Yes, but every time the factory proposes that initiative the 1,000 downwind voters can also counter-propose that the factory continue to scrub the exhaust AND for the factory to pay $1,000 to some initiative they do support.

The 1,000 downwind voters collect 1,000 votes of the counter-proposal and the factory has to either make up the cash for 1,001 votes or implement the counter-proposal. Whichever is more economically viable for the factory.