LOUDON — The Loudon County Commission and the Loudon
City Council voted to grant payment in lieu of taxes, or
PILOT, incentives to two projects in a special called
meeting Monday, including a multimillion-dollar plan
promising to bring hundreds of jobs to a vacant spot in
a county industrial park.
The 10-year plan for delivery van maker Morgan Olson
will invest about $45 million to occupy the vacated John
Deere building in the Matlock Industrial Park.
County Economic Development Agency executive Pat
Phillips told the council and commission that Morgan
Olson would probably hire 400 workers quickly, with the
possibility of reaching a total of 500 or more jobs in
two to three years. The increase in hundreds of
good-paying jobs — averaging about $20 per hour — will
reduce unemployment and raise average wages in the
county, Phillips said.
Morgan Olson is probably the second largest project in
the region in the past few years, Phillips said. The
company now lists job openings in Tennessee, including
buyers, planners, schedulers, engineering managers and
supervisory positions.
The company will receive a 10-year tax break with an
annual lease payment of $122,832. The PILOT would begin
in January and continue through December 2025.
"What will this cost us?" Commissioner Henry Cullen
asked.
Phillips said the cost to the county in lost taxes could
be about $71,000 and the cost to the city about $45,000.
The offset would be the creation of hundreds of jobs and
increased sales tax revenue.
County Mayor Buddy Bradshaw said he supports the deal
because of the immediate benefits and his faith that
Morgan Olson is committed to the project.
"I think this has room to grow," he said.
Loudon Mayor Joey Greenway said he expected to see more
cars on the road and more revenue from gas stations in
the town.
Commissioner Van Shaver said he was concerned the county
was acting in haste. He said he believes the company
would have come to the county regardless of the tax
incentives. "We're just giving it away. I believe a
better deal could have been had," he said. The deal is
better for the city, which collects sales tax, than for
the county, which has the burden of funding the school
system, he said.
The two bodies also voted to grant a 5-year PILOT for
Van Hoose Co., a maker of concrete fixtures, in exchange
for a $12 million new investment that would create 50 or
more jobs.
Shaver said the Van Hoose Co. deal was an example of
setting the bar too low. More, smaller companies are
going to be asking for tax deals in the future, he said.