T.E.A. Parties
T.E.A. Parties
Date: Wednesday, March 03, 2010 4:21 PM
<<<<< JOB DESTRUCTION NEWSLETTER No. 2088 -- 3/03/2010 >>>>>
Web version:
http://blog.vdare.com/archives/2010/03/03/tea-parties/#more-22782
Cities all across the U.S.A. are in a mad stampede to be declared TEA friendly
by state labor departments and the Dept. of Homeland Security. In this case
TEA status has nothing to do with patriotism or protests -- it s what happens
when an area is designated as a Targeted Employment Area (TEA), or "EB-5
Zone". Areas can be TEAs if they are: "defined by law as a rural area or an
area that has experienced high unemployment of at least 150 percent of the
national average. "
EB-5 Immigrant Investor
http://www.uscis.gov/portal/site/uscis/menuitem.eb1d4c2a3e5b9ac89243c6a7543f6d1a/?vgnextchannel=facb83453d4a3210VgnVCM100000b92ca60aRCRD&vgnextoid=f
acb83453d4a3210VgnVCM100000b92ca60aRCRD
The EB-5 is a visa program that allows immigrants to obtain instant green
cards for permanent residency if they agree to invest $1 million in a business
in the U.S. If they locate their business in a TEA they get a green card even
if they invest 50% less.
To qualify you must: Invest or be in the process of investing at
least $1,000,000. If your investment is in a designated targeted
employment area then the minimum investment requirement is
$500,000.
Another way to put this is that the U.S. government will give an instant green
card to all aliens that are willing pony up $1 million in cash. They get a 50%
discount if they agree to invest the cash in a TEA.
There is one tiny catch to qualify for an EB-5 visa: the regulations say that
the loot must be invested in a business that employs 10 people. Local
governments believe that rich foreign investors will immigrate to their area
to start businesses, and employ lots of Americans.
There is a mad rush for TEA status all across the nation. New York put up a
website devoted to attracting EB-5 investors. The home page has a video you
can watch with several different selections of language subtitles, and it is
loaded with diversity talk. Interviews are made by hosts and mock guests who
are represented by a large variety of racial groups. New York is making an
offer that can t be refused. Here are just some of the perks they
offer:
* TEA parties that include wining, dining, and tours by officials
* Green cards are granted almost instantly.
* The entire family is invited and will be given green cards.
* They don t have to manage their investment or live on location.
* There are no requirements for education or English fluency
* No business experience is necessary if cash is flashed.
* New York will pay for immigration lawyers if needed.
* New York officials will grease skids and lick boots on command.
http://nycrc.com/
New York City Regional Center
There are plenty of examples of cities who are rushing for TEA status.
Milwaukee is hoping that Chinese investors will want EB-5 visas so bad they
will bail out the Pabst Beer Brewing Company. If this thing really happens
maybe the EB-5 should be called a "belch visa"!
The Pabst Brewing Co. complex, perhaps the most conspicuous symbol
of Milwaukee s urban decay, is reaching out for redevelopment
funding from an unexpected source: the Chinese. ...
The redevelopment of the 21-acre site is one of three projects in
southeast Wisconsin soliciting international investments under an
obscure federal program that was approved for the region less
than a year ago.Asian funds sought for redevelopment, by John
Schmid of the Journal Sentinel, March 28, 2008
Recently the Phoenix Business Journal wrote about a small city on the
outskirts of Phoenix, Arizona called Surprise. Like many sand cities, this one
is suffering from the real estate bust. City officials are hoping that once
they get TEA status there will be hoards of money laden foreign investors that
come to Arizona to start solar power projects and high-tech companies, which
will in turn create lots of high paying jobs for Arizonans.
Economic Development Director Jeanine Jerkovic said Surprise has
applied to become a regional center in the federal EB-5 visa
program, which allows foreign nationals and their immediate
families to get permanent U.S. green cards if they invest
$500,000 to $1 million in the U.S. economy.
She expects the foreign investment zone designation to help
attract cash infusions for solar, biomedical and high-tech
startups in Surprise, including the AZ TechCelerator, a
business incubator housed in the old Surprise City Hall.
She also said there is one health care company that could
receive foreign investment if the city gets the EB-5
designation. .....
There are 89 regional centers nationwide under the EB-5
program, according to the Bureau of Citizenship and
Immigration Services. Some of them are in Los Angeles, Napa
Valley and Riverside, Calif.; Las Vegas; Seattle; and Miami.
Surprise looking to attract more foreign investors, by Mike
Sunnucks, February 26, 2010
So, Arizona is a state with more sunshine than any other state in the union
but it cannot manage to develop its own solar power industry without the help
of foreign investors. How pathetic is that?
http://wiki.answers.com/Q/What_state_has_the_most_days_of_sunshine
What state has the most days of sunshine?
Arizona leaders aren t showing much confidence that Obama s vaunted green
initiatives funded by stimulus money are going to save the economy by
producing "green jobs".
Surprise officials are deluding themselves if they think $500,000 investments
by immigrants is the way to spawn lucrative business ventures.
Disregarding the fact that foreigners with EB-5 visas rarely invest their
money in businesses that employ many more than their immediate family members
(who come with them); these officials seem to be clueless about what it takes
to start high-tech businesses. One half of a million dollars isn t even enough
to start a McDonald s Hamburger franchise. According to the "About McDonald s"
web site an initial fee of $45,000 must be paid to buy a franchise and the
restaurant will cost from $950,900 to $1,797,700 to build.
http://www.aboutmcdonalds.com/mcd/franchising/us_franchising/purchasing_your_franchise/new_restaurants.html
About McDonalds, New Restaurants
http://www.eetimes.com/showArticle.jhtml?articleID=198500459
UMC to enter solar cell business in collaboration with Ulvac
In contrast, according to the EE Times, a company called NexPower Technology
Corp. was established in 2005 to produce thin film solar cells.
It cost $24 million just to start the business, and another $60 million to
build a production facility. Oh, and one minor detail to consider: the plant
was built in Taiwan, not Arizona. Jerkovic is downright silly to think that
rich foreigners are going to build research centers and factories in Arizona
when they can build it in other countries. Arizona has lots of sunshine but so
does the Gobi desert, and labor is way cheaper there!
Jerkovic said Surprise s proposed EB-5 zone covers the entire city
and is focused on new technologies including solar, biotechnology
and information technology. She hopes it will help bring business
investments into the West Valley from markets such as Spain,
Canada and China. ...
There are 89 regional centers nationwide under the EB-5 program,
according to the Bureau of Citizenship and Immigration Services.
Some of them are in Los Angeles, Napa Valley and Riverside,
Calif.; Las Vegas; Seattle; and Miami.
There are other problems with the EB-5 visa program -- like for instance it s
rife with fraud and corruption. EB-5 fraud is a subject for another blog that
I will do hopefully soon. There are other ominous signs to be discussed, like
for instance a new Congressional push to expand the EB-5 program.
Sunnucks did an excellent job of describing my misgivings with the EB-5 visa
program:
But Rob Sanchez, author of the Job Destruction newsletter in
Chandler, said foreign investors sometimes get their green
cards without coming through with promised investments. He
also questions the idea of the U.S. government essentially
selling green cards to rich investors.
"Foreigners come into the U.S. flashing big billfolds, but
they rarely invest the half- to $1 million they were
supposed to," Sanchez said. "They usually end up investing a
fraction of the money, perhaps $10,000 in dubious enterprises,
and they have no intent to hire Americans."
That last statement might not make it clear what I meant (Oops! I m not used
to being accurately quoted!) but I can t blame Sunnucks. What I should have
said is that EB-5 investors are under no requirement to hire Americans for
their new businesses so way too often they opt to hire family members or H-1Bs
instead, or even worse they defrauded the system by never investing the money
in a business.
Vdare archive of my writings:
http://www.vdare.com/sanchez/index.htm
ARTICLES:
http://www.bizjournals.com/sacramento/othercities/phoenix/stories/2010/03/01/story6.html?b=1267419600^2944541&s=industry&i=economic_snapshot
Surprise looking to attract more foreign investors
http://www.jsonline.com/news/milwaukee/29556494.html
Asian funds sought for redevelopment
Pabst Brewing site owner seeks Chinese funding for international trade center
+++++++++++++++++++++++++++++++++++++++++++++++++++
http://www.bizjournals.com/sacramento/othercities/phoenix/stories/2010/03/01/story6.html?b=1267419600^2944541&s=industry&i=economic_snapshot
Friday, February 26, 2010
Surprise looking to attract more foreign investors Phoenix Business Journal -
by Mike Sunnucks Media
The city of Surprise wants to attract more foreign investment to finance solar
and technology startups.
Economic Development Director Jeanine Jerkovic said Surprise has applied to
become a regional center in the federal EB-5 visa program, which allows
foreign nationals and their immediate families to get permanent U.S. green
cards if they invest $500,000 to $1 million in the U.S. economy.
"We hope it will spearhead another source of funding," Jerkovic said.
She expects the foreign investment zone designation to help attract cash
infusions for solar, biomedical and high-tech startups in Surprise, including
the AZ TechCelerator, a business incubator housed in the old Surprise City
Hall. She also said there is one health care company that could receive
foreign investment if the city gets the EB-5 designation.
If the Arizona Department of Commerce and federal government designate
Surprise as a regional center, the foreign investment threshold would be
$500,000 and each investment must create at least 10 jobs to qualify for the
visa program.
Regional centers must exhibit economic needs, including economic distress such
as high unemployment rates. In January, the U.S. unemployment rate was
9.7 percent. The rate in Surprise was 8.4 percent overall, but it was as high
as 14 percent in some geographic areas, Jerkovic said.
Fernando Jimenez, international trade and investment director for ADOC, said
his agency approved Surprise s application to become a foreign investment zone
at the beginning of the year, and it now is under consideration by the U.S.
Bureau of Citizenship and Immigration Services.
He expects a decision within six months.
Good opportunity
The EB-5 visa program has been around since 1990, but has come more into focus
as credit and financing options evaporate for startups and small businesses.
U.S. financial institutions have strangled small-business and consumer lending
as banks try to boost reserves and avoid bad investments during the recession.
"This is a great opportunity for projects that don t have conventional sources
of funding," Jimenez said.
He said the regional investment zones can be operated by cities or by private
groups. They can be narrowly designated for a single project or industry, or
have a broader scope.
Jerkovic said Surprise s proposed EB-5 zone covers the entire city and is
focused on new technologies including solar, biotechnology and information
technology. She hopes it will help bring business investments into the West
Valley from markets such as Spain, Canada and China.
ADOC also has approved applications for investment zone designations from
Yuma, Florence and South Phoenix. Those are under consideration at the federal
level, Jimenez said.
But Rob Sanchez, author of the Job Destruction newsletter in Chandler, said
foreign investors sometimes get their green cards without coming through with
promised investments. He also questions the idea of the U.S.
government essentially selling green cards to rich investors.
"Foreigners come into the U.S. flashing big billfolds, but they rarely invest
the half- to $1 million they were supposed to," Sanchez said. "They usually
end up investing a fraction of the money, perhaps $10,000 in dubious
enterprises, and they have no intent to hire Americans."
Piggyback efforts
Surprise s efforts piggyback on those of Westmarc, which is seeking foreign
trade zone status for the West Valley. That status would bring state and
federal tax breaks for manufacturing, distribution and industrial companies.
Jack Lunsford, president of the economic development group, said getting
foreign trade zone status would help attract businesses from California. He
said federal agencies are reviewing Westmarc s application.
There currently are six foreign trade zones in the state, including parts of
Phoenix and Mesa. The West Valley trade zone would includes areas of Goodyear,
Avondale and Tonopah off Interstate 10.
Arizona s only EB-5 zone to date is operated by Scottsdale-based McDowell
Enterprises Inc. That zone encompasses Maricopa and Pinal counties and allows
for foreign investment in development and construction of medical buildings.
McDowell Enterprises is a developer of medical office buildings. Company
executives did not comment for this story.
There are 89 regional centers nationwide under the EB-5 program, according to
the Bureau of Citizenship and Immigration Services. Some of them are in Los
Angeles, Napa Valley and Riverside, Calif.; Las Vegas; Seattle; and Miami.
Get Connected
City of Surprise: www.surpriseaz.com
EB-5 Visa Program
What it is: Allows foreign nationals who invest a minimum amount of money
($500,000 or $1 million) in qualified U.S. businesses in approved regional
zones, and thus create at least 10 jobs, to receive permanent green cards.
Program also grants immigration visas to the foreign investors immediate
families.
What Surprise is applying for: The city wants the federal government to
designate it a regional center under the EB-5 program. Regional centers are
areas with high unemployment rates and job losses. Receiving that designation
lowers the EB-5 investment threshold from $1 million to $500,000.
The city s goal: The West Valley suburb wants EB-5 investors to put money into
solar, biomedical and information technology companies, including those at the
AZ TechCelerator, a city-managed business incubator.
Status: The Arizona Department of Commerce has approved the application. It
now is under consideration by the U.S. Bureau of Citizenship and Immigration
Services.
+++++++++++++++++++++++++++++++++++++++++++++++++++
http://www.jsonline.com/news/milwaukee/29556494.html
Asian funds sought for redevelopment
Pabst Brewing site owner seeks Chinese funding for international trade center
By John Schmid of the Journal Sentinel
Posted: March 28, 2008 |(0) Comments
The Pabst Brewing Co. complex, perhaps the most conspicuous symbol of
Milwaukee's urban decay, is reaching out for redevelopment funding from an
unexpected source: the Chinese.
The redevelopment of the 21-acre site is one of three projects in southeast
Wisconsin soliciting international investments under an obscure federal
program that was approved for the region less than a year ago. The program
offers U.S. residency rights to qualified foreign investors who invest at
least $500,000 and create at least 10 jobs in rural or distressed areas within
a designated "EB-5 Immigrant Investment Zone."
Pabst Brewing, which was founded in 1844 in Milwaukee, closed its brewery
11 years ago and outsourced the production of its Blue Ribbon brand. Since
then, the hulking remains of the Milwaukee brewery have become an urban
development headache.
But the site's current owner, real estate magnate Joe Zilber, wants to create
a Milwaukee International Trade Center as one of the first steps toward
breathing new life into the abandoned buildings. It would lease exhibition
space to foreign firms that want an import-export presence in the U.S., making
it a miniature version of Chicago's once-bustling Merchandise Mart.
The proposed trade center is still in the planning stages, but Zilber is
"guardedly optimistic" that it will attract Chinese investors, said Mike
Mervis, vice president of Zilber's Brewery Project LLC.
A second EB-5 Zone proposal could also result in investment at the Pabst site.
Milwaukee entrepreneur Robert Kraft, who is launching a private-equity fund
that will invest in companies and real estate projects in the zone, is in
talks with Zilber's brewery project to help finance the trade center. Kraft's
fund is meant to give foreign investors a place to park their dollars in
return for residency rights in a way that fulfills the EB-5 Zone criteria.
"If Bob Kraft is successful with his fund, it could have a huge impact on
Milwaukee's economy," Mervis said.
Kraft has made repeated trips to Shanghai, Beijing and Hong Kong to line up
agents who will represent his First Path Citizenship Investment Fund. He will
inaugurate the fund in May.
Of the three EB-5 projects, the one that's furthest along in terms of finding
prospective investors is a proposed hotel-and-entertainment complex in a rural
part of Walworth County. It has attracted five petitions for citizenship from
China and South Korea, said Peter Beitzel, vice president of the Metropolitan
Milwaukee Association of Commerce. Beitzel declined to name the person who is
organizing the Walworth County project until it receives its first federal
approval.
If any or all of those five applicants are approved by the U.S. Citizenship
and Immigration Services - approval could come within weeks - each will get a
temporary green card, and metro Milwaukee will have won its first EB-5 Zone
investment.
"This is one way to revitalize the greater Milwaukee area," said Stephen W.
Yale-Loehr, who teaches immigration law at Cornell University and is an
authority on the sort of foreign-investment zone that metro Milwaukee has
created.
Green card incentive
Green cards are no small incentive at a time when the backlog for many U.S.
visa classifications extends for years, and many are never granted at all
under caps that Washington has imposed on immigrants. Citing U.S.
Department of State data, Yale-Loehr said a visa applicant from India who
holds a four-year college degree faces a waiting list of at least six years
before getting a visa - even if an American employer is willing to hire him or
her immediately.
At the same time, business leaders embrace foreign funding as never before, as
American banks scale back their lending in reaction to the national mortgage
crisis.
Qualified investors from almost any part of the world can apply for residency
under an EB-5 Immigrant Investment Zone, so named because it hinges on a class
of visa called the EB-5. But much of Milwaukee's efforts currently are
centered on luring well-heeled Chinese. The Metropolitan Milwaukee Association
of Commerce took the initiative to create an EB-5 Zone earlier in the decade
when China's economic ascent was leading to factory shutdowns across the
Midwest.
Congress authorized the creation of EB-5 zones in 1992, but it took a decade
before the concept found adherents, not least because Washington tinkered with
the provision for visa allocation for years, creating shifting bureaucracy and
confusion.
The United States has 17 active EB-5 zones. In the Midwest, the closest are in
Iowa and South Dakota, and both of those are meant for rural and agricultural
investment. None in the Midwest is in urban industrial areas outside
Milwaukee, said Yale-Loehr, who chaired an EB-5 investors committee of the
American Immigration Lawyers Association.
Those 17 all compete with each other for foreign investment, vowing on
multilingual Web sites to shepherd each applicant through the maze of federal
bureaucracy. The Association to Invest in USA, a trade association of EB-5
zones, estimates that the 17 zones could bring in a total of $1 billion in
foreign investment this year.
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