The Hamilton County Commission approved a tax break today for HomeServe USA's East Brainerd $5.7 million expansion plans.
The company, which sells monthly major household repair plans to homeowners, has operated a call center in Chattanooga since 2010.
Commissioners voted 8-0 to enter into the a five-year payment-in-lieu-of-taxes [PILOT] with the company. Commissioner Tim Boyd was absent.
"We're really proud that HomeServe's going to be expanding once again in Hamilton County," Hamilton County Mayor Jim Coppinger said after the commission's vote. "They are one of those types of companies that when you recruit them, they start relatively small and they grow."
Charles Wood, vice president of economic development for the Chattanooga Area Chamber of Commerce, discusses a tax break proposal for HomeServe USA with the Hamilton County Commission.
The PILOT abates 100 percent of new property taxes generated by the company's planned 46,00-square-foot facility in the first year of the agreement. The drops to 75 percent in the second year and 60 percent in the third year. Property tax payments level out at 50 percent for the last two years of the PILOT.
In return for the tax break, HomeServe promises to add 192 more people to its staff of over 300 employees.
Last week, Charles Wood, vice president of economic development for the Chattanooga Area Chamber of Commerce, told Hamilton County commissioners most of the new jobs will require only a high school degree but pay an average of $17 an hour, or more than $35,000 a year. About 60 of the jobs, which include back office and management positions, boost the overall salary average of the 192 jobs to $39,250.
"If you think about folks who are working at some of the call centers like Convergys, that might be at a lower wage or getting experience, this will give people the opportunity to move up the wage ladder, if you will," Wood said.
The Chattanooga City Council approved a similar agreement with HomeServe yesterday.
Contact staff writer Paul Leach at 423-757-6481 or pleach@timesfreepress.com. Follow him on Twitter @pleach_tfp.