Tiger out?
Asbestos may trip up deal for plant
By JIMMY GALVAN Managing Editor
"I would like to welcome you

to Jasper's Day. Today is not a

day to celebrate Tiger Truck coming

to Jasper but a day to celebrate

Jasper's successful recruitment

of a manufacturing company

that will bring direct jobs and significant

economic impact to the

entire county."

Michael S. Ward, Chief Executive

Officer for Tiger Truck on March

12, 2007.

Even though Jasper County officials received notice on Thursday, June 21 that Tiger Truck was not going to locate an assembly plant in Jasper, officials are not throwing in the towel yet on the plant.

Michael S. Ward, chief executive officer of China-based Tiger Truck, said in a letter to the owner of the land considered for development, "I regret to inform you that effective immediately Tiger Truck can no longer wait to close on the Jasper real estate and will no longer proceed with closing efforts."

The letter was e-mailed to Jasper Economic Development Corporation Executive Director Tom McClurg, Mike Bruce, owner of the land, and Jasper County Judge Mark Allen.

But Monday, June 25, McClurg said the door is still slightly open on Tiger Truck and Jasper.

Representatives from Tiger Truck declined comment until Thursday when Ward is expected to return from China.

McClurg said Bruce has made alternate proposals on the land sale to Tiger Truck. Ward is not expected back in Dallas until Thursday and McClurg said he expects more discussions to be held then.

McClurg said a key stumbling block on the close of the land is the issue of asbestos removal at the former LP plant.

"Mr. Ward wanted to know more about the asbestos removal and costs," McClurg said. "We are going to do everything humanly possible and within the bounds of governmental rules to satisfy whatever problems Tiger Truck has to make the Jasper site the most desirable location.

"I'm sure Tiger is going back through their records and looking at other communities at this point," McClurg said. "But because of the time issues, which Mr. Ward stated as his principal issue, Jasper to me would still be at the top of the list."

Tiger Truck officials announced March 12 of their intention to locate the first assembly plant in the United States for vehicles based on designs by ChangAn Automobile Group, China's third largest.

Tiger Truck was to open the first-ever manufacturing plant for a Chinese-engineered and designed truck in the United States in Jasper at the former LP plant on Hwy. 63 East. The plant was expected to employ between 100 and 200.

"Our China supplier has called production requirements in our agreement with them that no longer allows us to wait for all the property issues to be resolved," Ward states in the letter. "They find that to wait longer would put their commitment to their customer base in jeopardy.

"Some of our equity investors are not willing to fund their part of the project until all the real estate issues are resolved and implemented before the equity injection takes place," Ward stated. "Under these circumstances, in order to move forward it would have been necessary to bring in new investors, and at this late date, we do not have time.

"I am personally deeply disappointed that Jasper will not be my and Tiger's new home," Ward stated. "My personal commitment to Jasper and the community is in conflict with my position as Tiger's CEO."

McClurg believes Ward is "stressed" to make a final decision on the Jasper location.

"These are conditions that the Chinese has placed on timing," McClurg said. "Mr. Ward talked with environmental legal teams who stated the cleanup would take 60-90 days.

McClurg said that any new property that Tiger Truck looks at would need a Phase I environmental study completed before a deal could be finalized.

"Chances are most facilities of any age are going to have some environmental conditions that have to be addressed and will take some time," McClurg said. "We are well on our way to resolving the environmental questions and I think Tiger should seriously look at before completely walking away from Jasper."

McClurg said he believes Tiger Truck is exploring other cities but added that there was no definite answer from Ward on not considering Bruce's new offer. The offer is expected to include incentives towards the cleanup of the property.

"I think Jasper is in a better position to resolve any kind of questions that might exist in a faster mode because of what we have done to date than almost any other location. I have not encountered any issue, including the environmental issues, that are un-resolvable," McClurg said. "Plus we have the rail and port access which were two major issues for Tiger. Finding proper facilities that meet those requirements are pretty hard to come by."

Allen said he has requested to the Texas Commission on Environmental Quality and the Environment Protection Agency seeking assistance with the fuel spill on the property.

Allen said he requested the agencies designate the oil fuel spill is declared a Brownfields assistance site. This would allow federal and state funding to come in to assist with the cleanup of the site.

Brownfields are real property, the expansion, redevelopment, or reuse of which may be complicated by the presence or potential presence of a hazardous substance, pollutant, or contaminant. Cleaning up and reinvesting in these properties takes development pressures off of undeveloped, open land, and both improves and protects the environment.

"I am aware of environmental issues that could in effect stall or stop the continued planning of opening the Tiger Truck plant here," Allen said. "We are working to help them out as far as the county can legally do to help them including coordinating efforts through the state and federal governments to get help.

"But at this point, it is all up in the air," Allen said. "We are willing to help Tiger out with as much as we can but I have committed that we won't spend taxpayers' dollars on any commercial enterprises."