NASHVILLE – The State Building Commission Thursday approved a $168.86 million infrastructure grant for the Volks- wagen plant expansion in Chattanooga.
But the actual grant’s language will first have to be reviewed by the state’s bond counsel. The Building Commission also gave similar approval to a $35 million grant for development and associated upgrades of the Nissan Supplier Park in Smyrna.
The money for Volks- wagen’s Chattanooga plant are a part of state incentives that were promised to get the German auto manufacturer to locate its planned line of SUV production in Tennessee instead of Mexico.
For legal purposes, the actual grant actually goes to the city of Chattanooga’s Industrial Development Board.
The five-year VW grant, included in Gov. Bill Haslam’s 2015-2016 budget, permits reimbursement of expenses the company incurs with regard to infrastructure, site development, equipment, facility construction and “all related work,” according to State Building Commission documents.