Hamilton County approves sale of Enterprise South acreage to Novonix with reversion protections

Hamilton County commissioners voted unanimous to approve Resolution 3-25-11 on March 25, 2025, authorizing the county mayor to execute a purchase-and-sale agreement and related closing documents to sell roughly 182.39 acres in Enterprise South Industrial Park to Novonix Enterprise South LLC.

The measure will also delegate certain authority to the Industrial Development Board of the City of Chattanooga and authorize an agreement for payments in lieu of ad valorem taxes tied to the sale. The resolution was moved by Commissioner Baker and seconded by Commissioner Beck before the roll-call approval.

Commissioner Graham asked the county attorney whether the contract’s clawback and reversionary clauses protect the county if federal funding for the project becomes unstable. Attorney Taylor replied that the agreement “provides for reversionary interest to come back to the county” and that the language contemplates either complete or partial reversion depending on whether contract terms are met.

Several commissioners voiced support for the project while stressing oversight. Commissioner Mackey cited national supply-chain concerns, saying the battery industry has relied heavily on overseas production and that Novonix “is at the top of that list of companies in America seeking to build batteries.” Commissioner Sharp said the project’s potential benefits and the county staff’s work reduced his view of the risk and that he would “absolutely” support approval.

The roll call recorded affirmative votes from the commission and the clerk announced: “Resolution 3-25-11 passes.” No amendments to the motion or substitute motions were recorded during the session.

The resolution text describes the property as approximately 182.39 acres known as the Special Legislative Area, main manufacturing area, partial 1.02—parcels within the Enterprise South Industrial Park—and contemplates delegation to the City of Chattanooga’s industrial development board and a payments-in-lieu-of-taxes arrangement. Commissioners noted they had reviewed the terms with city officials in a prior joint meeting.

Officials in the discussion repeatedly emphasized protection of county interests through contract language while expressing optimism about jobs and economic development if the project proceeds as planned.

Votes at a glance: Resolution 3-25-11 — motion by Commissioner Baker, second by Commissioner Beck; roll-call approval; outcome: approved.

A county clerk’s file will contain the final signed purchase-and-sale agreement and deed once the county mayor and purchaser complete closings and any required conditions are met.