Cumberland County approved a 10-year PILOT (payment in-lieu of tax) agreement resolution for the county's Industrial Development Board during Monday night's county commission meeting.
According to resolution 11-2014-1 — "CoLinx, a Delaware LLC is considering constructing and equipping a 210,000 square-foot expansion of their distribution facility in Crossville, TN."
The expansion project will result in the capital investment of $14,375,000 and the creation of approximately 65 new jobs, and the retention of 700 jobs in Cumberland County.
The expansion of the facility has been under construction for months just off Cox Ave. In fact, the county has previously approved other resolutions to give land and right of way on Cox Ave. and rearranged the layout of the Cox Ave. convenience center to allow for the expansion and road improvements necessary.
"I want to thank the county for working with CoLinx and the agreement and helping work with us for the expansion," Ed Camera of CoLinx said.
Camera said the expansion is nearly complete.
"We appreciate and thank you for what you do and all the jobs you provide. CoLinx is a vital part of this community," Cumberland County Mayor Kenneth Carey Jr. said.
The resolution states the county commission wishes to provide expanded economic opportunities for the citizens of the county and approve the execution of a PILOT lease by the Industrial Development Board with the company in which the company will make payments in-lieu of tax to the city of Crossville and Cumberland County for a term not to exceed 10 years.
The resolution authorizes the Industrial Development Board to negotiate a PILOT lease with the company.
The "PILOT lease requires the company to make payment in-lieu of taxes to the county equal to that portion of the real and personal property taxes which the company would have otherwise paid with respect to the project if the company had owned the project in fee simple during the term of the lease according to the tax rate schedule," the resolution states.
The tax abatement lasts 10 years with the first four years at no tax payments, the next two years taxed at 25 percent, then two years at 50 percent and the final two years at 75 percent, before going to the full tax amount in year 11 of the agreement.
The Cumberland County Commission unanimously approved the agreement after a motion was made by Sonya Rimmer, 8th District commissioner. Rimmer's motion was supported by Allen Foster, 4th District.