Commission defers Novonix Enterprise South agreement after company apologizes for layoffs
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Summary
Hamilton County postponed a vote on the Novonix Enterprise South land-sale and PILOT agreements to Jan. 29 after the company acknowledged layoffs and commissioners sought city action and contract protections.
Hamilton County commissioners on Wednesday deferred action on a proposed real-estate sale and related payments-in-lieu-of-taxes for Novonix Enterprise South LLC, citing outstanding action by the Chattanooga City Council and fresh questions after the company announced recent layoffs.
The commission moved Resolution 125-8 to a recessed meeting on Jan. 29. Commissioners said they wanted to see how the city responds before taking their own final action.
Robert Long, identified in the meeting as Novonix chief financial officer, told the commission he regretted the timing of company actions on Jan. 6 that resulted in staff reductions. "I do want to apologize for any confusion or concern that our actions of January 6th has caused," Long said. He told commissioners the company let 19 positions go across its locations because hiring had outpaced delivery and installation of production equipment; he said Novonix expects to restore those positions during 2025 and that laid-off employees will receive severance and priority rehiring.
Commissioners pressed company representatives about transparency and timing. Commissioner Smith said the layoffs were "incredibly bad timing" for a company seeking a pilot and local incentives. Commissioner Beck and others said the commission expects full transparency in future communications by companies seeking county support.
A county attorney or staff member identified as Garin said the draft agreement includes reversionary rights and development-timeline clauses: if development milestones are not met or the company fails, the county would retain certain reversionary protections and a right of first refusal to buy the property back at the original sale price.
Commissioners also noted the Chattanooga City Council had not yet acted on the project; several commissioners said they supported deferring county action until the city considered its own measure. The commission voted unanimously in favor of deferral at the meeting.
Novonix representatives in the chamber answered questions from commissioners, described equipment delays and hiring timing as the cause of the staffing changes, and said the company does not propose changes to the economic terms of the pilot or incentive package now on the table.
The item will return to the commission at the recessed meeting Jan. 29, when county staff expect to bring updated materials after the city acts.
