQ has already fined Hyundai $14,000 for three serious violations (citizen monitors found daily violations); LRAPA fined it for violation of air pollution laws, and the Division of State Lands, though failing to issue a citation, acknowledged that Hyundai had violated its permit by allowing excavated dirt to be dumped on the wetlands. Now Hyundai wants the standards lowered so it can abuse the environment without consequences.

A refresher on Hyundai's other observations
of our laws and concerns

Noise variance -- Hyundai insists construction must continue around the clock, that it is an "economic hardship" on this $70 billion company not to do so. It would be economically beneficial for any business to build quickly -- yet no other companies request variances.

Residents who appealed the variance spoke movingly of the effects of the 24-hour-a-day cacophony and provided an abundance of scientific information regarding the effects of nocturnal noise on humans and wildlife. Hyundai and City officials were not only totally unmoved, Hyundai's lawyers insulted testifiers and attempted to discredit them or bar them from speaking. The City's hearing officer questioned speakers minutely, but did not question the assertion that Hyundai's economic needs and the purported economic benefits it will bring outweigh any distress or harm to people or wildlife.

Air quality -- LRAPA instituted a temporary rule to govern semiconductor emissions not covered by current laws but just as toxic and dangerous. The rule is up for renewal on November 30, and Hyundai is agitating to have it dropped.

Power contract -- Hyundai refused to sign a power contract with EWEB, objecting to the requirement of a fidelity bond assuring payment of the infrastructure costs because Hyundai Semiconductors, Inc, the company Eugene is doing business with, has no assets of its own. Hyundai also objected to the inclusion of federal equal opportunity labor requirements in the contract.

Jobs --  "Jobs" is the reason Eugene was supposed to welcome Hyundai with open arms. Initially, it promised 800-1000 jobs, the Register-Guard consistently reporting 1000. When the company announced a reduction in the number of jobs because of automation, there was no complaint from the City, the Chamber of Commerce, the labor council, or the RG, which continued to use the 1000 figure. The number is now 700. At an estimated $39 million incentive package, that's over $55,000/job. Hyundai hired a German design firm, an out-of-town general contractor, will purchase its equipment elsewhere, and the profits will return to Korea.

Labor relations -- Unions shut down Hyundai operations three times this past year because Hyundai hired non-union companies. In October, Professional Service Industries filed suit against the company for breach of contract, alleging that Hyundai has failed to pay $575,219 owing since August.

Traffic --  Hyundai has disobeyed rules regarding road blockage, resulting in traffic jams, long delays, and accidents.

 

A recap of what this community is giving Hyundai

An estimated $39 million subsidy package including:

$ Three-year property tax abatement

$ $23 million at current value, $28.7 when adjusted  for inflation. By the time Hyundai starts paying taxes at the normal rate its assessed value will have plummeted due to rapid depreciation

$ $5 million in state training grants

$ State business energy tax credits up to $500,000

$ $3.2 million for roads from County Road Funds  (state funds and county levies will also be required)

$ Wastewater treatment at 1/3 normal cost, an estimated $12 million giveaway

$ Rental of a dead end street for employee parking for $779/year; usual cost -- $10,090

Unknowns:

$ Corporate income tax credits

$ Research and development tax credit

$ State pollution control tax credit

$ Energy efficiency incentive from EWEB

$ Cost of extra police, fire, schools and related services

$ Cost in delays to other businesses seeking permits because City has made Hyundai a priority

Oregon corporations automatically receive huge saving due to there being no sales tax. Hyundai's tax break may also represent subsidized competition for employees -- which adversely affects other businesses.

Hyundai Files

©Wanda Ballentine, 1996