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County ends tax plan for Nakatetsu

Robert Houk • Jul 30, 2019 at 8:30 PM

The Washington County Industrial Development Board ended a payment-in-lieu-of-taxes agreement with one manufacturer on Tuesday and heard an update on the county’s latest PILOT deal.

Chuck Mason, chairman of the industrial board, signed the papers to release Nakatetsu Machining Technologies from its PILOT agreement. The Japanese-headquartered bearings maker is located in the Washington County Industrial Park in Telford.

Allyson Wilkinson, Washington County’s staff attorney, said Nakatetsu has become the county’s second PILOT project to complete the terms of its agreement. The first was Bush Hog, now Swedish-owned Alo, which is also located in the county’s industrial park. The farm equipment manufacturer ended its PILOT deal in 2014.

Automotive components manufacturer JTEKT is also located in the industrial park.

Wilkinson said Nakatetsu has met its employment goals and “concluded its PILOT.” She said the company is now paying its full property tax obligations.

Alicia Summers, vice president of Northeast Tennessee Regional Partnership, told industrial board members the Nakatetsu deal was “a prime example of a successful PILOT.” She also updated board members on the progress of Ebm-pabst, which will be the newest company to locate in the county’s industrial Park as part of a PILOT agreement.

The German-based fan and motor manufacturer announced in May it will bring 200 jobs and a $37 million investment to the region.

Summers said Ebm-pabst is currently renovating its $1.45 million warehouse space in Johnson City, and has posted job openings for 30 positions with plans to begin production in September. She said the company plans to create 60 jobs by the end of the year.

“They are right on track with their timeline,” Summers said. “We are excited to have them here.”

Industrial board members also put out call Tuesday for county residents with business, real estate or manufacturing backgrounds, who are interested in serving on the panel. The board currently has three openings to fill.

“It’s a good time to serve,” Mason said. “We are having success here with these PILOTs rolling off the books.”

Residents interested in serving as a industrial board member should contact county Mayor Joe Grandy’s office at 753-1666, or by email to sgreene@washingtoncountytn.org.

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