State Funding Board approves fast-track grants for five projects totaling $8.9 million

The Tennessee State Funding Board on Aug. 25 approved fast-track economic development grants and job-training assistance totaling $8.9 million to support five projects in Crockett, Fayette and Unicoi counties.

Allison Page, budget and finance administrator for the Department of Economic and Community Development, told the board the department’s fast-track balance and commitments supported the awards and that the five projects combined represent the creation of roughly 500 net new jobs, retention of 166 jobs and about $186 million in planned capital investment across the projects.

“These are really exciting for us,” Page said, summarizing the package before the board. The board moved to approve the five projects by voice vote; the motion was seconded and passed.

The projects and Department of Economic and Community Development summaries presented to the board:

- Hitachi Energy USA (Alamo, Crockett County): The company plans a manufacturing expansion to increase capacity for transformer components. The department said Hitachi Energy USA committed to create 100 net new jobs and to make a $97,000,000 capital investment within five years, with an average hourly wage of $23.70 compared with the county median wage of $19.81. The department requested a $1,000,000 fast-track grant to support building expansion and retrofit costs.

- Vibrant Health Products USA (Rossville, Fayette County): The company — opening its first U.S. manufacturing site in a former Kellogg’s facility — committed to 394 net new jobs and just over a $48,000,000 capital investment within five years. The department reported an average hourly wage of $26.13 versus the county median of $19.56 and requested $3,700,000 in fast-track assistance for building acquisition, retrofit and fixture improvements.

- Duraline Intermediate Corporation / Polypipe (Erwin, Unicoi County): The presenter said the facility was destroyed in a storm, is being rebuilt, and the company committed to retain 66 jobs and to make a $27,000,000 capital investment within five years. The department described an average hourly wage of $26.05 versus the county median of $18.61 and requested $1,650,000 in job-training assistance to retain and retrain full-time employees.

- Foam Products Corporation (Erwin, Unicoi County): Also damaged in storms, Foam Products committed to retain 47 jobs and to make a $4,300,000 capital investment within five years. The department reported an average hourly wage of $21.85 versus the county median of $18.61 and requested $1,175,000 in job-training assistance.

- Plasti Exports TN LLC / Plasti Exports Newco Inc. (Erwin, Unicoi County): The company, whose Erwin facility was reported as a total loss in the storm, committed to retain 53 jobs and to make a $7,400,000 capital investment within five years. The department reported an average hourly wage of $21.63 versus the county median of $18.61 and requested $1,325,000 in job-training assistance.

Page also reviewed the department’s fast-track fund balances: a previous balance of $686,200,000, new appropriations of $6,200,000, newly deobligated funds of $3,200,000, an adjusted available balance the department gave as $691,800,000, and a total amount committed of $427,400,000 (leaving an uncommitted balance the department reported as $264,400,000 and a percent committed of 61.8%). The department presented today’s proposed grants as $8,900,000, which the department said would lower the uncommitted balance to $255,500,000 and raise percent committed to 63.1% if approved.

Board members asked standard accountability questions about the agreements; presenters said checklist items and accountability agreements were in place and that incentive-acceptance forms had been reviewed.

The board approved the package by voice vote. The approvals were recorded as motions passed by the board; no roll-call vote tally was read in the meeting record.

Next steps: The grants and training awards will proceed under the department’s standard accountability agreements and implementation processes; the department did not provide specific timelines for disbursement during the meeting.