Commissioners clash over corporate grants to Air Products and Ebonik
Lehigh County Commissioners clashed over whether to authorize grants to Air Products and to Germany-based Evonik, which bought the former Air Products headquarters’ building and 41 acres from Air Products.
The grants, allotting $3 million for Air Products and $2.5 million for Evonik, come from the state of Pennsylvania under the Redevelopment Assistance Capital Program.
Commissioner Jeffrey Dutt, a Republican, was for passing through the grants. “We need to focus on jobs, really good jobs. I will support it [the two resolutions].”
“They don’t need it,” Lehigh County Commissioner Bob Elbich, a Democrat, said. “I will not support either of these two bills.”
“I’m very passionate about this,” Elbich said. “I listened to the points; I respect them. Air Products is a good corporate citizen. All of these [supporting] points can be said about our small businesses. Our small businesses will create more [jobs]. Our priorities are the wrong priorities.”
Lehigh County Commissioner Dave Harrington, also a Democrat, was split.
While saying he is generally against giving public money for private companies, he voted “no” on the grant to Evonik, but “yes” to the grant to Air Products.
“Air Products has made remarkable stewardship here in the Lehigh Valley,” Harrington said.
In the final tally, the Air Products grant was approved 8 to 1 with Elbich voting against the award. The Evonik grant was also approved, 7 to 2, with Elbich and Harrington voting no.
Air Products, according to documents filed with the commissioners, applied for the grant to assist with their new global headquarters in Upper Macungie Township between Route 222 bypass and Hamilton Boulevard.
Evonik gets their $2.5 million to assist with their redevelopment project located in Trexlertown at 7001 Hamilton Blvd.
According to a 2018 news release from Pennsylvania Gov. Tom Wolf, “Evonik’s expansion shows that the commonwealth is well-equipped for companies looking to grow their R&D capabilities. Additionally, the 50 new family-sustaining jobs will boost the local economy. I applaud Evonik for committing to grow right here in Pennsylvania.”
“Purchasing the existing facilities in the Lehigh Valley will allow us to retain the R&D capabilities, avoid business disruption and enable investments to the site to modernize and sustain the growth of our businesses here,” John Rolando, North America region president for Evonik, was quoted in the news release.
“We appreciate the support of the Wolf administration and the governor’s action team in helping move this project forward.”
Evonik Corp. is the North American arm of Evonik Industries, a German specialty chemicals company which operates through three segments: nutrition and care, resource efficiency and performance materials.
Its products range from amino acids and building protection coatings to specialty acrylic products. The company serves the automotive industry, makers of coating, pharmaceuticals and plastics. Evonik is active in over 100 countries with more than 36,000 employees.
According to a PA government website, “The Redevelopment Assistance Capital Program is a PA Commonwealth grant program administered by the office of the budget for the acquisition and construction of regional economic, cultural, civic, recreational and historical improvement projects.
RACP projects are authorized in the redevelopment assistance section of a capital budget itemization act, have a regional or multi-jurisdictional impact and generate substantial increases or maintain current levels of employment, tax revenues, or other measures of economic activity.
“RACP projects are state-funded projects that cannot obtain primary funding under other state programs.”