Chamber of Commerce Vice President Charles Wood on Tuesday told members of the City Council that Chattanooga has lost some large manufacturing plants because other cities offered better incentives.
He said in one case another city offered the prospect $910,000 in cash - paid out over several years.
Mr. Wood appeared at a committee session to answer questions about PILOTs (payment in lieu of taxes) tax abatements.
Councilman Anthony Byrd said some citizens feel that Chattanooga is such a hot city for business and for quality of life that tax abatements are not necessary to get companies here. Mr. Wood said the city is doing well, but the incentives are still necessary in some cases.
He said the city lost out on one prospect in the last 60 days. He said a Chattanooga company moved to Texas for a new plant because of what was offered there.
On transparency about what the city and county offers to industrial prospects, he said if too much information is given away it can hurt in negotiations. He said prospects can study what PILOTs have been given before and demand similar terms.
Despite those misgivings, Chairman Ken Smith told Mr. Wood that policies about PILOTs need to be placed on a public website.
Mr. Wood said that would be done after consultation with the two mayors.
Councilman Chip Henderson said of information on PILOTs that have been approved, "We never get any reports on those." Mr. Wood said those are available.
Councilman Russell Gilbert said it his understanding that through the PILOTs at the end of the day "the city will be doubling and tripling our money" through much higher tax income. He said, "I want to make sure that's happening."