Thursday, July 10, 2008

'Voltageville' hopes to gain Tesla plant

Second Chance
'Voltageville' hopes to gain Tesla plant
Article Launched: 07/06/2008



Just when you thought there was nothing but bad news coming out of California - from the depressed economy to raging wildfires - the governor has revealed a ray of sunshine that could possibly brighten Vacaville's future.

Tesla Motors, the first company to mass produce an all-electric car, has decided to locate a new manufacturing plant for its Model S electric sedan in California.

What's more, there's a chance that plant could come to Vacaville.

A couple of years ago, the city was on a short list of possible locations for an electric-car plant, but was eliminated in January 2007. It appeared that Pittsburg was in the running, until New Mexico won over the company in March 2007.

California rallied to offer incentives to keep Tesla, whose headquarters is in San Carlos, but it appeared to be too little, too late.

Last week, however, it became clear that the negotiations had continued. Apparently, a tax break brokered by the governor and state treasurer made the difference.

Officials aren't saying whether Vacaville is officially back on the list, but it would be fitting.

For one thing, our community is known as "Voltageville" because the city has more electric vehicles per capita than any other city in the country.

In addition, we meet one of the company's requirements: the desire to locate within two hours of its headquarters.

Furthermore, the city offers an ideal location between the University of California, Davis, and the University of California, Berkeley.

Vacaville also has a reputation as a "hot bed of support" for electric vehicles, according to Vacaville's Economic Development Director Mike Palombo.

Under the deal struck last week, Tesla will not have to pay the tax on the $100 million worth of equipment it will need to purchase to build its Model S - an agreement that could save Tesla about $8 million. The company will also be eligible for at least $1 million in training funds.

The exact size of the plant to be built was not disclosed, but the one proposed in New Mexico was expected to employ 400 people. The California plant is supposed to open in 2010. It will build Tesla's Model S, a five-passenger sedan that can travel 225 miles between charges to its electric engine. It is expected to cost about $60,000.

"These vehicles can play a big part in helping California successfully implement its groundbreaking laws to fight climate change," said State Treasurer Bill Lockyer. "By offering this financial incentive, our goal is to ensure zero-emission vehicles realize their full potential in our state. In the bargain, we believe the policy will bolster our emerging green economy, create good-paying jobs and reduce our dependence on foreign oil."

This is just the right sort of company that California should lobby to keep.

As the governor pointed out, "We want these cutting-edge companies not to just start in California and do their research and development here - we want them to build in California.

And if that building could take place in Vacaville, that would be some welcome good news.