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.  

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