Hamilton County reviews Novonix plan to buy Enterprise South land, create 500 jobs under 15-year pilot

Hamilton County commissioners on the dais heard detailed terms of a proposed sale and pilot tax agreement that would allow battery‑materials company Novonix to acquire land at Enterprise South Industrial Park, create up to 500 jobs by March 31, 2030, and make a package of economic commitments including $5 million for career and technical education.

The presentation, led by Adam Myers of the Chattanooga Area Chamber of Commerce and Daniel Buehling of the county’s Office of Economic and Community Development, said Novonix would acquire about 122 acres at Enterprise South and invest about $450 million in real property improvements and $550 million in personal property for a combined $1 billion capital investment. Myers said the company currently operates two Chattanooga facilities and has been in local discussions since 2022.

The county mayor and county staff described the deal as a continuation of longrunning recruitment and said the state helped expand available grant funds from $10 million to $12 million to support related infrastructure and site work. Under the proposal, the site acquisition price is listed at $25,000 per acre (about $4,550,000 total), and the county and city would split the sale proceeds, giving the county roughly $2 million, according to comments from county staff.

Why it matters: County officials said the project would add a large employer and payroll to the local economy, create pathways into advanced manufacturing for local students, and provide dedicated funding for local career and technical education. The 15‑year pilot term and structure of payments are typical for Enterprise South pilot agreements but carry a substantial net incentive for the company during the pilot term.

Key details from the presentation and discussion: - Jobs and wages: Novonix proposes up to 500 jobs by March 31, 2030, at an average wage of $61,000, producing an estimated full‑ramp annual payroll of about $30.7 million. - Investment: $450 million in real property improvements and $550 million in personal property (machinery/equipment), a total of about $1 billion. - Taxes and fees: The economic impact analysis presented estimates total fees paid by the company during the 15‑year pilot at about $21.9 million, payments in lieu of taxes totaling about $79.4 million, and combined fees and taxes of roughly $101 million during the pilot. The presentation also stated a net incentive to the company over the pilot term of about $54.8 million. - Community benefits: The agreement would withhold $5 million in economic development fees for career and technical education (CTE) programs. Presenters discussed potential uses including Gateway campus and Harrison Bay CTE programs, partnerships with UTC and Lookout Valley Middle/High School, improved public transportation (CARTA) service to the site, and early‑childhood education supports. - Phase 2 option: Novonix may exercise an option to add a second phase within four years (construction to begin within five years) that could add about 675 jobs and roughly $1.1 billion of additional company investment; the option would be covered under the same pilot term and would dedicate an additional $6.4 million in economic development fees if exercised. - Monitoring and clawbacks: County staff said pilot agreements will be monitored with annual reports routed through the Chamber; the agreement includes language that prorates taxes due if the company fails to meet investment commitments.

County leaders and commissioners praised the prospect, noting local workforce and education linkages. Commissioners asked about hiring local residents and skill sets; Novonix representatives said hiring would range from production and technician roles to engineering and finance. Commissioners also asked about enforcement of commitments; staff said the agreement includes monitoring, reporting, and a mechanism to assess prorated tax amounts if investment targets are not met.

Outcome and next steps: The resolution related to the Novonix Enterprise South sale and pilot agreement (Agenda item 125‑8) was presented and discussed; commissioners and staff said they will “take this up next week” for formal consideration. No final vote was recorded in the transcript excerpt.

Ending: County officials said they will return with the formal agreement for a vote next week and that staff and company representatives are available to answer further questions in the interim.