By Joe Nelson
Posted: 09/08/2010 04:14:03 PM PDT
The Sun
For the second time, U.S. Citizenship and Immigration Services has threatened to terminate the Victorville Regional Center, which the city fears could jeopardize hundreds of jobs at Southern California Logistics Airport.
In a notice of its intent to terminate the Regional Center dated Aug. 10, U.S. Citizenship and Immigration Services, or USCIS, determined that most of the jobs being generated at the Regional Center, including jobs at the Dr. Pepper Snapple and Platipak factories, could not be directly attributed to a $30 million wastewater plant, which began operations in July.
An economic analysis submitted to USCIS by Regional Center Chief Executive Officer Keith Metzler in late June indicated that money from foreign investors would be used to construct the wastewater plant, which would create 12 jobs at the plant once completed and treat 900,000 gallons of industrial wastewater daily from the Dr. Pepper Snapple plant. The construction of the wastewater plant, according to Metzler, would also create more than 400 jobs at the bottling plant and more than 1,200 jobs within the regional center itself.
But USCIS is disagreeing with Metzler’s analysis.
“It is of note that neither the Dr. Pepper Snapple plant nor the Plastipak plant appear to have a relationship with the wastewater treatment plant other than being parties to agreements to be consumers of the services of the wastewater treatment plant,” according to the USCIS letter. “It would appear that your
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regional center asserts that any newly created public or private entity that provides a commodity or service to commercial consumers, such as a wastewater treatment plant, power plant, solid waste disposal center, etc., would in effect be able to claim credit for the jobs created by the commercial consumers of its services.”
USCIS is the federal agency that oversees a foreign investor program called EB-5, which allows wealthy foreign investors to invest in American infrastructure and capital improvement projects that create at least 10 jobs in exchange for green cards.
Victorville was given approval by USCIS last June as a Regional Center, allowing the city to participate in the EB-5 program. Newport Beach energy magnate William Buck Johns has been aggressively recruiting investors in the the last year from Asia, South Africa and Mexico.
So far, 28 investors have agreed to invest in the regional center. Nineteen applications have been processed through USCIS, and loans totaling $9.5 million have been made to the Southern California Logistics Airport Authority, Johns said.
But the latest roadblock by USCIS – its second notice threatening to terminate the regional center – threatens it all.
“The notice directly jeopardizes the ability of the Southern California Logistics Airport
Industrial Wastewater Treatment Facility to sustain jobs created as it prohibits the ability of the SCLA (wastewater treatment plant) to refinance its construction debt,” Metzler said in his 14-page response letter to USCIS dated Sept. 1.
Despite the setbacks, Johns and other city officials who have kept up on the regional center issue are nothing but optimistic.
“We’re expecting our green light from USCIS any day now,” Johns said Wednesday.
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