Funding board approves $2.8M in Fast Track grants for Little Leaf Farms facility in Coffee County

The Tennessee State Funding Board on July 21 approved two Fast Track grants totaling $2.8 million to Little Leaf Farms to support a new controlled-environment agriculture facility in the Manchester Industrial Park in Coffee County.

Alan Borden, deputy commissioner for the Tennessee Department of Economic and Community Development, told the board Little Leaf operates indoor greenhouse campuses and that the Tennessee site will become the company’s largest and most advanced facility in North America. "They have actually committed to create 318 net new jobs and make almost a $75,000,000 capital investment within 5 years," Borden said, adding that the facility will allow distribution throughout the Midwest and Southeast. He said the company’s largest customer is Walmart.

Jessica Johnson, assistant commissioner of finance and administration, presented the Fast Track fund status before the vote and said the department’s uncommitted Fast Track balance would decrease from about $255.2 million to approximately $252.4 million if the grants were approved. Johnson reported recent appropriations, grants and administrative expenditures that produced an adjusted Fast Track balance and percent committed prior to the proposed awards.

The board approved two grants to Little Leaf: $1,500,000 from Fast Track job training assistance program funds and $1,300,000 from Fast Track infrastructure development program funds. Jamie Stitt, assistant commissioner of business and workforce development, described an infrastructure need for an elevated 500,000-gallon water storage tank to serve the greenhouse campus.

During questions, the Comptroller of the Treasury asked why Coffee County and the Manchester Industrial Park were attractive. ECD staff cited three factors: availability of a certified site in the park, the quality of the local workforce and Tennessee’s logistics and distribution advantages. When asked about due diligence, ECD said the company had signed the incentive-acceptance forms and that the project checklist was complete. The department told the board the Fast Track job-training award is covered by an accountability agreement; the infrastructure grant is public infrastructure and does not require the same accountability agreement.

A motion and second were made and the board approved the grants by voice vote.

The department characterized the project as a collaboration with the Department of Agriculture and described it as an agribusiness economic development effort. The board recorded no public comment on the item.