Concerns raised about new Chattanooga PILOT policy

CHATTANOOGA, Tenn. (WDEF)-  A meeting to discuss tax incentives for Chattanooga businesses faced some criticism Monday.

The concerns raised during Monday’s Chattanooga Industrial Board meeting were in regards to the new PILOT policies passed by the Chattanooga City Council earlier this year.

Presented by the Chattanooga Chamber of Commerce, these updated policies are designed to incentivize prospective companies who are interested in moving their businesses to Chattanooga by giving them tax breaks.

However, Janice Gooden, representing CALEB, said, “We do need to focus on the process, but I don’t see you working independently. There needs to be more communication.”

Others like Helen Burns Sharp, who has been a watchdog for Accountability for Taxpayer Money, wonder if the proposed policies would have enough oversight.

Sharp said, “We need to look at the company. We have in the past given PILOTs to companies that like two years later that filed for bankruptcy. Maybe that couldn’t have been predicted, or maybe if we had looked at it more carefully maybe we would think, “Is this a company we really want to invest in?”

One of the companies who recently asked for a new PILOT agreement has been the electric battery manufacturer Novonix. 

This is so they can build a new plant at Enterprise South.

However, they faced criticism for recent layoffs at their Westside facility.

Now, they are planning to update the Chattanooga City Council with the Chamber of Commerce, a decision that is raising some eyebrows.

Sharp said, “Why is the Chamber is holding a meeting at their office? Why isn’t this meeting here or at the Courthouse?… The elected officials are there, it needs to be advertised as a meeting of the County Commission or the City Council and it was not.”

 The Chamber of Commerce will hold that discussion next week at their office as advertised in a legal notice.