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Economic benefits of landfill outlined for HDA Print
Written by Dee Holzel   
Friday, November 13 2009 07:39

Kathleen WINNEMUCCA — The environmental impacts of the proposed Jungo Rd. landfill have been debated at length, but almost lost in the discussion have been the economic benefits.  This was topic before the Humboldt County Development Authority on Tuesday (Nov. 10). 

The presentation was delivered by Kathleen Conaboy and Jim Endres (shown), of McDonald-Carano-Wilson – the legal firm representing Jungo Land & Investments.  Endres explained they were hired to “be the voice in the community while (Recology) works through the (permitting) process.”  The figures given to the HDA were developed with the assistance of Lindsay Anderson, of the Nevada Commission on Economic Development. The model used codes from the North American Industrial Classification System, which is primarily used for manufacturing and classifies waste management as an administrative service.

EMPLOYMENT:  The most direct benefit is the estimated $1.4 million in wages Recology anticipates it will pay to employees in the first year.  The model used to compute the economic benefits does not include health insurance, but the company does provide a health-benefits package, Conaboy noted. In response to a question, Conaboy said the average salary is $24/hr and there will be two management positions at the site. 

In addition, the model anticipates four other jobs could be created among suppliers serving the landfill and five jobs could be created in retail as a result of additional spending.  Between the landfill and the jobs created as a result of it, the model estimates $3.4 million in wages could be generated during the first year.

CONSTRUCTION:  That figure, however, does not include the benefits that come from constructing the site.  The model anticipates 104 jobs could be created during the construction phase.  The figure includes the employees hired for the actual construction, the jobs created among the suppliers, and the jobs created among the retailers as a result of the extra spending.  The model estimates $4.1 million in wages could be paid during construction – assuming the wages paid stay in Nevada.  The total economic impact from construction, including wages paid and supplies purchased, could reach $34 million.

BENEFITS TO GOVERNMENT:  Local government could see the tax base grow by an estimated $1.7 million from property and sales tax in the first year of operations.  The state may see an estimated $800,000 in the first year.

ADDITIONAL IMPACTS:  Conaboy noted there are certain positive impacts that are not taken into consideration by the model.  For example, if a person gets employment as a result of the landfill (either directly or indirectly), and that individual was previously unemployed, the decrease in unemployment benefits and social service needs are not included in the model.  However, that is taken into consideration by community and government.

 Ed note – In addition the company will pay a host fee based on tonnage.  That fee will be negotiated at a later date.

 

 

 
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