Honda expanding test track in Kern County

BY JAMES BURGER

TUESDAY, DEC 8, 2015

American Honda is coming back to Kern County.

The company announced Tuesday it has launched a $25 million project to reopen and expand its Honda Proving Center of California test track in Cantil.

Tom Fromdahl, senior manager for Honda, said a two-mile, straight-away and other tracks will be added to the Proving Center’s 7.5-mile oval, 4.5-mile winding road and motocross tracks.

It will expand the company’s testing capabilities here in the United States, he said.

“Some of our most iconic vehicles proved their mettle at HPCC and we are happy to continue that tradition at this high-performance testing ground,” said John Mendel, executive vice president of the Automobile Division of American Honda, in a press release announcing the move.

The press release noted that the existing tracks at the facility will be refurbished.

The vehicle test facility in the Mojave Desert north of California City opened in 1990 as a site for the vehicle maker to test cars, ATVs and motorcycles.

It closed in 2010 and the property was put on the market.

Kern County Administrative Officer John Nilon said the Kern Economic Development Corporation has been quietly working with Honda to bring the project back online in Kern County, using the moniker “Project Speed Racer” to keep the news under wraps.

Assistant County Administrative Officer Teresa Hitchcock said the last piece of the puzzle, which landed the deal, was a decision by the Kern County Board of Supervisors Tuesday to approve a five-year economic development deal for the project.

Only one of the supervisors — Zack Scrivner, who represents the district in which the business expansion would take place — was aware of the identity of the business before they voted on it, Hitchcock said.

The secrecy was necessary, she said, to allow Honda to explore a number of other potential locations for the project and make its decision without public speculation or concerning their employees unnecessarily.

Hitchcock said the incentive plan approved by supervisors on Tuesday would absolve Honda from having to pay 90 percent of the property and sales taxes that the expansion of the project would produce. The remaining 10 percent of the taxes would go to help administer the county’s economic incentive program.

After five years, Hitchcock said, the tax break would end and the tax revenue would revert to county coffers.

The project is expected to generate 21 jobs, Hitchcock said.

FEES

Supervisors, at their Tuesday meeting, also approved a range of new fees that oil and gas production companies will pay as part of the newly approved Kern County permit for oil and gas wells.

The approval of the streamlined oil and gas permitting process the county approved was controversial, with environmental groups and some agricultural companies saying the process threatens the environment and the surface land ownership rights of farmers.

That new ordinance was due to take effect on Wednesday.

Tuesday’s approval came after oil and gas companies supported the basic $1,260 in fees. The industry split on a $10,000 deposit required to cover county costs in monitoring the drilling operation to make sure the petroleum company is complying with the new ordinance.

Suzanne Noble of the Western States Petroleum Association spoke in support of the fees, including the $10,000 deposit.

“We are willing to pay these fees,” she said.

The fees, and costs of complying with the new ordinance, are expensive, she said, but it’s worth it to make sure oil producers can reliably obtain permits to drill new wells.

Another speaker complained about the size of the $10,000 deposit, which is designed to cover the costs for a compliance officer to be onsite to monitor the drilling operation at all times.

After a substantial discussion, Supervisor Zack Scrivner made a motion to approve the fee schedule but reduce the deposit size to $5,000.

Supervisors voted unanimously to support the revised fees structure.

COUNTY SEAL

Supervisors also voted to approve a revision to the official Kern County seal and flag in honor of the county’s 150th anniversary in 2016.

The public will be asked to help pick the symbols that will be displayed on the seal and flag.

Supervisor Mike Maggard quipped that, in his experience changing his elementary school seal when he was younger, the board may get grief for years about tinkering with the county seal..

http://www.bakersfield.com/News/2015/12/08/County-approves-tax-deal-for-company-expansion.html