The Saratoga County Industrial Development Agency today approved an arrangement that will give Advanced Micro Devices an additional $28 million in sales tax breaks for its planned Luther Forest factory.
The action came even though one IDA board member said the additional tax break was unnecessary, given AMD is already getting $1.2 billion in state incentives.
“I voted yes because I am supportive of AMD,” said IDA Chairman Raymond F. Callanan. “The IDA should be supportive of bringing 1,400 jobs to the area.”
AMD, through a new spinoff company called The Foundry Co., plans to build a $4.6 billion factory at the Luther Forest Technology Campus where an estimated 1,465 people will work.
The sales tax exemption will apply to the building materials for the factory, which could start construction next summer. AMD estimates the benefit to be worth $27.8 million.
In October, the financially struggling AMD announced it obtained financing through forming a partnership with the Advanced Technology Investment Co. of Abu Dhabi. ATIC was providing $2.1 billion in financing in return for 56 percent ownership of The Foundry Co.
AMD and ATIC announced today that because of the recent decline in AMD’s stock price (it was trading at $2.14 a share at midday today), the ATIC share of ownership will rise to 66 percent, with the same investment.
The Foundry Co.’s board will remain evenly split between representatives of AMD and ATIC.
“The vote and controlling interest remain the same,” AMD spokesman Travis Bullard. “It’s great we can still get this done, given the economic climate.”
The one public speaker at the IDA’s public hearing said additional tax breaks shouldn’t go to the project, given the oil wealth in Abu Dhabi.
“I think you gentlemen ought to seriously say, enough is enough. I think we’ve given enough to AMD,” said Jerry Oswitt of Malta.
IDA board member Charles Hanehan agreed, and voted against the agreement. It passed 5-1, however, with IDA member Sue Nolen abstaining to avoid a conflict of interest with her role reviewing AMD’s plans as a member of the Malta Town Board.
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