LOUDON — The Loudon County
Commission and the Loudon City Council voted to
grant payment in lieu of taxes, or PILOT,
incentives to two projects in a special called
meeting Monday, including a multimillion-dollar
plan promising to bring hundreds of jobs to a
vacant spot in a county industrial park.
The 10-year plan for delivery van
maker Morgan Olson will invest about $45 million
to occupy the vacated John Deere building in the
Matlock Industrial Park.
County Economic Development
Agency executive Pat Phillips told the council
and commission that Morgan Olson would probably
hire 400 workers quickly, with the possibility
of reaching a total of 500 or more jobs in two
to three years. The increase in hundreds of
good-paying jobs — averaging about $20 per hour
— will reduce unemployment and raise average
wages in the county, Phillips said.
Morgan Olson is probably the
second largest project in the region in the past
few years, Phillips said. The company now lists
job openings in Tennessee, including buyers,
planners, schedulers, engineering managers and
supervisory positions.
The company will receive a
10-year tax break with an annual lease payment
of $122,832. The PILOT would begin in January
and continue through December 2025.
"What will this cost us?"
Commissioner Henry Cullen asked.
Phillips said the cost to the
county in lost taxes could be about $71,000 and
the cost to the city about $45,000. The offset
would be the creation of hundreds of jobs and
increased sales tax revenue.
County Mayor Buddy Bradshaw said
he supports the deal because of the immediate
benefits and his faith that Morgan Olson is
committed to the project. "I think this has room
to grow," he said.
Loudon Mayor Joey Greenway said
he expected to see more cars on the road and
more revenue from gas stations in the town.
Commissioner Van Shaver said he
was concerned the county was acting in haste. He
said he believes the company would have come to
the county regardless of the tax incentives.
"We're just giving it away. I believe a better
deal could have been had," he said. The deal is
better for the city, which collects sales tax,
than for the county, which has the burden of
funding the school system, he said.
The two bodies also voted to
grant a 5-year PILOT for Van Hoose Co., a maker
of concrete fixtures, in exchange for a $12
million new investment that would create 50 or
more jobs.
Shaver said the Van Hoose Co.
deal was an example of setting the bar too low.
More, smaller companies are going to be asking
for tax deals in the future, he said.
Commissioner Shaver voted NO on both PILOTs.
10/22/15
10/22/15