Clay Priced Micron's Fab 1 From Scratch, and the Town's Own Numbers Don't Agree

Key Actions & Decisions

• ◆ July 7, 2026 Town Board, 6-0: adopted Local Law No. 7, the "Large-Scale Development Permit and Community Host Agreement Authorization Law," defining large-scale development as $100,000,000 or more in project cost and authorizing the town to negotiate voluntary Host Agreements instead of the standard fee formula
• ◆ During that hearing, Deputy Supervisor Bick told the board there is no precedent for fees at this scale, citing Fab 1's cost as $89 billion and the resulting permit fee as $69 million — money usable, under existing law, only for inspection costs
• ◆ The Host Agreement presentation given later the same night put Fab 1's construction cost at $8.9 billion with a $62 million fee under current code, a tenfold gap from the $89 billion figure cited earlier, with fee estimates that don't scale proportionally between the two
• ◆ The presentation's own risk analysis said Micron could sue to recover a fee it was forced to pay in full, and that a judge weighing only the town's actual cost of service — case law behind it, per the slides — could leave the town with far less than the formula implies
• ◆ Negotiation history per the presentation: an opening ask based on the $51 billion value of all four planned fabs (a formula fee near $273 million), the town's own initial request of $150 million over 15 years for the full project, before settling on Fab 1 alone for $30 million over three years ($20 million in three annual payments plus $10 million in Green Chips Act spending dedicated to the town)
• ◆ Resident Shelly Hotaling gave the board a different tally — $15 million for fees/inspections and $6 million for the town — and argued the agreement should go to a public referendum; Deputy Supervisor Bick said it would not go to a vote of residents
• ◆ Councilor Russell said the money involved exceeds the town's own budget; Deputy Supervisor Bick called the arrangement "a pioneer agreement, nothing like this currently exists" and said the town had done its own diligence "to ensure everyone benefits"
• ◆ Councilor Russell separately noted the agreement covers only the Fab 1 portion of Micron's larger, multi-fab project
• ◆ Immediately after Local Law No. 7 passed, Deputy Supervisor Bick moved adoption of the Community Host Agreement with Micron New York Semiconductor Manufacturing, LLC, seconded by Councilor Capria — the minutes as released record no vote on that motion before the next recorded vote, a 6-0 vote to adjourn at 6:17 p.m.
• ◆ Residents floated uses for the money — sewers, roads, parks, splash pads, low-cost housing, Meltzer Park restrooms, sound barriers, a citizens' advisory board — none committed by the law itself, which leaves spending beyond administrative costs "at the town's discretion"