Some pertinent points on the new Kansas City Plant, prompted by the Kansas
City Star article:
• Groundbreaking will probably be sometime after March given that final
private financing still has to be found.
• However, groundbreaking for a major new U.S. nuclear weapons production
plant, costing $4.76 billion to build and operate over its first 20 years,
is still likely to occur just before the May 2010 NonProliferation Treaty
Review Conference. It would be nice if the U.S. had some explaining to do at
the UN over that.
• Originally reported construction cost was $500 million. Now we’re up to
• Previously projected tax abatements to be granted by the Kansas City
municipal government were $41 million. Now we’re up to $65 million ($2.6
million/year over 25 years).
• Infrastructure improvements (roads and utilities) enabled by the tax
abatements will benefit the private developers in their other nearby
business ventures, including a planned intermodal,international
transportation hub (part of the so-called “NAFTA Superhighway”).
• Kansas City’s Planned Industrial Expansion Authority (PIEA), enabled by
Missouri state law to fight urban blight, will issue bonds to private
investors. The PIEA declared a producing soy bean field blighted in order to
provide the basis for this (hardly urban blight).
• Through the PIEA, a municipal government (Kansas City, MO) will hold fee
simple to this new federal nuclear weapons production plant (i.e., own it).
The PIEA will grant the private developers a 20-year or more
lease-to-purchase, after which the private developers will own this new
federal nuclear weapons production plant.
• Guaranteed subleases to the National Nuclear Security Administration
(NNSA) via the General Services Administration (GSA) effectively guarantee
the profits of the private developers and their ability to pay the bonds
off. “Coincidentally,” one of the two private development partners happened
to own the land that the new Plant is to be built upon before GSA/NNSA
• GSA/NNSA put out a solicitation for bids to private developers a good
month or so before they issued public notice of an environmental assessment
for the new Kansas City Plant under the National Environmental Policy Act.
Nevertheless, the two agencies have always denied any predetermination.
link to interview with Jay Coghlan:
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