Three years after Yale Locks & Hardware’s parent
company Assa Abloy closed the Lenoir City plant and
relocated to Berlin, Conn., the 222,000-square-foot
building has been leased to a new company that plans
to open shop early this year.
Assa Abloy reached a long-term lease agreement with
East Tennessee logistics company R&S Logistics. The
lease went into effect Jan. 1.
David Schmid, R&S Logistics president, said the
facility will be fully operational toward the
end of the first quarter of 2016. While he would
not disclose the terms of the contract, he said
the agreement is “long term,” and the company
will be part of Loudon County for “years.”
“We’re strong in Loudon County, and we’ve been
growing (and) needed more space, and we’ve been
looking, talking to Yale really for the last
year,” Schmid said. “You probably know — I think
most of there’s a little bit of history there
with some environmental issues. The property has
been under the direction of TDEC, Tennessee
Department of Environment and Conservation.
Yale’s gone to great lengths to do their part in
cleaning up.”
Schmid said the company still needs to do some
work on the site, including installing a new
sprinkler system, rinsing the outside walls,
fixing roof leaks and getting the heat online.
Overall, the property needs “just lots of
renovation and (upgrades) just to get it
functional for our purposes to run a logistics
company out of there,” he said.
“It just needs some TLC,” Schmid said. “It’s
been basically shuttered for the last three
years I guess or almost two (or) three. I’m not
sure when the last person walked out of there. I
think it’s 2012, and so just getting it back
online. We’ve done major cleanup, some repair
work, just basically sort of pulling it out of
the boneyard, so to speak. It’s just been sort
of a mothball.”
Schmid said the property will be utilized for “a
lot” of movement and production distribution.
With this addition, he said the company will
have four locations in Loudon County.
“We had to make sure it was safe. Yale wanted to
make sure it was safe,” he said. “TDEC wanted to
make sure, wanted to know how it was going to be
used. No one was really excited about any new
manufacturing because manufacturing brings more
hazardous materials into play. You have
chemicals and things that go with manufacturing,
and so that is really not suited to — at this
point for manufacturing, but it’s well suited
for (a) distribution facility. We’re going to
clean it up, get the flag back up, get the
landscape spruced up.”
In a previous interview, Loudon County Economic
Development Agency Executive Director Pat
Phillips said prospective companies that
considered the site shared concerns about the
building’s ceiling heights and its environmental
footprint, with one primary issue being
groundwater contamination.
The property will help meet the third-party
company’s growing demand for additional space
for its customers, Schmid said.
“It’s going to look good the way it did when
Yale operated it,” Schmid said. “It’s right
there at the front of the business park, and
we’re in — we’ve got another facility right
behind it on Industrial Park Drive, so we’re
just excited to see it doesn’t become kind of an
eyesore for the neighborhood, and we get to play
a part in it.”
The addition will “definitely” bring some jobs
into Loudon County, but Schmid said he was not
sure how many. R&S Logistics added another
facility last year on Maremont Parkway in the
former MSI building that is being shared with
sister company Fort Defiance Industries. Schmid
said 15 jobs were added at Fort Defiance, with
more to be brought on board this year.
“The Yale facility doesn’t have a job count,”
Schmid said. “It will be small job growth, not
huge. It’s not a building that unfortunately
really can’t be set up as a manufacturing
operation just yet because of some of the TDEC
issues and things. So it’s more distribution,
and the people count’s not real heavy.”
Lenoir City Mayor Tony Aikens said city
officials were “very excited” to have a company
utilize the old Yale Locks building, and he
hopes the new facility will bring more jobs.
Loudon County Mayor Rollen “Buddy” Bradshaw said
any job additions should be a positive for
Lenoir City and Loudon County.
“It’s never good if it’s going to sit empty, and
so that’ll — regardless of the amount of jobs,
it’s just great to have some jobs in there,”
Bradshaw said.
Filling the building will be a benefit for the
county, Phillips said.
“We are very pleased that Assa Abloy and R&S
have been able to reach an agreement on a lease
that allows for the reuse of the facility, since
vacant buildings bring no economic benefits to
the community,” Phillips said in an email
correspondence.
Currently, about 50,000 square feet of the
facility is being used to receive freight while
work is still being done, Schmid said.
“Yes, it’s operational and continuing to grow
just about every day as we just move along,”
Schmid said. “We’ve got a very aggressive
schedule and a lot of people working in there to
getting it finishing it up, just sprinkler
testing and all the things you have to do. It’s
functional, and it’s open. If there’s people
needing warehouse space, we have vacancy.
“We’re taking care of our customers to grow our
presence in Loudon County, and we certainly have
room for people who are needing our services,”
he added.