KINGSPORT, Tenn. (WJHL) — The Kingsport Board of Mayor and Aldermen approved a tax incentive agreement with Eastman Chemical Company in connection with the company’s recently-announced plastic recycling facility project.
During its regular meeting Tuesday night, the board voted 5–1, with Alderman Jennifer Adler abstaining, on a resolution authorizing the Kingsport Industrial Development Board to enter into a payment in lieu of taxes, or PILOT, agreement with Eastman.
Eastman plans to invest $250 million to build a new plastic molecular recycling facility at the company’s Kingsport plant. In return, under the PILOT agreement, the company would see up to $10.5 million in property tax savings over 10 years.
Under the agreement, Eastman will pay about $4.9 million in property taxes to Sullivan County, instead of $10.8 million, and pay about $4 million in property taxes to the City of Kingsport, instead of $8.6 million.
The city would also obtain about five acres of land adjacent to Borden Park as part of the agreement.
Eastman says the new recycling facility will create 90 jobs when it opens. Construction will begin in March with the facility expected to be “mechanically complete” by the end of 2022.