The city Industrial Development Board on Monday voted 5-3 to provide $102,500 to a local firm to help in its worker recruitment.
The funding is to go to AIS Enclosure Systems, which plans to add 82 new jobs with a $8.3 million plant investment.
The county earlier agreed to provide the same amount for the program.
Adam Myers, Chamber of Commerce vice president for economic development, said Chattanooga was competing against other cities to retain the company.
He said the grant program is another tool to incentivize companies to stay in Chattanooga when the project does not meet the standards for a PILOT (payment in lieu of taxes) tax relief.
The funding comes from the economic development fund that includes fees paid by businesses. The fund currently has $2,617,733.
The IDB also agreed to donate $50,000.00 from funds appropriated from the city of Chattanooga for the purpose of advancing workforce development in the technology sector, to the Chattanooga Chamber Foundation for a Workforce Development Tech Accelerator Program.
The program is to help individuals obtain jobs as data analysts with such help as evening classes and child care.
Helen Burns Sharp, taxpayer advocate, praised the staff for beginning to provide staff reports on various agenda items.
She also said IDB members should be asking these questions:
:
Whose Program is this? Is it a city/county program or a chamber program?
- If this is a city program, did the Council pass an ordinance establishing and describing the program? That is how the Small Business Incentive Program got started. It is codified in the Chattanooga Municipal Code.
- Has the City Council discussed this program and this project? If so, when? If not, why not?
- Who prepared the agreement in your agenda packet? Was it the City Attorney, the Chamber, or a private attorney hired by the prospective grantee?
Questions about the Chamber's description of the program and grant request in the IDB agenda packet
- The Chamber says it has partnered with TN ECD, TVA, the City, and the County to support the expansion of this business. What is the financial commitment of these other entities?
- Is there a list of “high growth” industry sectors? If so, is industrialized building manufacturing on the list?
- Has the IDB been asked to make direct grants to other private businesses in the past?
AIS sounds like a good company. I hope they expand to Chattanooga. Other existing and prospective businesses might also be interested in this new grant program once they hear about it. We need a well-thought-out program to explain how we pick the winners. The Chamber says this program is a tool for business locations/expansions that DON'T meet PILOT standards. Which PILOT standards are they referring to? Isn't that what we are working on and hope to adopt early next year? Do we have the cart before the horse?