The Chattanooga Industrial Development Board approved a $500,000 tax break for the expansion of an 87-year-old Chattanooga company recently, and that has left some residents questioning whether tax relief designed to bring growth to the area should be given to companies that already have deep roots.
The city and county governments approved the eight-year payment in lieu of tax agreement for an $18.1 million expansion at Southern Champion Tray last month, and the IDB put the final OK on the PILOT on Dec. 15.
Southern Champion Tray, which opened in 1927, is one of more than a dozen established local companies that have been granted PILOTs for expansions since 2008, according to Chattanooga Area Chamber of Commerce records from July 6. That group includes Alstom TMG, Chattem, Unum, Coca-Cola Bottling and others.
It’s one of 20 commercial PILOTS active in the city, but five will end this year. A PILOT for SIAG Aerisyn, a wind turbine company, is technically on the books, but that company went under in 2012.
County Mayor Jim Coppinger said there is no limit to how many PILOTs the county will enter. Each one is taken individually. If the job creation and investment numbers are strong, the county will move forward with the tax relief, he said.