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Company says exploratory land option near Riverbend is under 150-day review; city stresses existing Enterprise South pilot remains unchanged
Summary
City staff and Neonics’ CFO told council a listed company’s public announcement reflected Australian stock-exchange disclosure rules and that the company is in a 150-day due‑diligence period on roughly 17–20 acres adjacent to its Riverbend facility. The administration said any change to the Enterprise South pilot or incentives would require the same public review process and approvals as the original agreement.
City administration and company leaders told the Chattanooga City Council on March 10 that a private company's announcement about exploring a land purchase adjacent to its Riverbend facility is an early, exploratory step and does not automatically alter the city's existing pilot agreement at Enterprise South.
Kevin Roy, the mayor's chief of staff, said the administration views the company's interest as a positive sign for local investment but emphasized that any change to existing incentive agreements would follow the same public process that approved the pilot — including review by the Industrial Development Board, council and county commission — and would be contingent on verified investments and job commitments.
"Notionally it's exciting that Nonics is looking for additional expansion opportunities," Roy said, adding that the administration will hold the company to the same performance and transparency standards required for incentives.
Robert Long, who identified himself as the CFO of Neonics, told council the company is listed on the Australian Stock Exchange and therefore has continuous-disclosure obligations that required the announcement once a potentially binding transaction was reached. He said the company has a 150-day exclusive due-diligence period to assess the parcel (described in the presentation as about 17½ acres) and that the firm is in the early, exploratory phase.
"This is really day one of a 150-day exploratory period to understand the property," Long said, adding that the company is not assuming a change to its pilot agreement and will keep the city and county informed as the process evolves.
Council members pressed for clarity about timelines and how an alternate site would interact with the Enterprise South pilot, including whether the pilot's start date options (listed in the meeting as Jan. 1, 2028, and Jan. 1, 2029) could leave the city in limbo about land use. Administration officials acknowledged outstanding TIFF and pilot interface questions and said they would follow up; council members urged earlier coordination with the mayor's office the next time a disclosure is likely to reach local press.
Why this matters: Economic development agreements and tax-incentive pilots are time-limited and often tied to specific sites, job creation and investment commitments. If a company seeks to change the location tied to incentive terms, the city and county will need to assess whether promised public benefits and legal conditions still apply and follow the established public-review process.
Ending: The company and city said the situation is under early review; no change to the Enterprise South pilot was approved at the March 10 meeting, and staff committed to follow-up with additional details as the company's due diligence proceeds.
