Clay OKs $30 million ‘windfall’ from Micron project

Clay, N.Y. – The Clay Town Board voted 6-0 Tuesday to approve an agreement under which Micron Technology will pay the town $30 million to host a massive semiconductor plant under construction on Route 31.

Board members praised the agreement, noting the $30 million exceeds the town’s total annual budget of $25 million.

“How often in public service do you get a windfall?” Deputy Town Supervisor Joe Bick said after the vote. “I don’t know how else to describe it other than as a windfall.”

Micron began construction in January on what it says will be the nation’s largest semiconductor manufacturing plant.

The company says the factory will cost up to $100 billion to build over 20 years. It will employ up to 9,000 people on site and create more than 40,000 other jobs at supply chain companies and other businesses drawn to the area, according to the company.

Under an unusual agreement negotiated with the town, Micron will pay $30 million in lieu of traditional building permit fees for the first of what the company says will be four fabrication facilities within the 1,400-acre White Pine Commerce Park.

Bick said the $30 million will far exceed the cost of issuing building permits for the first fab. Town officials do not know exactly how much it will cost in salaries and other expenses to issue the permits, but Bick said one estimate is $5 million to $7 million.

Under the town’s standard building permit fee schedule, Micron would be charged an estimated $62 million for the first fab. However, Micron could challenge such a large fee because state law limits municipalities to charging reasonable fees for administration, review and inspections necessary to issue permits, town officials said.

Bick said the town decided instead to negotiate a project development agreement under which Micron would pay a flat sum.

Under the agreement, Micron will pay $20 million in three equal installments over the next three years.

Bick said the town will bank the $20 million and use interest earned on it to cover the cost of issuing Micron’s building permits. Any remaining interest could be used to reduce or eliminate future tax levy increases, he said.

The remaining $10 million of the $30 million will be paid within three years. The money must be used for community improvement projects, but the town will decide which projects.

Town board members said they are considering spending the $10 million on projects such as a splash pad at Clay Park Central, building a community center and purchasing land for new town parks.

“Residents in Clay are going to benefit directly from the largest economic development project in U.S. history, no ifs, ands or buts,” said Bick. “And that was important to us when we negotiated.”

Article by: Rick Moriarty (rmoriarty@syracuse.com)

https://www.syracuse.com/micron/2026/07/clay-oks-30-million-windfall-from-micron-project.html