CLINTON, Tenn., Dec. 8, 2016 /PRNewswire/ -- The Anderson County Commissioners and Industrial Development Board of Anderson County have approved, for the first time, a Tax Incentive Financing program (TIF) for Industrial Development. The TIF is approved for two industrial buildings and site to be developed by The Hollingsworth Companies.
The recession of 2008 paired with increased energy code requirements (IECC Regulations) and water quality requirements created a perfect storm for industrial development. Typically, industrial developers build "speculative" buildings in anticipation of future tenant demand. These buildings are a financial risk to the developer, but a benefit to the local community as it allows for quick occupancy to potential manufacturing and distribution companies.
As the recession hit, manufacturers became cautious with expansion plans. In the same time period, the federal government increased energy and drainage building code regulations significantly driving up construction costs. The net result of both these events greatly increased the price difference between "new" and "existing" buildings.
This widening gap of new versus used rental prices for industrial buildings resulted in a further reduction in the supply of industrial space. Industrial space for manufacturing, distribution, and warehousing is one of the critical elements in growing the economy and expanding business in semi-rural communities.
To stimulate the expansion of speculative industrial space, governments can turn to incentive plans to offset rising costs. While this may seem short sided from a tax standpoint, the reality is quite the opposite. Communities with immediately available industrial space have a higher opportunity to attract new prospects. These companies result in new job creation and increase the tax base with additional business income tax, sales tax, and personal property tax.
The community leaders of Anderson County saw the opportunity to restart industrial development in their community with a TIF. This TIF was approved to use future property tax revenue to improve infrastructure and increase development in the David Jones Industrial Park.
"This TIF will result in 2 speculative industrial structures of 126,000 sq. ft. (square feet) that include 13,100 sq. ft. of commercial office space," said Bear Stephenson, Chairman of the Anderson County Industrial Board. "The commercial office space will retain 51 engineering and sales jobs that would likely be moved out of state."
Bear further stated, "It is anticipated these buildings will attract automotive, plastics, nonwovens, and various other manufacturing and distributions companies and the resulting jobs to Andersonville."
"The government leaders of Anderson County, TN are positioning their community to quickly respond to economic growth," stated Joe Hollingsworth, CEO of The Hollingsworth Companies. "The recent elections will result in an upturn in the economy. Those communities that have available industrial space, will be in the best position to respond quickly to manufacturing and distribution opportunities."
About The Hollingsworth Companies
The Hollingsworth Companies, with facilities located in Alabama, Georgia, Mississippi, North Carolina, Tennessee, and Virginia, are the largest semi-rural Industrial Real Estate development firm in the southeastern United States. For more information about David Jones Industrial Park or The Hollingsworth Companies, contact Tom Mann, Vice President of Industrial Real Estate, at 865.457.3601, email@example.com.
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SOURCE The Hollingsworth Companies