Southern Champion Tray on Monday won property tax breaks valued at about $500,000 from Chattanooga’s Industrial Development Board for the company’s planned expansion in the city.
Charles Wood, the Chattanooga Area Chamber of Commerce’s vice president for economic development, said the company had been considering its Dallas-Fort Worth location for the expansion as well.
“It’s a legacy company in Chattanooga,” said Wood about the business that was founded in 1927 and makes bakery and food packaging items.
The payment-in-lieu-of-tax agreement will run from 2015 to 2022. The tax breaks will range from 25 percent to 50 percent of what the business would otherwise pay over the seven-year period. The tray maker will pay all of the county school taxes, according to officials.
Southern Champion plans to invest $18.1 million and add at least 105 employees over three years. The business expects to have about 565 workers in Chattanooga after the expansion. The jobs will range from truck drivers to entry-level posts.