- Opened in 1988
- 2.4 million sq. ft.
- Peak Production: 222,000 vehicles (6 different models) in 2000
- All-in-one production facility: Paint, stamping, plastics, body, and assembly
- Almost 400 robots under house
Why Should Tesla Buy the Plant?
Benefits for Tesla Motors:
- Large capacity plant for a fraction of the cost of a new plant
- Land to grow on and off the campus of the plant (Unused pavement north of plant is large enough for a gigafactory)
- Considerably lower cost of living (See Gallery Below)
- Railway on-site
- Central Location in the US
- Capacity could reach close to 350,000 in single model production
- Large Test Track on-site
- Airport Nearby*
Considerably lower cost of living will be extremely attractive to employees when comparing the cost of living in both Fremont, CA and Sparks, NV.
#1 State for Rail and Highway accessibility*
#2 Distribution hubs*
#5 in availability of skilled labor*
6.5% effective tax in capital intensive manufacturing (CA: 17.7%, NV: 21.6%)**
Cost of doing business rank: 29 (CA: 49, NV: 24)***
Data Provided AreaVibes
What will Tesla be able to do with the plant?
- Fremont, CA will be maxed out in 2020 with about 450,000-500,000/yr.
- Overhaul of MMNA will take about 2 years with the earliest date to open would be 2017.5
- Target acquisition price should be in the range of: $15 million-$25 million
- Investment into tooling and revamping the factory could cost as much as $125 million
- Tesla would produce about 300,000/yr. at the plant
- Tesla could also produce their stationary storage in the factory which would ensure that the Fremont factory stays efficient and focused
- At full capacity the plant's employment should be over 5,000
What could attract Tesla here?
- TIF on the factory for 5 years
- Bring new renewable energy to Bloomington-Normal (Windmills)
- Start work without a Union (Tesla has had no ban on unionization, the workers simply aren't interested in unionizing) This would be a deal breaker
- State sales tax abatement on equipment (Local, State, and municipality)
- Convince an airline to fly San Francisco- CIRA (Virgin America, Jet Blue) weekly or twice weekly flights
- Use 50% of TIF Fund to directly improve the roads for autonomous testing
What impact would Tesla have on our community?
- 3,800 net job gain with average pay at $45,000 and total salary impact at $171,000,000 (5,000 employed full capacity)
- Expect $1,500,000 in property taxes post TIF incentive (Increase of roughly $900,000)
- Innovative large company to grow and foster in Bloomington-Normal Potentially setting a number of related projects in motion similar to what is happening in Sparks/Reno, NV
- Fosters an environment for a large amount of growth, VC’s-StartUps
* Area Development
** Tax Foundation: Location Matters
*** CNBC Best Business states 2015