City Council Weighing Whether To Let IDB Handle Many PILOT Tax Breaks

  • Tuesday, January 7, 2025

The City Council is weighing whether to let the city Industrial Development Board handle most PILOT (Payment in lieu of Taxes) tax breaks.

Under a proposal from the Chamber of Commerce and the city administration, the council would only receive requests for PILOTs when the request is for longer than 10 years.

Others that meet a new "matrix" of requirements would just go through the IDB.

Council Chairman Chip Henderson said, "The matrix eligibility is fantastic, but I feel that whenever we are spending tax money that should fall on the shoulders of the council. I, personally, don't want to delegate to another body."

He added, "I feel like all PILOTs ought to come before this body for a vote."

Councilman Ken Smith said, "Delegation is a big concern for me."

Helen Burns Sharp, taxpayer advocate with a focus on PILOTs, said the proposal would make it easier to get PILOTs.

She said, "Are we putting the PILOT system on auto pilot?"

Ms. Sharp said if the proposed rules had been in place in the past there would have been few PILOTs that went before the council.

A vote on the issue is set for next Tuesday.

Meanwhile, NOVONIX is asking for a second PILOT in connection with an endeavor it says could lead to an investment topping $2 billion.

It is buying 182 acres at the Enterprise South Industrial Park for a new production facility to make graphite for use in lithium batteries. It currently has a research lab in Lookout Valley and production in a former Alstom building.

The company is paying $25,000 per acre for the industrial site property for a total of $4,550,000.

Officials said the tax break would amount to $54.8 million over the life of the PILOT.

NOVONIX will still pay $31.4 million in school taxes and just under $22 million in economic development fees.

Officials said with a part of the county's fees it would provide $5 million to the planned Gateway School.

NOVONIX is to provide over 500 jobs initially and might add another 675 jobs in a second phase.  

Breaking News
Latest Hamilton County Arrest Report
  • 4/4/2025

Here is the latest Hamilton County arrest report. (If your case is dismissed, just email us your name and date we ran it and we will promptly take off. Email to news@chattanoogan.com ) BLUE,JAMES ... more

Arrest Made In Numerous Car Break-Ins At UTC
Arrest Made In Numerous Car Break-Ins At UTC
  • 4/3/2025

An arrest has been made in connection with numerous auto burglaries at the UTC campus. On Wednesday, the UTC Police Department and the Chattanooga Police Department executed a search warrant ... more

100 Years Of Radio In Chattanooga
100 Years Of Radio In Chattanooga
  • 4/3/2025

Radio has been described as the “theater of the mind” and certainly, sometimes, leaves a lot to one’s imagination. April 13 th , 1924, two men from Ohio came to Chattanooga to begin a century ... more