JOHNSON CITY, Tenn. (WJHL)- NN, Inc. has announced its shared services center in Johnson City will be closing at the end of June.
In September 2017, company officials announced that NN, Inc. was moving its headquarters from Johnson City to Charlotte, N.C.
In a press release, a company spokesperson said, “The move aligns with the Company’s strategic focus on operating excellence and efficiency as it looks to streamline services and reduce cost as part of the NN Operating System. NN expects to retain certain roles and functions through relocation and other arrangements.”
Local economic officials issued a statement responding to the announcement:
Local economic development officials will enforce a tax incentive agreement with NN, Inc. (NN) in the wake of the company’s Thursday announcement it would close its shared services center in Johnson City at the end of June. NN has received property tax incentives since 2015 after opening its headquarters in the former SunTrust building in 2014.
Thursday’s announcement comes less than two years after NN cut its corporate workforce in Johnson City by relocating its corporate jobs to Charlotte, N.C. Northeast Tennessee Regional Economic Partnership (NETREP) CEO Mitch Miller said once NN has no employees in Johnson City, it will lose any remaining annual incentives in its “payment-in-lieu of tax” (PILOT) agreement with the Johnson City Industrial Development Board.
“We regret the company’s decision,” Miller said. “As long as it owns its building here, NN will owe property taxes due based on the PILOT agreement.”
Based on NN’s job creation projections in 2014, the IDB agreed to a schedule of incentives for city and county property and “personal property” (equipment) taxes. The 10-year PILOT agreement set the rate at 0 through 2019 with the in lieu payment increasing annually through 2024.
“Beginning this year, the company must show it is employing at least 160 people here or pay additional pro-rated amounts based on the percentage it falls below that employment number,” Miller said. That jobs report is due May 9 and applies to the number of employees as of March 10. The building at 207 Mockingbird Lane is valued at $6,095,000 for tax purposes.
Miller said NETREP has closely monitored NN’s presence in Johnson City since the headquarters announcement. “This news is disappointing but not shocking. The PILOT agreement protects taxpayers.”
– Northeast Tennessee Regional Economic Partnership
Stay with News Channel 11 as we continue to follow this developing story.