Franklin County commissioners approve land transfer to IDB, PILOT and related resolutions for "Project Koala"

Franklin County commissioners voted to transfer a county-owned parcel to the county Industrial Development Board (IDB) and approved associated agreements and tax-abatement terms tied to a proposed industrial project the county identified as "Project Koala." County staff told commissioners the project would generate about 275 jobs and an initial capital investment of roughly $135,000,000.

County staff described the agreed sale terms as a substantial price reduction and a 10-year payment-in-lieu-of-taxes (PILOT) schedule. Under the terms discussed, the IDB would offer the buyer roughly 50% off the county—s listing price (staff said the land had been listed at $20,000 per acre and would be offered at about $10,000 per acre). The PILOT schedule described in the meeting would phase property tax abatement over 10 years, with larger abatements in the earliest years and smaller abatements later; staff summarized the steps as 80% abatement the first two years, stepping down in later years, and said the agreement would include clawback clauses that require repayment if the company failed to meet agreed milestones or did not continue planned expansion phases.

Commissioners and staff also discussed infrastructure and timing. Staff said Winchester Utilities and the Tennessee Valley Authority (TVA) were contributing to utility work, and noted the county previously committed $4.25 million in American Rescue Plan funds to a sewer project in Winchester that will be needed to serve the site. Staff said the federal funds tied to that sewer project must be spent by September 2026; commissioners asked about the project schedule and were told work is expected to start in early 2027, a timeline staff described as accelerated.

Several related resolutions moved together at the meeting. Commissioners suspended the rules to take three project-related resolutions and then approved: (1) the property transfer to the IDB that enables the IDB to enter a sale agreement; (2) a resolution finalizing term-range language for the IDB or related board records; and (3) a finalization of a pilot lease agreement tied to the project. Commissioners also approved a separate fiscal-year amendment described as adjustments to general courthouse, jail maintenance, library, solid waste, drug fund and debt service accounts for the fiscal year ending June 30, 2025. In addition, the commission confirmed appointments to the Library Board of Trustees and approved a slate of eight notaries.

Commissioners asked that the county attorney review the sale and pilot documents; staff did not object when that request was raised during discussion. Staff said the IDB had engaged Tom Trent (identified in the meeting as a Nashville-based specialist in PILOT agreements) to assist with the PILOT arrangements.

Votes at a glance: all motions described on the record were approved. Where the transcript records a mover and seconder, those names are listed in the actions section below; individual roll-call tallies were not specified in the meeting transcript provided.

The commission did not adopt any changes on the record that would alter the PILOT schedule as described in the discussion; staff said annual reviews and clawbacks would be used to verify the company met investment and job-creation pledges.

Looking ahead, county staff and the IDB will complete the sale and lease documents and the IDB will be positioned to execute an agreement with the prospective company. Commissioners requested county-attorney review and additional details on pricing and agreement language before final conveyance and financing actions occur.