The Hamilton County Commission has unanimously passed tax break deals for a housing development on Chestnut Street and for a car chassis builder at Enterprise South industrial park.
Commissioners first OK'd a tax break for a 210-unit apartment complex at 1400 Chestnut St. The Alabama-based developer, Kore Co., will spend $23.6 million developing the property. The company's share of property taxes for general government will be frozen for 10 years, from 2017 to 2026, althoughKore will pay its full share to county schools. The land is currently assessed at $162,560. After 10 years, tax payments will increase by 20 percent a year over four years.
In a separate resolution, the commission unanimously approved a payment-in-lieu-of-tax agreement for Gestamp, an auto chassis manufacturer that supplies Volkswagen, BMW, Mercedes and others. Under the agreement, the company will spend $180 million on an expansion and a new facility in Hamilton County. The investment is expected to bring 510 jobs to the area.
In return, Gestamp will pay no taxes on the expansion for the first year of the 10-year agreement. It will then pay 25 percent in year two, 40 percent in year three and 50 percent in years 4 through 10. School taxes would be paid the entire time.
The city of Chattanooga passed the Gestamp PILOT on Tuesday. The City Council gave approval to the Chestnut PILOT early this month.