Wheeler, Nevada
Response to the following problem:
The city council of Wheeler, Nevada, is faced with an important decision: whether or not to rezone a parcel of property and allow ChemStor, Inc., to purchase the land and build a chemical waste storage facility on the property. Several factors enter into the decision.
a. The property is currently zoned for agricultural use and is surrounded by ranching operations in a rural community.
b. Several ranchers have joined together and offered to buy the property from the city over a 40-year period. In return for an agreed-upon interest rate of one point below prime, they will donate 20 acres of the land for a city park.
c. ChemStor has offered to pay cash for the land. Company management also points out that the facility will create about 25 new jobs for local residents and generate close to $100,000 a year in increased property taxes for the city.
d. ChemStor, a New Jersey-based company, learned of this property from its controller, who is a brother-in-law to one of the Wheeler City council members. ChemStor has offered a "finder's fee" for locating a waste storage site. The finder's fee would be split between the controller and the brother-in-law.
Identify the ethical and other issues involved in this capital investment decision.