As negotiations continue on a new lease for Tesla’s factory in Buffalo, New York, some local officials feel the state would be better off opening up the process to other companies and possibly bringing a new tenant to the site.
What’s happening?
Tesla and New York officials have been negotiating a five-year extension on the company’s current lease at Gigafactory New York, which ends in 2029.
As WKBW reported, Tesla pays just $1 in rent per year under its current terms, so long as it employs at least 1,460 workers at the location. Under the proposed extension, the rent would reportedly increase to $2 million annually through the end of 2029 and $5 million annually for the five years after, according to Spectrum News 1.
Critics and advocacy groups, however, aren’t sure that’s the best option for Buffalo or New York. They argue the rent hike would come with trade-offs such as lowered job targets and weaker environmental protections…