Case Study
Deshler Chemical Company
Case Study II
Case summary summary Nine years ago, because of the considerable negotiation of the city government to the company, Deshler Chemical Company was established at the city of Conroyville, Tennesse.
The company paid enough money for the land; they constructed a plant to Deshler’s specification with the company repaying the building cost and agreed that the company should have an employment for at least 50 persons and to collect no property taxes for 10 years.
summary After several years, civic development is proposed by the city which includes a general area that involves the Deshler Chemical Company’s manufacturing operations. New park featuring boating and picnics facilities centering around Hickory creek, but waste from the chemical plant contaminated the water.
The city government requested the company to install special chemical equipment to neutralize the waste material. But the money needed for the equipment and for the maintenance is very big for the company. So the president state that insistence on such an outlay will result to abandoning the Conroyville plant and locating elsewhere.
summary The president further pointed out that the company has fulfilled every requirement on the initial agreement. The building is specially designed and built for this company’s particular type of chemical manufacturing and not an all-purpose building and can be utilized economically only by such firm such as Deshler Chemical Company.
summary The city takes view that the initial deal was offered to assist the company in getting established. The company is part of the community and therefore should assume its obligation as such. Pouring waste into a public stream is harmful and simply cannot continue. Also, in the opinion of the city officials, the threat of the company abandoning its Conroyville plant is a pure bluff. A suitable building at today’s price will cost more than twice what the one in
Case Study II
Case summary summary Nine years ago, because of the considerable negotiation of the city government to the company, Deshler Chemical Company was established at the city of Conroyville, Tennesse.
The company paid enough money for the land; they constructed a plant to Deshler’s specification with the company repaying the building cost and agreed that the company should have an employment for at least 50 persons and to collect no property taxes for 10 years.
summary After several years, civic development is proposed by the city which includes a general area that involves the Deshler Chemical Company’s manufacturing operations. New park featuring boating and picnics facilities centering around Hickory creek, but waste from the chemical plant contaminated the water.
The city government requested the company to install special chemical equipment to neutralize the waste material. But the money needed for the equipment and for the maintenance is very big for the company. So the president state that insistence on such an outlay will result to abandoning the Conroyville plant and locating elsewhere.
summary The president further pointed out that the company has fulfilled every requirement on the initial agreement. The building is specially designed and built for this company’s particular type of chemical manufacturing and not an all-purpose building and can be utilized economically only by such firm such as Deshler Chemical Company.
summary The city takes view that the initial deal was offered to assist the company in getting established. The company is part of the community and therefore should assume its obligation as such. Pouring waste into a public stream is harmful and simply cannot continue. Also, in the opinion of the city officials, the threat of the company abandoning its Conroyville plant is a pure bluff. A suitable building at today’s price will cost more than twice what the one in