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City staff presents annual PILOT report; several programs sunset in 2025

Chattanooga City Council (committee/session) · August 5, 2026
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Summary

Sharina Allen, senior advisor for economic and workforce development, presented the annual report on payment‑in‑lieu‑of‑tax (PILOT) and pilot programs, saying a handful of pilots (including M and M Industries, OP Mobility and Unum) reach the end of their term in 2025 and that staff will continue monitoring compliance and clawbacks where applicable.

Sharina Allen, senior advisor for economic and workforce development, told council the annual pilot report summarizes active PILOTs, their contractual commitments and their cumulative payroll and property‑tax impacts. "The pilots payment in lieu of taxes, this is a program that we use to recruit businesses to the city," she said, explaining the program’s role in recruiting and retaining targeted industries.

Sharina listed pilots sunsetting in 2025: M and M Industries (2019–2025) with a pilot value roughly $995,952 and cumulative payroll around $29,000,000; OP Mobility (10‑year pilot, pilot value about $3,000,000, cumulative payroll $174,000,000 and 384 jobs); and Unum (a $5,000,000 pilot over 15 years that funded a parking garage and unlocked roughly 12 acres for downtown development). She also summarized larger ongoing pilots — including Volkswagen (pilot years 2010–2039) and Gustave — and said the city is migrating historical data into new economic development software to produce more comprehensive multi‑year reports.

Sharina described the monitoring process for compliance: companies submit annual performance numbers to the Chamber of Commerce by December 31, the chamber validates data in January–February, the city briefs elected officials, and a 14‑step process exists for clawbacks or penalties for noncompliance. She said some companies have faced clawbacks in the past and that staff will provide additional detail and contractual documents on request.