Lenoir City approves three-year

Lenoir City Council approved Monday a payment in lieu of tax agreement for a new industry.

Jack Qualls, Loudon County Economic Development Agency executive director, presented a resolution for a three-year PILOT with an annual payment of $19,381.

“This is really to offset the infrastructure costs associated with the development of their facility,” Qualls said.

The “marine-type accessory” manufacturer anticipates $5 million in capital expenditures and the creation of 30 new jobs with an average hourly wage of $17.97.

“This company is going to bring in approximately 35 jobs immediately,” Tony Aikens, Lenoir City mayor, said. “They’re going to have another 30 jobs or so over the next three years — they’re $18 an hour. They’re moving from Knoxville to relocate to Lenoir City. I think that says something for Lenoir City personally. It incentivizes the other companies hopefully come to Lenoir City and bring good-paying jobs and that’s something that we all want.”

Councilman James Brandon and Councilwoman Jennifer Wampler motioned and seconded, respectively, to move forward with the PILOT. The vote passed 5-0, with Councilman Douglas “Buddy” Hines absent.

The agreement will now go before the local industrial development board for consideration.

“It further incentivitizes companies to locate here, to offer job opportunities, to further economic development and growth for the betterment of our community and for our citizens,” Amber Scott, city administrator, said of why the city considered the PILOT.

According to the resolution, the manufacturing company will be located “generally around” McGhee Boulevard.

“They talked to me several months ago,” Aikens said. “I told them if they would relocate to Lenoir City that I would do everything in my power to get them tax incentives to help with the gas line that needs to go in, and they’re excited about it. They’re a very reputable company and we’re glad to see them here.”

Before a vote, Councilman Eddie Simpson wanted to ensure future PILOTs would come before the city first.

Qualls said they would.

In other news, Lenoir City Council:

• Presented a proclamation honoring former Councilman Bobby Johnson Sr. for his service on city council. Bobby Johnson Jr. and other family members accepted the honor.

• Passed the second and final reading to repeal Lenoir City municipal code entitled “Taxicabs.”

• Approved going to bid for a commercial waste collection contract, with the current contract expiring Feb. 11, 2021.

• Approved expenditure for resurfacing the entire length of the 700 block of West 5th Avenue. Patty Construction/Greenback Asphalt Company will handle the project for $9,900.