City HallWednesday, November 4
The City Council delays action on a clawback from Nippon Paint in East Chattanooga
The 5AM East Ridge team
If you've wondered where the Nippon Paint deal in East Chattanooga stands, the City Council on Tuesday delayed action on a "clawback" of the land the city donated. Councilwoman Marvene Noel, whose District 8 includes the plant, said she inadvertently missed a meeting on the topic.
Charita Allen of city economic development said Nippon invested $52 million at the former Harriet Tubman Public Housing site, short of the pledged $59 million. A planned second and third building have not been erected. Under a tentative agreement, Nippon would pay and give up 10 of the 29 acres the city donated.
Nippon invested $52 million of a pledged $59 million
Source: Chattanoogan.com Breaking News
View as table
| Value | |
|---|---|
| Pledged | $59 million |
| Invested | $52 million |
- Payment: $1,057,600 under the tentative agreement
- Jobs: 32 employees last November; 150 promised by Dec. 31, 2027
- City's cost: $4 million to move a sewage line
Council members want more. Dennis Clark, who called the proposed deal "very weak" last week, said a new appraisal is needed because the payback rests on a 2018 one. "It's not enough. They can pay more," he said. Ron Elliott called the payment "almost a drop in the bucket." Kevin Roig, the mayor's chief of staff, said, "I don't think we ought to be overly punitive." Allen said Nippon needs the other 19 acres for trucks to turn around.