Ringgold votes to annex Shaw plant

Ringgold votes to annex Shaw plant

January 29th, 2013 by Tim Omarzu in News

Shaw Industries in Ringgold

Photo by Margaret Fenton

RINGGOLD, Ga. -- It's routine for Catoosa County businesses to be annexed inside Ringgold city limits as they connect to the city's sewer system.

A milestone occurred Monday night, as the City Council voted unanimously to annex a Shaw Industries flooring plant at 388 Armstrong Road and two other businesses.

Extending sewer service to the factory was one of the incentives that county and city officials made to persuade Shaw Industries in 2009 to spare it from the chopping block, and instead close a factory in Algona, Wash., and consolidate operations in Ringgold.

"One of the things we had to do to keep it open was to get sewer to that plant," County Attorney Chad Young said prior to the meeting.

Special purpose local option sales tax money, a 1 cent tax per $1 of sales, will fund the $5 million expense to extend sewer lines more than three miles from Christian Road along the west side of Interstate 75 to south of U.S. Highway 41.

The county also offered the plant tax abatements, Young said.

Prior to the meeting, County Commissioner Keith Greene said, "That's the big thing: Making sure we still have jobs in the county."

Ringgold City Manager Dan Wright said the city would gain $8,241 annually from annexing the three properties.

"We're not going to get rich off this; don't fool yourself," Mayor Joe Barger said at the work session before City Council met.

Barger predicted services provided by the city would lead it to break even, at best, on the annexed properties.

The breakdown of Ringgold's new tax revenue is as follows: $6,267 from annexing the 50-acre Shaw plant, $1,179 from annexing the Ringgold Truck Center on eight acres at 458 Armstrong Road and $975 from annexing a Kangaroo gas station on three acres at 11400 U.S. Highway 41.

The county will continue to get the same amount of property tax from the annexed properties, Wood said.

Contact staff writer Tim Omarzu at tomarzu@timesfreepress.com or 423-757-6651.