Paving of the first roads around Chattanooga’s Volkswagen auto assembly plant is expected to start soon, officials said Tuesday.
City Engineer Bill Payne said Talley Construction Co. of Rossville, Ga., has won a $6.2 million contract to pave gravel roads that ring the plant and smaller arteries connecting its buildings.
“The majority of these roads are temporary construction roads,” he told the city’s Industrial Development Board. “They’ll be adding paving and curbing.”
The city and Hamilton County will split the cost of the low-bid Talley contract, Mr. Payne said.
December sales jump
Volkswagen of America Inc. on Tuesday reported December 2009 sales of 20,387 units, a 16 percent increase over a year ago.
The Jetta, its top selling nameplate, posted a 26.9 percent increase over December 2008, according to the car company.
“December’s performance was encouraging, as was the six consecutive months of sales growth that we have experienced. During those six months, Volkswagen sales increased 8.2 percent over the same period of last year,” said Mark Barnes, chief operating officer.
certificate granted
Steve Leach, the city’s public works administrator, said the first building at the $1 billion plant to be occupied will be the VW Training Academy. He said a certificate of occupancy was granted Thursday, though VW employees aren’t expected to start moving into parts of the $40 million training center for a week or so.
“That’s huge for us to have that project moving forward,” Mr. Leach said.
He said training center equipment is being moved into the state-of-the-art facility.
“Now it’s looking like offices, labs and a technical center,” the city official said.
Meanwhile, members of the development panel overseeing many of the contracts for construction of the 2 million-square-foot plant pressed officials about whether more public money will be needed for the facility.
City Finance Director Daisy Madison said all spending categories are under budget.
“That’s good news,” said Ted Mills, the board’s chairman.
Richard Ebersole, the board’s vice chairman, questioned how likely it is that the budget will be exceeded.
budgeting cautions
Mr. Payne said the city is working with VW to make sure the funds allocated by Chattanooga, Hamilton County and the state won’t go over budget.
The city, county and state have committed spending $235 million for the VW project as part of the incentives to woo the German automaker.
Ms. Madison said there are no dollars to fund spending over the budget.
“If there is a need to go over it, the source of funds will be identified,” she said.
The plant, which is to employ 2,000 workers, is slated to start producing vehicles in early 2011.