Oklahoma signs deal for Panasonic battery plant in Pryor, but there’s a catch

OKLAHOMA CITY — The state has inked a contract for Panasonic to open an enormous electrical car battery plant on the MidAmerica Industrial Park in Pryor. 

However a dispute over who pays for roughly $245 million in website work on the industrial park means the settlement is not a completed deal but.

The Oklahoma Division of Commerce confirmed that the state has entered into an settlement with the Japanese know-how firm in a deal that would end in greater than 3,500 new jobs. Gov. Kevin Stitt mentioned the financial improvement deal would end in a $5 billion funding within the state. 

After the Oklahoma Home noticed a replica of the settlement on Wednesday, Speaker Charles McCall, R-Atoka, mentioned the deal doesn’t meet the {qualifications} for Panasonic to be eligible for $698 million in financial improvement incentives. 

The announcement of the state’s settlement with Panasonic comes because the $698 million socked away within the Giant-scale Financial Exercise and Growth (LEAD) Act Fund is about to revert to the state’s normal income fund. 

“The Home reviewed the contract two days in the past and notified the Division of Commerce, the Governor and Challenge Josie to tell them that it doesn’t meet the standards and provides them a chance to right it earlier than the deadline,” McCall mentioned.

Beforehand dubbed Challenge Ocean, Challenge Josie is the brand new code identify for the Panasonic deal. 

McCall added the corporate should signal a contract “freed from contingencies” so as to be eligible for LEAD Act funds. A spokesman for McCall mentioned he thinks the settlement the Division of Commerce touted Friday is identical contract the Home decided was inadequate days prior. 

In a information convention Friday, Stitt mentioned the Oklahoma Legislature might be tasked with discovering $245 million to cowl the prices of website work and infrastructure enhancements on the industrial park in Pryor as a part of the deal. It is unclear if the Legislature needs to acceptable an extra $245 million for the undertaking. 

“It is the biggest financial improvement (deal) in state historical past,” Stitt mentioned. He proposed utilizing a number of the state’s $1.2 billion in surplus money to cowl the positioning work requested by Panasonic. 

Panasonic was eyeing Oklahoma for an electrical car battery plant final yr. The corporate chosen Kansas for its subsequent manufacturing plant as an alternative. 

Underneath the LEAD Act, Panasonic may qualify for $698 million in state incentives if the corporate invests a minimum of $3.6 billion within the plant and creates 3,500 new jobs inside 4 years.

However lawmakers handed laws earlier this yr for the LEAD Act cash to revert to the state’s normal income fund on April 15 if the state does not have a binding financial improvement deal in place. If the cash does get clawed again, that $698 million may nonetheless be used for financial improvement initiatives, legislative leaders mentioned this week. 

Division of Commerce spokeswoman Becky Samples mentioned the company is continuous discussions with Panasonic and can share extra info because it turns into obtainable. The company didn’t make obtainable a replica of the Panasonic contract. 

Earlier this yr, Volkswagen thought-about constructing an electrical car battery plant in Pryor. The corporate opted to construct in Canada as an alternative.