Search

Chattanooga Greenlights Kordsa Expansion, Approves PILOT Program

Chattanooga City Council approved a 10-year Payment In Lieu of Taxes (PILOT) program for Kordsa Inc.’s $50 million expansion of its manufacturing facility in Hixson, a project that is expected to create 200 high-paying jobs and provide new riverfront greenway access for residents. Already approved by Hamilton County, Chattanooga’s Council sign-off ratifies the agreement with Kordsa.

“This is a win-win for the people of Chattanooga and for Kordsa, and I’m confident that the value our community will realize through this project and through our continued partnership with Kordsa will span long beyond the time horizon of this program,” Chattanooga Mayor Tim Kelly said.

“When you look at this $50 million investment in a broader context – beyond the 200 direct and over 400 indirect jobs it will create, the more than $39 million annual direct and indirect wages and benefits, or the estimated $83 million single-shot economic benefit to Chattanooga – you realize that success really does breed success: The total investment in the old DuPont property now exceeds $150 million, and the North River Commerce Center is becoming a premiere commerce corridor for our city.”

As part of the agreement, Kordsa is committing to partner with the BuildWithin Apprenticeship Initiative and Chattanooga 2.0, to publicize the new job opportunities to attract local workers, and to make the construction opportunities available for local contractors. 

Kordsa will also partner with the City through this project to provide greenway access to the riverfront, which will add to Chattanooga’s 35 miles of trails and greenway and provide residents with another avenue to connect with and to enjoy the beauty of the city. 

Under the PILOT, Kordsa will get a 100 percent tax property reduction the first year, 75% the second year, 60% the third year, then 50% per year for the remainder of 10 years. The company will continue to pay property taxes on all existing operations as well as continue to pay 100 percent of school taxes throughout the term of the PILOT and beyond. 

Korda’s expansion, in conjunction with another nearby project, is expected to bring the total number of workers around North Access Road to more than 1,000. 

“It wasn’t too long ago that Chattanooga could have been passed over when it comes to opportunities like this one, and the economic benefits would have gone to another city or another state. But those days are gone, and our commitment to busting blight and bringing good-paying jobs across the city and region is paying off,” added Mayor Kelly. 

Other Topics

The Chattanooga Chamber of Commerce hosted its annual Holiday Open House on Wednesday, Dec. 11, 2024. Thanks to the support of our presenting partner EPB, First Horizon, Food City, and all our great sponsors, the event brought together those from the…

On Wednesday morning, the Chattanooga Chamber gathered a group of Tennessee state legislators for the Legislative Kickoff event, where they shared their thoughts on the upcoming legislative session and their priorities for the new year.  Senator Bo Watson emphasized that…

With the holidays just around the corner, it's becoming the most wonderful time of the year.   Thankfully, it's possible to make this season even more wonderful. When we shop from locally owned, small businesses, we give two gifts rolled into…

Avail Enclosure Systems, a subsidiary of Avail Infrastructure Solutions, has announced a significant expansion of its Chattanooga facility, a project expected to create 82 new jobs and drive more than $10 million in investment in Hamilton County. The expansion reflects…

Over fall break, Tamyus Malone woke up early on a day he could have otherwise slept late. The Howard School senior joined 15 other classmates for a rare, behind-the-scenes tour of a Chattanooga company known around the world.   Opella.  "This…

In an act praised by many across the state, Gov. Bill Lee enacted a recent bill that supports the Tennessee business community in two significant ways: The bill eliminates the alternative minimum property tax. The bill authorizes the state to…

Sign up for weekly updates.