With Loudon City Council approving in June a payment in
lieu of taxes agreement with Tate & Lyle, Loudon County
Commission will take up the topic this month and
possibly end a property tax dispute dating back to 2011.
Commissioners were scheduled to speak to Property Assessor Mike Campbell during the June workshop, but due to his absence, delayed the meeting until later this month.
As part of a potential agreement between the county
and Tate & Lyle, the company will pay $2 million per
year over a 10-year period. Of the $2 million, the
county will receive $1.225 million.
The plant plans to invest in a $66 million,
50-megawatt combined heat and power system that
would improve the company’s competitive position and
improve air emissions.
Pat Phillips, Loudon County Economic Development
Agency executive director, said the county will
receive $100,000 per year for the Tate & Lyle
natural gas pipeline, which will be in addition to
the $1.225 million.
“They’ve been pretty cordial,” Loudon County Mayor
Rollen “Buddy” Bradshaw said about ongoing talks
with Tate & Lyle. “They’ve gotten heated at times,
but we’ve stayed in communications, and I think
we’ve reached a happy medium. I think that it’s
going to end up being a good deal for the county and
the city both.”
Bradshaw said he, Phillips and Loudon City Manager
Lynn Mills have been in talks with Tate & Lyle
representatives for months, even going to Chicago
during the winter to help “get the ball rolling.”
“... Mike (Campbell) is integral in this program as
far as figuring out what we will get over 10 years,
what we could potentially lose over 10 years, how it
relates to the assessment lawsuit that they have
filed,” Van Shaver, county commissioner, said. “So I
guess I’m going to reserve judgment until I hear the
numbers from Mike Campbell.”
While Shaver said he would reserve a say in which
way the county should move forward until after the
workshop, he acknowledged putting a decision in the
hands of a judge could prove unpredictable.
“I do know one thing, it doesn’t matter what you
think, anytime a lawsuit goes to court and a judge
hears the case it’ll be the judge’s decision, and
those things can go any direction,” Shaver said.
During the Loudon City Council June workshop, Mills
said the city will receive $775,000 of the $2
million. The vote was passed 3-2 in favor of the
agreement during last month’s meeting.
“You can either take this deal or go to court and
take your chances. That’s going to be the decision,”
Henry Cullen, county commissioner, said. “I don’t
know what the tax appeal’s going to end up. Loudon
went with it, and you know what, I haven’t spent a
whole lot of time on that. We’ve been kind of busy
on other stuff.”
County Commissioner Leo Bradshaw said from what he
has seen of the agreement, and after talking further
about the proposal with Phillips, it seems like a
“win-win” for both the county and Tate & Lyle.
“They’re a good corporate citizen (with) big
improvements as far as the air quality and lots of
good things happened in the last few years, so I
think if you go to a court system you have a 50-50
chance of winning,” Leo Bradshaw said. “Some say
we’re favored to win and some say, well, it could go
either way. It’s according to the judge and the
information and how well they know the problem.
“So I’d feel more comfortable with settling, coming
up with an agreement that we both can live with and
move on because they’re wanting to do some
improvements and add some additional operations to
their plant as far as increasing employees and
growing the operations,” he added. “So I think if we
consider that in the long term we will come out
better economically than we would by pursuing this
in the legal system.”
Moving forward with the agreement would take Tate &
Lyle out of the dispute and leave only
Kimberly-Clark, Buddy Bradshaw said.
“The ball would be in their court would be the best
way to put it,” he said.
Property value assessments this year are $55,759,700
for Tate & Lyle and $46,119,800 for Kimberly-Clark,
Campbell said. If commission doesn’t approve the
payment in lieu of taxes agreement, and the county
and city lose the tax appeal, Campbell said there
would be a combined loss in taxes of $727,000, with
Kimberly-Clark’s portion at more than $420,000.
Commission will meet at 6 p.m. July 20 at the county
office building. The board will also meet at 6 p.m.
Aug. 3 at the Loudon County Courthouse Annex for a
vote on the tax agreement.
“Tate & Lyle is just such a big positive for our
county and is such a good partner with Loudon County
that we want to do what we can to make sure and keep
them where they are and keep them doing the job that
they’re doing and employing the folks that they
employ,” Steve Harrelson, commission chairman, said.
“So I think it’s important for county commission to
look seriously at the PILOT and see what we can work
out to let them do the continued growth that they’re
doing now and going to do in the near future and
help the citizens of Loudon County.”