$50 million investment to create 200 jobs, riverfront greenway for residents
Chattanooga City Council today approved a 10-year Payment In Lieu of Taxes (PILOT) program for Kordsa Inc.’s $50 million expansion of its manufacturing facility in Hixson, a project that is expected to create 200 high paying jobs and provide new riverfront greenway access for residents. Already approved by Hamilton County, Chattanooga’s Council sign-off ratifies the agreement with Kordsa.
“This is a win-win for the people of Chattanooga and for Kordsa, and I’m confident that the value our community will realize through this project and through our continued partnership with Kordsa will span long beyond the time horizon of this program,” said Chattanooga Mayor Tim Kelly. “When you look at this $50 million investment in a broader context – beyond the 200 direct and over 400 indirect jobs it will create, the more than $39 million annual direct and indirect wages and benefits, or the estimated $83 million single-shot economic benefit to Chattanooga – you realize that success really does breed success: The total investment in the old DuPont property now exceeds $150 million, and the North River Commerce Center is becoming a premiere commerce corridor for our city.”
As part of the agreement, Kordsa is committing to partner with the BuildWithin Apprenticeship Initiative and Chattanooga 2.0, to publicize the new job opportunities to attract local workers, and to make the construction opportunities available for local contractors.
Kordsa will also partner with the City through this project to provide greenway access to the riverfront, which will add to Chattanooga’s 35 miles of trails and greenway and provide residents with another avenue to connect with and to enjoy the beauty of the city.
Under the PILOT, Kordsa will get a 100 percent tax property reduction the first year, 75 percent the second year, 60 percent the third year, then 50 percent per year for the remainder of 10 years. The company will continue to pay property taxes on all existing operations as well as continue to pay 100 percent of school taxes throughout the term of the PILOT and beyond.
Korda’s expansion, in conjunction with another nearby project, is expected to bring the total number of workers around North Access Road to more than 1,000.
“It wasn’t too long ago that Chattanooga could have been passed over when it comes to opportunities like this one, and the economic benefits would have gone to another city or another state. But those days are gone, and our commitment to busting blight and bringing good paying jobs across the city and region is paying off,” added Mayor Kelly.