Mitsubishi is asking Williamson County for just over half a million in economic incentives to help set up its new headquarters in Cool Springs.
Last week, the county’s Industrial Development Board, which has to review any local economic incentives, approved an economic impact plan regarding Mitsubishi’s request.
Now that plan will go to the County Commission. The commission will have to approve the incentives before they go into effect.
The deal would give Mitsubishi a maximum of $549,848 paid in annual installments. The deal expires after 10 years or whenever Mitsubishi hits the maximum payout.
The state is already planning on giving Mitsubishi $3.3 million in grants.
Mitsubishi appears to be heading to the McEwen Northside development, which is under construction in Cool Springs. The developer has listed Mitsubishi as a potential tenant on a building permit application.
The incentives for Mitsubishi would be different from most other economic incentive deals in Williamson County.
Most previous deals gave property tax breaks to companies that occupied an entire newly constructed building.
Under the Mitsubishi agreement, Williamson County would pay a portion of the building’s property taxes to Mitsubishi.
Mitsubishi plans to lease about 39,000 square feet—or about 21%—of the 184,000 square foot McEwen Northside building.
For the first year of the agreement, Williamson County would pay Mitsubishi about $31,000, or about 6% of the property taxes on the building. That number is partially based on the proportion of the building that Mitsubishi is going to occupy.
The payment would help pay for the buildout of Mitsubishi’s space in McEwen Northside
About two thirds of Williamson County property tax payments go to public schools. That portion of the property tax is always paid in full.
According to Ken Young, a lawyer who represents Williamson County’s Industrial Development Board, Schneider Electric and Nissan are the only other companies that have economic incentive deals structured in the same way. Other economic incentive deals essentially discount a company’s property tax rate. (Nissan has both types of economic incentives.)
According to the economic impact plan approved by the industrial development board, Mitsubishi will bring about 202 full-time jobs paying an average of $96,000 plus health care benefits over the course of five years.
Most of those jobs will be new hires. The company only invited about 60 employees from the California headquarter to move to Tennessee. The report also notes that the “reputation of the County as an office and headquarters destination for the automotive industry will be enhanced as a direct result of the Project.”
The report also predicts that Mitsubishi’s headquarters will result in spinoff jobs in retail, food service and entertainment.
If Mitsubishi doesn’t generate the jobs it promised, then the tax incentive will be reduced based on the number of jobs the company fails to produce.
Ronald Ligon, the chairman for Franklin’s Industrial Development Board, said Mitsubishi has not yet asked for economic incentives from the city.