LOUDON COUNTY ECONOMIC DEVELOPMENT AGENCY
Fiscal Year Ending June 30, 2000
Category Budget Spent Carryover % Spent
Auto/Travel $5,220.00 $2,843.68 $2376.32 54%
Communications 5,750.00 5,953.32 (202.32) 104%
Conference/Training/Education 5,000.00 967.73 4,032.27 19%
Dues/Subscriptions 850.00 460.90 389.10 54%
Meetings 2,500.00 1,660.32 839.68 66%
Miscellaneous/Contingency 2,000.00 1,575.84 424.16 79%
Office Equipment 2,000.00 2,471.15 (471.15) 124%
Office Supplies 4,000.00 2,757.99 1,242.01 69%
Postage 900.00 1,010.11 (110.01) 112%
Prospects 10,000.00 1,430.34 8,569.66 14%
Payroll 123,045.00 121,187.56 1,857.44 98%
Payroll Taxes/Benefits 20,069.00 18,294.00 1,775.00 91%
Utilities 1,900.00 1,313.87 586.13 69%
Totals $183,234.00 $161,926.71 $21,307.29 88%
The Loudon County Economic Development Agency is a private non-profit organization
chartered under the Tennessee’s Secretary of State Office. Originally organized as the
Loudon County Industrial Committee of 100 in 1967, the Board approved in FY 1999-2000
a change in name, membership, and expansion of the organization’s role which now includes
serving as the local Community and Economic Development Board under Public Act 1101.
These changes reflect a broadened perspective of economic development and the
interrelationship with community development programs. The Board’s membership
expanded from seven to eight members to include a representative who owns land qualifying
under the States Greenbelt Legislation. We are pleased that Mr. John Harrison, a successful
agri-business owner, accepted this appointment. Another change in membership is the
appointment of Jim Condra, replacing Shirley Reno, representing the Loudon County
Chamber of Commerce, and Eddie Simpson, replacing retired Councilman Iddus "Babe"
Connor, representing the City of Lenoir City. The Board’s unique blend of expertise and
diversity supports the Agency’s vision for stimulating both the local economy and
George M. Miller, Chairman
Ted Randolph Ex-Officio Members
Bernie R. Swiney Charles Eblen
Jim Condra Barry Baker
Eddie Simpson Bill Dunnill
Harvey Sproul Allison Beltz Sousa
Jim Curtis Dale Hurst
Patrick Phillips, President
Jeremy Stratton, Assistant Director
Kathy Knight, Administrative Assistant
STIMULATING THE LOCAL ECONOMY
For the past 33 years, the organization has been at the center for economic development
activities in Loudon County. The Board’s composition represents a strong affiliation with
local government and other local entities involved in stimulating the economic vitality of the
County. Loudon County’s successes are not a result of any one person or organization, but
the ability of our elected and appointed officials to work cooperatively to fund and promote
strong economic development initiatives. The cooperative spirit within the community
continues to propel Loudon County’s economy. Loudon County offers a competitive
environment for business opportunities maintaining one of the lowest property tax rates in
the State while continuing to expand quality services and programs.
The Loudon County Economic Development Agency has an obligation to ensure a strong
local economy, one that is built on a solid foundation. To this end our core mission is:
Participate and encourage the creation of quality and lasting community and
economic development programs which promote an exceptional pro-business
climate that encourages capital investment business locations that contribute
significantly to the local economy benefiting local government programs/services
and that offer challenging and rewarding employment opportunities to the citizens of
We also realize that the health of the local economy is affected not singularly by our efforts
but from a much broader context, principally the East Tennessee Region. Education,
LCEDA ANNUAL REPORT 2
workforce development, community infrastructure and sound marketing efforts in the
Region are vital to our prosperity. We are committed to strengthening the regional
perspective and cooperation among affiliated organizations and local governments.
HIGHLIGHTS FROM FY 1999-2000
• Loudon County Career and Higher
Education Center: From concept to
reality, this $3.5 M project began in
earnest following the fire which
destroyed the 100 block of West
Broadway in March of 1999 to
construction which began in July of
2000. Scheduled for completion the
summer of 2001, the facility will be the
new home for Roane State Community College, Loudon County Career Center
participants (Labor and Workforce Development, Adult Basic Education, and
Workforce Investment), and the Lenoir City Branch for the Loudon County Library
System. The project represents a commitment by the City and County to encourage
higher education, workforce development and community development and
downtown redevelopment. The project, which is jointly funded by the County and
Lenoir City, received $1.7 M in grant funding from the Economic Development
Administration, Appalachian Regional Commission, and Rural Development
Agency. To date, over $400,000 has been pledged from businesses and citizens for
equipment and furnishings for the Center.
• Centre Seventy-Five, Loudon County’s most recent business park began
construction with site grading in the fall of 1999. Located at the intersection of
Highway 72 and Interstate 75, the park features a mixed-use concept including
industrial, commercial, and residential parcels. Designed as a premier business park,
amenities include curb and gutter roads, regional detention/retention pond, lighting,
greenway, entrance signs, landscaping, graded site, and design guidelines. The park is
scheduled for completion in late fall of 2000. A joint project between the County of
Loudon and City of Loudon, this $6.1 M park received a $1 M grant from the
Economic Development Administration to fund infrastructure and $45,000 from the
Tennessee Department of Transportation to fund improvements to Highway 72.
• Highlands Business Park, located on the northwest quadrant of Interstate 75 and
Highway 72 is a private public partnership with the County and City of Loudon.
The partnership will provide infrastructure to open over 150 acres of prime
industrial property including the construction of a 100,000 square feet speculative
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• Matlock Bend/John Thornton residential golf and waterfront community will
be located on approximately 1,400 acres of land originally owned by Eastman
Chemical Company, which purchased the property in 1991. Eastman’s decision to
sale the property came after talks with the Agency's Board members which released a
right of first refusal to John Thornton for a $150 M project residential and golf
community. The project will feature a 36-hole golf facility licensed by the University
of Tennessee, marina, convention center and 1,800 home sites.
ECONOMIC DEVELOPMENT PROJECTS
• Kimberly-Clark Loudon Mill Expansion: $101,000,000 capital investment and 60-
70 new positions. This expansion will be the first payment in-lieu of tax project in
Loudon County that will generate $423,000 annually for five years. The State of
Tennessee has committed $750,000 in Tennessee Infrastructure Funds for the
Kimberly Clark $100 Million Expansion Announced (June 2000) - Kimberly-Clark
Corporation today announced a $101-million expansion of its Loudon, TN plant. New, state-of-the-art
tissue machines will be added at the site, the announcement stated. The new machines use proprietary
technology that has helped drive the sale of Kimberly-Clark products, which include Kleenex and Scott tissue
and paper towels. Employment is expected to increase by 60 at the Loudon plant. The expansion also
represents the first time local governments have participated in a Payment-In-Lieu-Of-Taxes (PILOT)
program. Under the agreement, the company will pay about 80 percent of its projected tax revenues for five
years, freeing more money to pay for the expansion. With several Kimberly-Clark locations competing for the
project, the Loudon County's PILOT program was instrumental in winning the expansion.
Source: Tennessee Resource Valley's Website Newsletter www.trv.org
• Malibu Boats Expansion: The expansion of Malibu Boats' Loudon facility in
Sugarlimb involves and investment of $650,000 and the addition of 25 new
employees increasing the annual payroll by $2,000,000.
• Ponce Metals: Ponce Metals' new facility will feature state of the art metal stamping
machinery for a total investment of $4,000,000.
• Nationwide Logistics Center: Phase I includes the construction of 160,000 square
foot facility estimated at $2,000,000 and creating 50 new positions with a payroll of
$1.5 M. The new facility will be constructed in Matlock Bend on Corporate Park
Drive. A second phase will generate an additional investment of $1,000,000 and will
• Pennzoil/Kwik Oil: Loudon’s Blair Bend Industrial Park speculative building will
be the new regional distribution center for Pennzoil/Kwik Oil in this 20,000 square
foot facility, which was recently approved by the County and City of Loudon.
Future plans call for expansion of the facility.
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• ArvinMeritor (Maremont): On July 1, 2000, ArvinMeritor announced a merger
that brings an additional 80 positions to the Loudon facility, which continues to be
Loudon County’s largest employer.
Top Employer Changes Name - A merger combining two of the world's largest automotive supplier
companies means a name change for Loudon County's largest employer. Maremont, which manufacturers and
distributes various types of exhaust and accessory products, is now known as ArvinMeritor. The change began in
April when Maremont's parent company, Arvin Industries Inc., announced an agreement to merge with Meritor
Source: Loudon County News-Herald, August 2-3, 2000 edition
• John Deer Commercial Worksite Products: This three year expansion effort will
generate a real and personal investment of $16,000,000 with the addition of 40 new
employees, generating $925,000 new payroll annually. Through 2003, the expansion
will generate $5.2 M in new payroll. The expansion contributed to investment by
Appalachian Regional Commission for a new substation serving the John Deere
facility and Matlock Bend.
• Loudon County Trucking: Loudon County Trucking began the construction of its
new facility in Blair Bend Industrial Park spring of 2000 on eight acres on
Williamson Drive. The new facility will replace the company’s present facility in Blair
• Concrete Wall Systems: Concrete Wall Systems' new facility in the Lenoir City
Fort Loudoun Industrial Park was completed in the spring of 2000.
• Commercial Development: The Agency has played a key role in assisting in the
location of new commercial developments predominantly in the Lenoir City area.
Our role is one of technical and information support services.
Loudon County Economic Development Agency (formerly the Loudon County Industrial
Committee of 100) -- a new name and new image/logo are recent marketing changes
approved by the Board in 1999. This change is a departure from the traditional image of
industrial recruitment and expansion and greater emphasis on diverse economic
• Unequivocally Loudon County, Tennessee: The
Agency’s first professional marketing brochure prepared
by Key & Associates was developed. This multi-paged,
three color brochure serves as our primary marketing
tool which highlights the Agency, County, and East
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Tennessee Region. Primary sections include transportation, telecommunications,
technology, education, recreation/culture, quality of life, and demographics. All
marketing materials, including reports and data books, will feature the new logo and
• www.korrnet.org/lcecdev/: Our web site was up and running this past winter and
includes the reoccurring logo and color scheme as our marketing brochure. The web
site provides an easy menu to navigate through the various sections from
demographics to available sites and beyond. The web site will continue to expand
and serve as a primary marketing medium for site consultants.
• Trade Missions and Recruiting Trips: During the fall, the Agency was
represented in a regional economic trade mission to the United Kingdom (UK),
which yielded two visits from British Companies. The trip provided contacts with
several large international banks and regional chambers of commerce in the northern
part of the UK. While marketing trips have great potential, the limited financial
resources of the Agency restrict our attendance at many missions and trade shows
which are not funded as a representative of the East Tennessee Industrial
• Existing Industry Program: Our existing industry program provides resources to
industry on such topics as labor, grants and loans, construction assistance, and
marketing. Quarterly meetings with existing industry management provides the
opportunity for local industries to interact with one another and to share insights
into issues affecting them all. Expansion of existing industry typically accounts for
80 percent of a community’s growth in labor and capital investment and in Loudon
County, this is readily apparent. Labor availability and training have dominated
meetings during FY ’99-'00. Maintaining a skilled and dependable workforce is
essential to promoting expansion opportunities during the next 10 years.
Grants assisted by the Loudon County Economic Development Agency and received for the
Granting Agency Project Amount
Economic Development Administration Sugarlimb Project $750,000
Economic Development Administration Career Center Project 1,085,000
Appalachian Regional Commission Career Center Project 500,000
Rural Development Agency Career Center Project 99,000
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Granting Agency Project Amount
Tennessee Dept. of Transportation Sugarlimb Industrial Park 40,000
Wal-Mart Foundation Agency Marketing Material 2,000
Bechtel Jacobs Development Agency Computer Equipment 9,600
Tennessee Dept. of Transportation Sugarlimb Industrial Park 62,000
Economic Development Administration Centre Seventy-Five 1,000,000
Tennessee Dept. of Transportation Centre Seventy-Five 45,000
Community Reuse Organization of East
Tennessee (CROET) Agency Computer Equipment 13,800
Tennessee Economic and Community
Development TIIP's Funds
Economic and community development is never static, but an ever changing effort on the
part of both the public and private sectors. It involves those in the field of education,
workforce training, planning, utilities and infrastructure to ensure that a solid base exists for
the future of Loudon County’s citizens. The following points reflect the Board’s direction
for FY 2000-2001.
• Education is critical if we are to attract higher capital investment and above average
• The low unemployment numbers for Loudon County, 3.1 percent for June up from
2.5 percent in May, discourages the location of certain businesses which typically rely
on lower than market wages, skills levels, and capital investment in technology and
• Our recruitment efforts should be directed towards expansion of existing industry
and higher capital investment business locations that recognize efficiencies gained in
investing in capital equipment and training for a highly skilled and educated
• Existing industry represents 80 percent of our community’s economic growth
• Quality versus quantity is essential to maintaining a stable economic climate for
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• Business location decisions are frequently based on reducing both construction
schedules and costs.
• Internet marketing will continue to play a greater role in site location analysis
especially with site location consultants.
• Revitalization of the downtown areas of Loudon and Lenoir City promote a sense of
place and economic stability.
• Intergovernmental agreements maximize resources and promote local coordination
FY 2000-2001 FOCUS
• Interactive Web Site: Efforts to expand on the initial construction of the web
site will continue this year, as the site will offer enhanced site selection
capabilities. Development of a database for sites throughout the county will
allow users to query properties based on certain attributes. Database information
includes: utility, tax and ownership information, property maps, ortho-photos,
topography, site photographs, and traffic counts.
• Construction Management Centre Seventy-Five: Complete improvements to
the park per intergovernmental agreement with the County and City of Loudon.
In addition to normal marketing efforts, the Agency will solicit efforts to
construct a speculative building on the site to promote activity.
• Construction Management Career Center Project: The Agency will continue
to serve in the capacity of construction management through the remainder of
the construction schedule which is expected to be completed July 2001.
• Marketing/Recruitment: In addition to the enhanced web site, the Agency will
work closely with the Tennessee Resource Valley, our regional marketing partner,
State of Tennessee, and contacts with site consultants to improve the County’s
exposure. Site grading and completion of infrastructure at Centre Seventy-Five
will assist in attracting interest to the area.
• Design Build Program: One of the more important factors in site location
decisions involves the ability of a prospect to select a site and be in production
within a narrow time frame. For this reason, communities have encouraged the
construction of speculative buildings within the community. Under the design
build concept rather than build a speculative structure a team is formed to
develop a virtual building (on pre-graded site) complete with
LCEDA ANNUAL REPORT 8
engineering/architectural plans, construction cost, construction schedule, and
pre-approved local permitting. This approach avoids many of the delays
associated with a typical construction project and eliminates the need to build
and finance a speculative building.
• Lenoir City Car Works Redevelopment: The reuse of the Lenoir Car Works
Site is a priority for the Agency and the community. The project will, in most
likelihood, require cooperation from Lenoir City and the County, Norfolk
Southern, and regulatory agencies involved in site remediation. It is hoped that
an appropriate agreement can be reached during the year to allow redevelopment
for industrial use.
• Commercial Development Assistance: The Agency will continue to provide
technical and information support for commercial developments within the
• Existing Industry Program: Our existing industry program involves assistance
in obtaining State grants, loans, and training assistance for expanding industries.
Our plant mangers' meetings, which are held quarterly, will continue for the year.
Programs will focus on State regulatory issues and personnel matters which local
industry confront on a daily basis.
• Trade Shows and Trade Missions: Activities include four to six trade
missions/recruiting trips to targeted cities with direct flight connections from
Knoxville, participate with State Economic and Community Development and
Resource Valley in trade missions within the United States and abroad and
improve contacts with site location consultants
• Downtown Redevelopment: Continue to promote the revitalization of the
downtown areas for Lenoir City and Loudon with the focus on stimulating new
capital investment in businesses and construction/renovation.
• Matlock Bend Development: The Agency will continue to serve in the role as
the local liaison with the developer and project manager in this 1400-acre mixed-
use, residential/commercial, waterfront golf community.
LCEDA ANNUAL REPORT 9