The City of Chattanooga Industrial Development Board voted April 7 to adopt formal policies and procedures for payments in lieu of ad valorem taxes (PILOTs), setting out application requirements, evaluation criteria and clawback provisions.

Sharita Allen, senior adviser for economic and workforce development for the City of Chattanooga, told the board the State statute authorizes the Industrial Development Board to approve PILOTs and to set related policies. Allen said these policies formalize standards that previously existed only as staff procedures: they identify targeted industries, add an approved application that asks standardized environmental- and workforce-related questions, and create a points matrix to help determine the term and length of any pilot agreement. "The pilot policies are the first formal adopted policies that the City of Chattanooga will have had," Allen said. She told members there is no fiscal impact to the IDB from adopting the policy language itself.

A board member asked whether companies that fail to meet commitments under a pilot would be subject to repayment. Allen answered that pilot agreements include clawback provisions that vary by pilot and are typically tied to job creation and capital investment; she said clawbacks apply specifically to the portions of the agreement tied to the unmet commitment.

Following discussion, a motion to approve was made and seconded; the chair called the vote and members said "aye." The chair announced the resolution passes.

Ending: The policies set a framework for future PILOT applications and agreements; staff will use the new application and point matrix for subsequent PILOT requests brought to the board for consideration.