Malibu seeks tax deal for expans

Malibu Boats is considering an investment that could create as many as 200 new good-paying jobs, Loudon City Council learned Monday at a workshop.

Loudon County Economic Development Agency Director Jack Qualls told council Malibu had requested a Payment In Lieu of Tax deal that would support the construction of a new 30-acre, $40 million facility off Highway 11 in the Sugar Limb Industrial Park in Loudon.

The five-year deal would provide a 50% tax break that would have to be approved by council at a Jan. 24 meeting. The 175 to 200 new jobs are expected to pay $18 to $24 per hour, Qualls said.

City Manager Ty Ross said the site has power lines that must be moved, and Malibu will be responsible for moving the lines. The PILOT will help Malibu cover some of these costs, he said. “It’s something we’re proud to participate in,” Ross said. Loudon Mayor Jeff Harris agreed.

Malibu, one of the leading manufacturing companies in the Knoxville area, has been wanting to expand for some time, Harris said.

“They’ve been limited at that site,” he said.

The expansion will also bring a much needed traffic light at the park entrance on Highway 11. Traffic at the intersection has been a “nightmare” for some time as hundreds of workers try to enter and exit daily, Harris said.

Malibu had not responded to requests for comment by presstime.

In an unrelated matter, Qualls updated the council on the state of the Loudon lakefront development agreement. The city will transfer land for the development within two weeks and rezoning for 150 new rental units will be complete.

The first phase of the development should begin in about 12 months and be complete within 36 months.

Qualls assured council the agreement with developer Dover Signature Properties will have a “clawback” provision to assure the project is completed as negotiated.

Council also heard more details of a proposed 12-month Memorandum of Understanding that would subcontract promotion and development of downtown Loudon businesses and the Courthouse Square Program through the Loudon County Chamber of Commerce at a cost of about $35,000 per year.

Some on council pushed back at the proposal, suggesting Loudon could better spend the money by managing the program itself.

“I’m not a huge supporter,” Tammi Bivens, council member, said. “We’re taking our funding and giving it to the county.”

Bivens said she is a downtown Loudon business owner who is not a member of the chamber. She claimed other businesses are skeptical of putting the chamber in charge of the program.

“They are focused on the county and we are focused on the city,” Bivens said.

Mayor Jeff Harris said the MOU was just a proposal that council could vote to accept or reject.

At the end of the meeting, council withdrew into executive session for about 15 minutes to discuss an issue regarding possible litigation. Ross said if the issue turned into actual litigation the filings would be made public.