Economic Impact Study Shows East Tennessee Regional Megasite
Will Generate Huge Economic Impact for Jefferson County
Once certified, the East Tennessee Regional Megasite in Jefferson County has the potential to produce more than 4,900 jobs and more than $2.7 billion in economic impact annually, a study by a firm that specializes in economic impact studies shows.
The study by Younger Associates said that more than 7,000 jobs would be created in the first year for construction of a plant locating on the site and more than $335 million paid in wages to employees. The construction phase alone would generate more than $2.7 billion in economic impact.
After the plant is built, the company at the site would sustain more than 4,900 permanent, high-paying jobs in Jefferson County, which would pay more than $313 million in wages. The East Tennessee Regional Megasite would generate $2.7 billion in economic impact each year in Jefferson County.
“This study shows the tremendous opportunity in Jefferson County’s hands and underscores the importance of the work of the Economic Development Oversight Committee in examining the feasibility of the megasite,” said Garrett Wagley, director of economic development at the Jefferson County Chamber of Commerce.
“In a recent survey, Jefferson County residents identified the availability of jobs as the No. 1 issue facing the county, and the megasite is in a perfect position to help us produce the kind of high-quality jobs needed to keep our children and grandchildren in the county. The study is an excellent indicator that we need to proceed with the process.”
In addition to the economic impact and jobs created by the megasite, a large-scale manufacturer would contribute significantly to local taxes. The revenue from these taxes would enhance education and improve infrastructure. The economic study said that Jefferson County and the Town of Dandridge would see $8.8 million in increased local tax revenue from a certified megasite.
The study was commissioned by the Jefferson County Economic Development Oversight Committee (EDOC) as part of extensive research to determine the feasibility of the East Tennessee Regional Megasite proposed at the junction of I-40 and I-81.
On Jan. 9, EDOC officials announced plans to pursue the certification process for the proposed 1,800-acre megasite. A leading site selection firm, McCallum Sweeney, identified the area as an ideal location to attract a major automotive manufacturer and its suppliers because of its high visibility and accessibility to two interstates highways; the availability of a highly skilled workforce; and its strategic position in relation to other manufacturers and supporting suppliers.
After determining the huge potential the megasite has for jobs and economic impact, EDOC is moving forward with the beginning stages of the 12- to 18-month certification process and is currently meeting individually with property owners to secure the necessary land.
“The Jefferson County megasite would go beyond creating jobs and paying out wages,” said Wagley. “Because of the growth in taxes, future generations will see an improved educational system, better roads, better utilities and overall better opportunities.”
Less than 30 percent of the Jefferson County’s assessed value is in industrial and commercial property, placing a high burden on residents – higher than any other surrounding county. This means continued increases in property taxes just to sustain basic educational needs and government services.
Five megasites have already been sold to major manufacturers in the Southeast. These sites went through a similar process of site certification and have brought major economic impact to the communities where they have located. Together, the megasites, including Volkswagen in Chattanooga and Toyota in Mississippi, generate $5.5 billion annually and sustain more than 32,000 jobs.
“The potential for monumental economic impact is demonstrated in the study by Younger Associates and evidenced by the five successful megasites already generating billions of dollars for local economies across the Southeast,” said Wagley. “Our county is ready for change. It’s ready for jobs. We owe it to ourselves, our children and our grandchildren to move forward with our plans to certify this site.”
The complete Younger Associates study can be found on www.ETNmegasite.com/benefits. This economic study is based on a model of the Jefferson County economy, which uses local employment patterns, commute patterns, wage rates, spending patterns, current city and county tax rates and collection ratios, as well as other local data and historical trends. Younger Associates has conducted hundreds of economic impact studies across the United States for over 20 years, and the firm’s methodology is recognized by the International Economic Development Council.
The Jefferson County Commission Budget Committee will meet on Monday to approve funding for the initial stages of the certification process.
For more information, visit www.ETNmegasite.com or call the Megasite Info-Line at 865-397-4285. These resources have been set up to provide continuously updated information about the project.
