Tennessee approves eight Fast Track grants totaling $20.9 million for manufacturing, aviation and IT projects

The Tennessee State Funding Board on Feb. 13 approved eight Fast Track economic development awards totaling $20,900,000, funding Department of Economic and Community Development proposals to support manufacturing, aviation, and IT-sector expansions across the state.

Assistant Commissioner Jessica Johnson presented the Fast Track financial report and recommended awards, saying, "As of our previous meeting, our Fast Track balance was $614,200,000. New appropriations amount to 1,800,000. Newly deobligated funds, 20,900,000. Fast track funds transferred, 350,000. Fast track grants approved less than 1,738,000. Fast track administration, 611,000. For an adjusted fast track balance available of $634,900,000. Today's proposed grants amount to $20,900,000." The board approved the slate by voice vote after a short discussion.

Why it matters: The grants are intended to reduce upfront costs for expansions, retrofits and training tied to private-sector projects that department staff said will create new jobs and capital investment in multiple Tennessee counties.

Details of approved projects (as presented):

- Aon Inc., Memphis (Shelby County): Aon selected the former American Snuff facility in Memphis for HVAC production and committed to create 828 net new jobs and invest $238,000,000 within five years. The department recommended a Fast Track economic development grant of $12,000,000 to help offset building retrofit, expansion and real property acquisition costs. The company's stated average hourly wage for the new positions is $28.25 compared with the county median wage of $21.47.

- State Industries, Franklin (Williamson County): State Industries committed to 35 net new jobs and a $6,700,000 capital investment and proposed using Fast Track job training assistance funds to train the new employees. The recommended award was $140,000; the company's stated average hourly wage for the new positions is $25.25 compared with the county median wage of $24.89.

- Oshkosh and JLG Industries, Jefferson City (Jefferson County): Oshkosh partnered with JLG to expand telehandler production capacity, committing 194 net new jobs and $119,000,000 in capital investment. The recommended Fast Track economic development grant was $1,500,000.

- JLG Industries off-site distribution center, Knoxville (Knox County): As part of the Jefferson City expansion, JLG plans a 300,000-square-foot distribution center in Knox County to receive, repack and ship materials daily. The project committed to 26 net new jobs and $1,900,000 in capital investment; staff recommended $52,000 in job training assistance.

- Topre America Corporation, Smyrna (Rutherford County): Topre plans a 120,000-square-foot addition and committed to 250 net new jobs and just over $57,000,000 in capital investment. The department recommended a Fast Track award of $1,700,000; the company's stated average hourly wage is $21 compared with a county median of $20.23.

- Weststar Aviation, Chattanooga (Hamilton County): Weststar, a maintenance, repair and overhaul provider, proposed a third Tennessee expansion that staff said would create 200 net new jobs and $31,800,000 in capital investment. The recommended grant was $1,500,000; the company's stated average hourly wage is $33.93 compared with the county median of $20.78.

- Quanta Manufacturing, Luverne (Rutherford County): Quanta is retrofitting an additional building to expand cloud-rack and server assembly and committed to 495 net new jobs and $50,000,000 in capital investment. The department recommended $4,000,000 in Fast Track funds to offset building retrofit and expansion costs.

- Florham USA (Florim/Florham), Clarksville (Montgomery County): Florham requested an adjustment to a prior, multi-phase grant. Department staff said earlier phases included a $700,000 grant in July 2021 and a $1,000,000 third phase approved in 2023; the revised total grant amount for the company is $1,750,000. Today's request was for $375,000 to fund the current phase. Florham committed to 52 net new jobs and an additional $40,000,000 investment; the department cited an average hourly wage of $22.64 compared with the county median of $19.39.

Board confirmations and compliance: After the presentations, the chair asked whether the companies had signed incentive acceptance forms, whether required checklists were complete and whether accountability agreements protecting the state in the event entities fail to meet commitments were in place. Department leadership confirmed the documents and protections had been completed. Stuart McWhorter, commissioner of the Department of Economic and Community Development, responded, "They have, yes."

The board approved the eight projects by voice vote with no recorded opposition.