Reaction to Alstom closing

CHATTANOOGA, Tenn. (WDEF) – Chattanooga City Councilman Chris Anderson hopes local governments can get tax money back from General Electric.

That comes one day after an announcement that G.E. is closing three Alstom plants in Chattanooga.

General Electric officials say a competitive marketplace and challenges in the power industry led to a decision to close the Alstom plants in Chattanooga.

Alstom had already invested millions of dollars in its Riverfront properties.

As part of an agreement called a PILOT, or payment in lieu of taxes, G.E. got a break on property taxes.

But that deal may be over, if Chattanooga City Council Member Chris Anderson has anything to say about it.

“I’ve also asked how quickly we can make them start paying the market rate income, or property tax on their property as long as they’re here. Alstom got a PILOT 5 years ago under Mayor Littlefield, and the old City Council. We’re trying to recoup the money from it to see if there is any way to do that.”

General Electric purchased Alstom last year.

The local operations manufacture turbines and boilers for nuclear, coal and gas power plants.

This week’s announcement will put 235 employees out of work.

Hamilton County Commissioner Joe Graham doesn’t think the property will be vacant for long.

“So, I see this as a strong positive. I’m very sorry that those people are losing their jobs. They are citizens that are losing their jobs. But hang tight. There’s more coming, and that’s the good thing about where we’re positioned in economic development in the world is that we’ve always got many different industries in the pipeline that are talking to us and negotiating about coming here.”

50 employees will remain for now at the plants in engineering, commercial, and other jobs.

The closures begin later this year.