City CouncilTuesday, November 3
Chattanooga City Council will consider a Nippon Paint settlement that would return 10 acres
The 5AM East Ridge team
Council members are set to consider a settlement in the city's "clawback" effort against Nippon Paint Automotive Americas. Nippon would pay about $1.1 million and return 10 vacant acres of the roughly 29 acres donated at the former Harriet Tubman public housing site in East Chattanooga. The city would give up its claims to take back the rest and end Nippon's remaining commitments to invest, create jobs and keep operating.
Nippon invested $52 million at the site, short of the $59 million pledged, Charita Allen of city economic development said last week. She said COVID hampered the project, and a planned second and third building haven't been built. The mayor's chief of staff, Kevin Roig, said, "I don't think we ought to be overly punitive," and called the firm "still operational and trying to grow."
Nippon invested $52 million of the $59 million it pledged
$52MInvested at the site, in millions
Source: chattanoogan.com
View as table
| Value | |
|---|---|
| Invested at the site, in millions | $52M |
| Pledged | $59M |
- Tentative payment: $1,057,600, per city economic development
- Jobs: 32 employees at the site as of last November
- City spent $4 million to move a sewage line on the property
- Status: "not yet final" as of Oct. 27, Allen said
“I will not be supporting this deal. It is very weak.”
Sources: Chattanooga Times Free Press, chattanoogan.com