Blog

  • March 14, 2021

Jefferson County Foundation continues to spring forward with momentum in the fight to protect our region’s natural resources. Recent developments prove that we must act with incredible urgency. Now is the time to support these critical actions. Please donate if you can. To update you:

Educate and Empower the Public

The Foundation has filed four more FOIA to state and federal government agencies due to new issues which continue to arise. The FOIA requests are time consuming but necessary as we continue to seek truth in matters that affect our region’s natural resources.

Advocate to Regulators and Leaders

Photo of B170 as of July 15, 2020. Gravel-covered. No enclosure.

The Foundation sent a letter to the West Virginia Department of Environmental Protection (DEP) and the federal Environmental Protection Agency (EPA) regarding Rockwool’s inaccurate and incomplete form submission for Resource Conservation and Recovery Act (RCRA), which requires the company to notify the EPA about how it intends to handle regulated waste at its facility. Rockwool cannot continue to be allowed to submit inconsistent, incomplete and inaccurate information for permits. It’s simply not protective of the environment and will lead to the degradation of our natural resources and the downturn of our economy, health, safety, and welfare. Read the full letter here.

The Foundation sent a letter of complaint to the DEP regarding the lack of proper public notice about the Sheetz Truck Facility Construction Stormwater General Permit (CGP) application. Sheetz, Inc. applied for a new permit on November 20, 2020, and as of the date of our letter, still had not posted the public notice sign as required by this type of permit. A public notice sign is the only method by which the public may become aware of this type of project and be drawn to review the permit and offer comment. Violations of these requirements in the CGP effectively eliminate the involvement of the public in the review process, and remove an avenue for the public to seek relief that was clearly intended by the CGP. We continue to hold the DEP to the requirements of the law and await the response on this matter.

Legal Updates

Constitutionality of the $150M Tax Abatement Deal with WVEDA

The Foundation is appealing the decision of the judge who dismissed the case in the legal challenge of the constitutionality of the $150 Million tax abatement deal the WVEDA made with Rockwool. The case was dismissed because the business court concluded that the legislature intended to allow these types of arrangements. The court did not answer the constitutional question or if the constitution allows these arrangements. We are appealing the decision as constitutionality was the basis of our suit. The constitution requires equity; every entity pays their fair share. For more information about this case and our view of PILOTs in general, read here.

Rockwool Stormwater Construction Permit Hearing Continues this Thursday

The Jefferson County Foundation v. WVDEP and Rockwool case that challenges Rockwool’s Construction Stormwater permit continues this Thursday. The hearing, which started last year, was originally continued into January at the request of the DEP so they could complete the certified record. The DEP was again unable to deliver the certified record in time for the hearing and now the hearing has been rescheduled for this Thursday. For more information on this case, please read here. We will share the link to watch the hearing on our Facebook page closer to the date.

Preparing for Discovery for Rockwool’s Operational Stormwater Permit Appeal

The Foundation continues to work on discovery in the appeal of Rockwool’s operational stormwater permit. The new expert’s assessment is underway. The evidentiary hearing has been set for April 8 and 9. Read the appeal.

Charles Town Votes on Resolution to Abandon the Bond to Pay for the Super Sewer to Rockwool

We are relieved to see that Mayor Trainor listened to the Foundation’s call last November to abandon the bond and require Rockwool to pay for its own sewer through the 5.5-7h process it has relied upon to build the sewer. The Charles Town City Council will vote on Monday, March 15 on a resolution to declare the ordinance moot. The Foundation would like to thank the over 1,500 people who signed the petition in opposition of the bond, and the volunteers from the Super Blue Petition Crew that helped gather these signatures. We collected signatures from well over 30% of the free holders, representing 34% of the adult population of Charles Town, all in eight weeks. As the Blue Petition Project Manager, I would personally like to thank those who gave countless hours of tireless dedication to getting the job done, in an amazingly short amount of time! 

Support the Foundation’s Work

Please check out our 2020 Annual Report. The discovery process is expensive, but necessary in order to submit more evidence into the record. We appreciate your support while we are conducting this process. Please, if you are able, consider a donation to the Foundation Legal Fund. You can donate safely and easily online at the Foundation’s website. You can also help by sending a check to Jefferson County Foundation, Inc., PO Box 460, Ranson, WV 25438.

For those that are contributing, we thank you for your dedication to bring truth to light and to protect our natural resources. We appreciate your continued support!  In the meantime, we’ll keep you posted on how our active cases are going.

  • January 29, 2021

Today, the Jefferson County Foundation filed its response to the West Virginia Economic Development Authority’s (WVEDA) attempt to dismiss the Foundation’s challenge of the WVEDA’s plan to give Rockwool a break from property taxes for up to 10 years and up to $150 million in bonds for Rockwool’s benefit. 

Read the response.

Jefferson County Foundation’s response to Motion to Dismiss from WVEDA and RockwoolDownload

The Foundation brought the WVEDA’s plan to our community’s attention in September of 2019 after surfacing information about it via the Foundation’s FOIA requests.  Our legal action against the WVEDA challenges the constitutionality and legality of the tax exemption that the WVEDA is attempting to provide Rockwool.  

The next step in the proceeding is for the Circuit Court judge in Charleston to rule on the motions to dismiss our challenge that the WVEDA and Rockwool have filed to protect the tax relief scheme. The Foundation has requested oral argument and looks forward to the opportunity to explain to the court why such tax breaks violate the Constitution’s requirement for fair and equal taxation while subsidizing certain companies at the expense of the state’s taxpayers.

About PILOT Agreements

For more information about PILOT (Payment in Lieu of Taxes) agreements, please see here.

  • July 4, 2020

Rebutting the recent article in the Spirit of Jefferson on July 1, 2020

The Spirit of Jefferson published another Rockwool propaganda piece on July 1, 2020, with no apparent regard for the facts and no effort made to cite real sources. Here is our fact-based rebuttal. 

120 vs. 150 Jobs

In May of 2019, Rockwool finalized a deal with the West Virginia Economic Development Authority (WVEDA). This deal was a bond lease agreement in which the WVEDA will take ownership of Rockwool’s land and property for 10 years, which means Rockwool will not need to pay property tax during that time. The WVEDA also promised Rockwool up to $150 million in loans fulfilled with state-backed bonds. When it came time to sign the agreement on the dotted line, Rockwool was willing to commit only to “120 full-time equivalent jobs.” And in another WVEDA deal, this time in November 2019 to obtain state help to pay for its water lines, Rockwool again committed only to “120 full-time equivalent jobs.” That is one-fifth less than the 150 jobs the July 1 article claims.

Downloads

Spirit Rebuttal
Fact SheetDownload
WVEDA Rockwool Bond deal May 2, 2019Download
Deloitte Economic Impact Study – Project ShuttleDownload
Ranson 2017-2018 BudgetDownload

Good paying jobs? Depends on your math.

Figure 1. Source, City of Ranson, West Virginia Proposed Fiscal Year 2017-2018 Budget

The article also repeated a claim of Espinosa, who apparently said that Rockwool would “generate” between $500,000 and $750,000 in taxes to Ranson a year. It would be very interesting to know what taxes these would be. According to Ranson’s 2017-2018 budget, the Revenue for the General Fund has three major sources: the Ad Valorem or property tax, B&O tax, and the 1% sales tax (Figure 1). With the execution of the WVEDA bond lease agreement as discussed above, Rockwool will have no property tax obligation and therefore, Ranson will collect no Ad Valorem Tax from Rockwool. The 1% sales tax is collected on retail sales and since Rockwool will have no appreciable retail sales in Ranson it therefore will not generate revenue for Ranson through the retail sales tax. B&O tax is also assessed on sales. The plant in Ranson is a manufacturing operation and Rockwool’s sales will likely be made from their headquarters in New Jersey. Therefore, Ranson is unlikely to collect any B&O tax from Rockwool either. The remainder of the taxes that round out the revenue for the Ranson General Fund are Hotel-Motel Tax, Fines and Fees, Charges to Other Funds, Garbage Service, Utility Tax, and Wine and Liquor. It is not plausible that Rockwool will be contributing significantly to any of these revenue streams. Where will this half- to three-quarters of a million dollars in tax revenue from Rockwool come from?

Paul Espinosa, public affairs manager for Rockwool Ranson and current member of the West Virginia House of Delegates (representing District 66), is cited as claiming that Rockwool’s employees will make on average $42,700 a year. This is a notable reduction from what was promised. A 2017 Deloitte economic impact study we obtained via FOIA, which was used to convince local leaders in the JCDA and elsewhere to support Rockwool, claimed the average yearly salary would be $46,611. Espinosa’s claim thus represents a surprising $3,911 per year reduction, or a more than 9% lower average pay from what was promised. Worse yet, according to the Deloitte economic impact study, paid for by Rockwool, the majority of workers (117 of them) will make an average of $31,000 a year – nowhere close to the $46,611 a year that was used to woo our public representatives.

$750,000 vs. nearly nothing


Figure 2. Source, Deloitte Economic Impact Study: Project Shuttle

It is likely that by “generate” Espinosa was slyly referring to “Indirect and Induced taxes” not taxes Rockwool will actually pay. This calculated estimated, explained in the Deloitte study, considers taxes generated by “business-to-business and household expenditure activities arising from the direct impact of Rockwool’s operations”. The issue is as explained above these business-to-business transactions will not occur in Ranson to any significant extent, because Rockwool’s suppliers are outside of Ranson. Similarly, the employees of Rockwool’s suppliers likely live nearer to those businesses and pay taxes there. Further may of the taxes taken into consideration in this calculation are state and federal not municipal taxes as can be seen in table 8.

The article also published Rockwool’s claim that for the first 10 years Rockwool will pay $40,000 in property and “other taxes.” Is Espinosa referring here to a payment in lieu of taxes? If so, we note that no payment in lieu of taxes is called for in the May 2019 WVEDA deal (which simply absolves Rockwool of their property tax burden altogether for a decade) and no other agreement providing for payments of this type can be found. And the article fails to say that only a minor portion (17%, according to the 2019 levy rate sheet) of this property tax money would go to Ranson no matter how much is paid. 

Unexplained projections?

Espinosa further touts a $21.8 million yearly increase in economic activity in the county and claims that $5 million of that will be in Ranson. Frankly any rational consideration of this representation indicates it is impossible. What goods will Rockwool purchase in Ranson? There are no quarries in Ranson, no coal mines, no fracking pads, no formaldehyde concentrate dealers, no liquid oxygen suppliers – so what is Rockwool buying in Ranson to produce this $5 million impact? It is not plausible that this will all come from employee spending in Ranson. Even if every employee spent every last dollar they made after taxes and Rockwool indeed paid out $6.4 million in payroll it would not amount to $5 million in impact. This is just another in the long line of misleading and easily disproven claims to be made by Rockwool in its efforts to bring heavy industry to Jefferson County. 

  • March 13, 2020

Leading constitutional scholar leads Jefferson County taxpayers challenge to tax forgiveness scheme that illegally favors Denmark-based multinational over other West Virginia taxpayers

Citing clear language in the West Virginia State Constitution in its support, Jefferson County Foundation sent notice that its intends to file suit in Kanawha County Circuit Court to block the state from illegally exempting Rockwool from real and personal taxes on a proposed industrial facility in Jefferson County.

Download Jefferson County Foundation’s Complaint (.pdf)

West Virginia University Law School Professor Robert M. Bastress filed the complaint along with co-counsel law firms Arnold & Bailey, PLLC and DiPeiro, Simmons, McGinley & Bastress PLLC. A noted constitutional law authority, Professor Bastress has litigated and written extensively on the history and meaning of the state constitution and is the author of The West Virginia State Constitution (Oxford University Press, 2016).

On May 2, 2019, the West Virginia Economic Development Authority (WVEDA) authorized the issuance of up to $150 million in lease revenue bonds for a term of up to 10 years, during which the WVEDA would hold title to Rockwool’s Jefferson Orchards property which includes approximately 130 acres of land. Jefferson County Foundation’s complaint alleges that the arrangement violates Article X, Section 1 of the West Virginia Constitution since WVEDA’s interest in the Jefferson Orchards property would be exempt from ad valorem taxes, and as a result, Rockwool would not have to pay the same real and property taxes as other individual and business taxpayers in the state.

WVEDA’s May 2019 action in Charleston took place even as the Circuit Court in Jefferson County was considering a challenge to a similar tax-relief scheme using a so-called Payment In Lieu of Taxes (PILOT) agreement involving Rockwool, the Jefferson County Development Authority, and other county and local and state government entities. In August 2019, the court ruled the PILOT agreement to be invalid without having to reach the issue of its constitutionality.

“West Virginia’s constitution is clear in its requirement that ‘taxation shall be equal and uniform’ and the WVEDA’s action equally clearly violates it,” observed Professor Bastress. Co-counsel Christopher Stroech of Arnold & Bailey added, “this case presents an ideal opportunity to confirm and clarify the scope of the Constitution’s tax uniformity clause, especially in light of the invalidation of the Rockwool PILOT agreement on other grounds.”

Dr. Christine Wimer, president of Jefferson County Foundation, commented that “individual taxpayers, like me, as well as long-time West Virginia businesses who aren’t getting these lucrative tax breaks, are treated unfairly and unequally when the WVEDA abuses its power this way.” She continued, “Jefferson County’s location in the Eastern Panhandle combined with a well-educated workforce and robust local economy means that such tax breaks are not only unfair and unconstitutional, they are not needed to attract employers and investment. They also unnecessarily drain money from public services such as schools, infrastructure, and emergency services.”

Jefferson County Foundation’s complaint asks for the invalidation of the WVEDA’s May 2 action including cancellation of plans for any government agency to take title of the Rockwool property.

The complaint can be found here.