ROGERSVILLE — The Hawkins County Commission’s Budget Committee voted Monday to recommend to the full commission that it start making $4,750 monthly payments to pay off debt on a 60,000-square-foot spec building at the Phipps Bend Industrial Park.
County industrial developer Lynn Lawson told the Budget Committee Monday a Chinese company is interested in purchasing the building, which was completed earlier this year and has been listed for $1.8 million.
Lawson said the Chinese company has narrowed its choices to three facilities, including the Phipps Bend spec building. They have already visited Phipps Bend twice and will return for another visit in December, Lawson added.
In 2009, the Hawkins County Industrial Board borrowed $700,000 and used another $600,000 in grant funds to begin construction on the building in hopes of attracting a new business and jobs to the county.
Lawson told the committee it’s a lot easier to attract new industry to the county with a completed shell building in place, although the slow economy has made it harder to sell this building than was anticipated.
For the past 2½ years, the Industrial Board has been paying interest on the $700,000 loan.
Lawson told the Budget Committee Monday, however, that U.S. Bank — which loaned the $700,000 — will require payments on the principal beginning in February.
Lawson said that once the building sells, the county will recoup all funds paid toward the loan, and the Industrial Board will begin efforts to build a new spec building.
Even with a 10-year tax abatement incentive, the building would generate $180,000 in new property tax revenue over the course of 10 years, Lawson said.
The Chinese company is expected to hire 35 to 40 people to start with and expand to 75 to 100 employees after three years of operation, Lawson added.
Commissioner Fred Castle suggested postponing the decision until December when Lawson might know more about the Chinese company’s intentions to buy the building.
Even if the company made a decision by December, Lawson said it would be several months before the deal was closed, and the U.S. Bank payments would still have to begin in February.
Commissioner Charlie Freeman noted that the county can’t let the property be foreclosed by the bank and has no choice but to make the payments.
The recommendation was approved 6-0 by the Budget Committee and will be considered by the full commission when it meets Oct. 22.