Forming Invest Chattanooga, Novonix PILOT vote

Invest Chattanooga would be housed within the Chattanooga Housing Authority, but its board of directors would have sole control over the housing fund.

Housing developers would receive loans from the fund to help cover construction costs. In exchange, developers would have to make some units affordable to renters at various income levels.

Novonix PILOT

Council members will vote on approving a payment-in-lieu-of-taxes (PILOT) agreement between the city and Hamilton County and Novonix, the battery manufacturer.

The agreement includes Novonix’s $4.6 million purchase of a 182-acre, city- and county-owned property at Enterprise South Industrial Park.

Per the PILOT terms, Novonix would receive tax breaks over 15 years in exchange for investing at least $800 million into a facility expansion on the purchased property and creating at least 400 new jobs by summer 2030.

In a public hearing on the PILOT last week, Novonix CFO Robert Long appeared before Council “to apologize for the surprise” of recently firing 19 employees.

While Council members said they understood the layoffs from a business perspective, they expressed concern about the decision’s timing ahead of their vote on a large tax incentive based on job creation.

“You’re up here before this body asking for something called a jobs PILOT after just laying people off,” said Councilman Ken Smith, District 3. “It’s a bad look. It’s bad faith. It creates a matter of distrust.”

Council members Jenny Hill, District 2, Smith, and Darrin Ledford, District 4, asked for further assurance from Novonix about the PILOT’s jobs agreement, which requires hundreds of new positions at Enterprise South.

Appointments

Council will vote on appointing Marcus Cade-Johnson to the city’s Industrial Development Board (IDB).

The IDB executes PILOT and Tax Increment Financing agreements, which involve tax incentives and public funding for businesses and developers.

Mayor Kelly looks to appoint Melody Wingfield as Chief Human Resources Officer for the city.

Harley donation

The Chief of Police looks to donate a 2009 Harley Davidson motorcycle to the Cohutta Police Department.

Attend this week’s meeting

When: Tuesday, Jan. 21 at 3:30 p.m

Where: City Council Building, 1000 Lindsay Street, Chattanooga, TN 37402

Or: Watch the meeting live on YouTube @chattanoogacitycouncil8743

Chattanooga City Council is open to the public.

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Contact William at william@chattamatters.com