Local Governments To Provide $52.5 Million In Incentives For VW Expansion

Wednesday, July 16, 2014

The city and county are agreeing to provide $52.5 million in funding for the Volkswagen expansion at the Chattanooga plant.

The state is providing a $165.8 million grant for infrastructure costs as well as $12 million for worker training.

VW commits to spend some $200 million for real property improvements and some $400 million for equipment.

Volkswagen is to receive a real property and personal property tax abatement, but will pay the school portion. It will pay an economic development fee of $250,000 per year for 10 years.

VW reserves an option on an additional 1,200 acres, but is releasing back to the city and county 300 acres.

The plant will hire some 2,000 additional employees for the production of a new mid-size SUV and for a research and development center.

County Mayor Jim Coppinger said the County Commission will be asked to have a special meeting next Wednesday to approve the memorandum of understanding. He said it must be approved by July 29. He called it "a really good deal for Hamilton County."

County Commission Chairman Fred Skillern said, through good money management, "We will be able to do this without even considering a tax increase."

Click here to read the Memo of Understanding.



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