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Cookeville council approves sale of Highlands Business Park parcel to Hollingsworth Company
Summary
The council authorized sale of approximately 27.4 acres in Highlands Business Park to Hollingsworth Company for an estimated $1.05 million; staff said the project could bring about $40 million in investment and about 168 new jobs, subject to county approval and performance clawbacks.
Cookeville’s City Council voted unanimously May 7 to approve the sale of Lot C in the Highlands Business Park to Hollingsworth Company and authorized the city manager to execute the purchase-sale agreement.
Ward, a community development staff member, told the council the property consists of roughly 27.4 acres and staff recommended selling it at $38,500 per acre for an estimated total of $1,054,900 pending final survey. Ward said Hollingsworth proposes a project that would include about $25 million in real property improvements and $15 million in personal property investment and is expected to create approximately 168 jobs within three years of construction.
Ward said the agreement includes clawback provisions to protect the city’s interests and performance metrics that would allow the city to repurchase the property for the amount Hollingsworth paid if performance commitments are not met. He also said the contract includes an option that would allow Hollingsworth to pay an additional $200,000 and retain the property to build a speculative facility if the primary project does not proceed.
A public commenter raised concerns about whether the city is offering tax or utility incentives tied to similar past projects. Mills, speaking for city administrative staff, said the Hollingsworth proposal is not being offered pilot incentives and that any improvements would go on the tax rolls once completed. Ward reiterated that Putnam County’s legislative body must also approve parts of the agreement and staff expects the county to consider it at its May 18 meeting.
The council approved the sale by voice vote (5-0). The sale is subject to finalization of survey and agreement language and to Putnam County approval.
What happens next: Staff will finalize the purchase-sale agreement and forward required documents to Putnam County for its consideration; the city’s authorization allows the city manager and city attorney to complete final revisions.
