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CHARLIE BETTIS (FRONT), LCEDA CHAIRMAN EDDIE SIMPSON (L) CAP, EDA PRESIDENT PAT PHILLIPS, KATHY KNIGHT, M. BOBO, PRESIDENT CHAMBER, COMMISSIONER DON MILLER, MAYOR ESTELLE HERRON, RON JORDAN, DALE HURST, MAYOR JUDY KELLER

WILL COMMISSION TANGO WITH COMPANY X?   

BY: PAT HUNTER

" Consideration of Proposed Incentive Package" was listed on Thursday's (Aug. 18th) 2:00 p.m. Loudon County Economic Development Agency (EDA) Board meeting agenda. Have you heard about hush hush Project 'TANGO'? The Tango is characterized as smoothly executed moves with fancy footwork so leave it up to our EDA to be the instructor and come up with some new moves.

In a dimly lit Board room, members gathered to hear about a proposed incentive project for Company X dubbed 'Tango'. The following officials were present: EDA Chairman Eddie Simpson, Charlie Bettis (Treasurer), Commissioner Don Miller (Vice-Chairman, Commission's representative), Ron Jordan, President Chamber of Commerce, Michael Bobo Chamber Exec., Lenoir City Administrator Dale Hurst, Loudon County Mayor Estelle Herron, Loudon City Mayor Judy Keller, LCEDA staff President Pat Phillips, and Assistant LCEDA Director Kathy Knight. No local press. 

Loudon City Mayor Judy Keller was in attendance. Some expressed surprise to see County Mayor Estelle Herron. Herron is the first county mayor that declined serving as Chair to the LCEDA, unlike her predecessors, former County Exec George Miller, and County Mayor Doyle Arp who took a lead role in the economic development of the county. She sat in the corner looking down as the minutes ticked away.

The Executive Committee Board deferred Project 'Tango' to the full Board, which was called to order by Chairman Eddie Simpson (Loudon County Road Superintendent) with the approval of routine business, minutes and financial report by banker Charlie Bettis, which was quickly dispensed. 

Phillips touched on Governor Haslam's changes to the state economic development department. One proposed change may do away with the Three Star Program, and an end to the Executive Committee to the EDA Board, which was chartered under provisions of Public Chapter (PC 1101).

EDA President Pat Phillips distributed a handout with information and options about Project 'Tango.'  Phillips discussed tax package incentives and options that would be offered to Company X.  In order to be considered for this project, a deadline date of September 1st must be met by Loudon County and Loudon City legislative bodies.

Phillips said that the business would be a clean business, a distribution center. Presently, under consideration are two potential 100 acre sites located at Centre 75, and Highlands Business Park, both located in Loudon City. The Aug. 22nd Special Called meeting will be a presentation of incentives.

He also spoke about the county's un-employment situation which indicate over 2,000 unemployed people. Under two proposed employment scenarios, Scenario #1 would hire 325 people, and under Scenario # 2 would hire 1,125 people. Is the presumption that all the jobs will be generated here. Are they going to bring 325 employees with them asked Lenoir City Administrator Dale Hurst. Phillips replied, mostly East Tennessee and when I say locally, Loudon, Knox, Blount.

The four-page handout called "Project Tango Legislative Summary Report County of Loudon/City of Loudon August 12, 2011" was emailed last week to county commissioners. Although the Special Called meeting and agenda for Monday August 22, 2011 was noticed in the newspaper and website, the 4-page summary was not made available to the public on the Loudon County TN gov website. One has to wonder if this in keeping with Mayor Herron's purported transparency policy. 

Charlie Bettis asked Phillips about the impact of Scenario #2. It would have a huge interest on retail establishments on Highway 72, and some additional industrial prospects, replied Phillips.

Phillips added, we're working on an Italian project from two years ago, with renewed interest about three weeks ago and he spent time with them. That client is looking at the Sugarlimb Industrial Park.

Pat Phillips informed the Board that this is strictly an incentive package proposal that the two governing bodies (Loudon County and Loudon City) would consider and vote on.

What are you asking the Board to do asked Dale Hurst. I am asking the Board to endorse this and send it to the legislative bodies, replied Pat Phillips.

Charlie Bettis made a motion to endorse this package and to take it to the two entities (Loudon County Commission, Loudon City) with a second from Mayor Estelle Herron. The motion passed unanimously. I think that's a good move added Chairman Eddie Simpson.

WHERE ARE THE JOBS?

Loudon County is an ideal location for business to locate because it is has low taxes, centrally located near interstates, it also has rail and barge transportation. As Pat Phillips has said previously when speaking about Christensen Yachts "...We're on the Tennessee Valley Authority system of lakes and rivers... We have low business costs, a high quality of life and sit at a north-south and east-west Interstate crossroads"

Taxpayers are very leery of all the job promises that never seem to materialize, case in point, Christensen Yachts. A Public Release said that the plant would initially have 500 employees, but plans called for doubling that number to 1,000 within six years. The County doesn't want to talk about employment numbers at Christensen Yachts but the most current data doesn't even show Christensen on the list of Marine Manufacturers.

Marine Manufacturers

Source: Book of Lists, 2011; Community Data Sheets, State of Tennessee

And then there was John Deere. Loudon County gave away the farm and then Deere closed the Loudon plant and relocated its skid steer production operations to Dubuque, Iowa. Deere left 420 people unemployed, and the City of Loudon had to raise property taxes to make up for the shortfall in tax revenue.

On the surface, the prospect of job opportunities for 2,000 unemployed local residents sounds enticing but there are no guarantees (written or otherwise) from Company X that jobs will actually go to the local workforce. If workers from other counties are employed by Company X, property tax dollars stay in their respective communities, where they live and shop. Additionally, taxpayers will have to foot the bill for any shortfall in tax revenue from Company X, and then there's the matter of $1Million loan for site development/infrastructure. How many pennies would that add to the property tax dollar, and how would this affect budgets to help pay for more services? 

(NOTE: According to recent news articles, Governor Haslam laid off 60 people in the Tennessee State Economic Development department and his administration will concentrate on "efforts to encourage the state's 100 largest employers to reinvest in the state." ..." The governor's review of jobs created in Tennessee over the last decade indicate that only 1.2 percent came from out-of-state businesses, even though economic development officials spending about half their "focus and energy" seeking to attract those investments..." "...We're going to have a heightened focus on our existing state businesses, with the idea that that's where jobs are created...")

SEE 4-PAGE LCEDA HANDOUT BELOW.

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08-22-2011