ARTICLE TOOLS

E-mail story

Comments

Printer friendly version

iPod friendly version

Share This

Text Size: A A A A

Chattanooga: VW gets perks for Enterprise South plant

By: Mike Pare
(Contact)

By: Matt Wilson
(Contact)

Included in this article

William Sutton

Volkswagen is getting a variety of perks, in addition to sizable state and local tax breaks and financial incentives, to build its $1 billion, 2,000-employee plant in Chattanooga, a memorandum shows.

The state is committing $2 million, for example, for marketing and public relations for VW and the project, while the Chattanooga Area Chamber of Commerce is creating an “ambassadors program” to help integrate VW workers into the city.

VW even can rename the portion of Enterprise South industrial park where it will locate the facility, according to a memorandum of understanding between the automaker, local and state governments and the Chamber.

The more-than-50-page memorandum is a detailed list of commitments each of the parties are expected to carry out in the future.

William Sutton, a University of Tennessee at Chattanooga dean who has worked with auto companies, said it’s not unusual for a company making an investment the size of VW’s to have special needs. Nor is it unusual for communities to accommodate them, he said.

“It’s not uncommon to see stuff like this,” said Dr. Sutton, UTC’s dean of engineering and computer science.

Jill Bratina, a VW spokeswoman, said the commitments will help the company bring huge benefits to the Chattanooga area.

“Those bring tremendous benefit to everyone involved,” she said.

VW also is pleased with its relationship with the city and county, she said.

“They’ve met every target and gone above and beyond,” she said.

The agreement calls for designating coordinators for public policy advocacy, public relations, the environment, taxes and work force development — at no cost to the company. Hamilton County Mayor Claude Ramsey said that “coordinators” section essentially assigns titles to people who already are doing the work.

“I think most of them are internal,” he said.

Still, Chattanooga Mayor Ron Littlefield said having those positions gives government officials and VW room to create more positions if the workload gets beyond what current staff can handle.

Likewise, Mr. Littlefield said, the $2 million set aside for public relations gives officials a contingency plan to go to if there’s a need.

Mr. Ramsey pointed out that those funds are specifically for promoting green manufacturing and the development of new fuel sources. He said the money is not likely to be used for television commercials or hiring a public relations firm.

“I think it’s more intended for if they need to do a function to promote clean fuels,” he said.

Mark Drury, a state Department of Economic and Community Development assistant commissioner, said the current administration never has done a project such as VW’s.

“This is an unusual project,” he said.

Marketing funds will not just help VW but will promote Tennessee’s advantage as a business location, Mr. Drury said.

J.Ed. Marston, the Chamber’s vice president for marketing, said VW will have naming rights for its site. But he anticipates the Chamber will continue to market the rest of the industrial park as Enterprise South.

Comments