Gary Farlow

CLEVELAND, Tenn. — State and local governments have been asked to provide $3 million to help move Whirlpool equipment from Mississippi to Cleveland.

The Cleveland City Council voted unanimously Monday to provide $1 million in fiscal 2009-10. The Bradley County Commission will vote July 21 on whether to match it. The Tennessee Department of Economic Development already has committed $1 million plus some tax incentives.

Gary Farlow, Cleveland/Bradley Chamber of Commerce vice president for economic development, told council members Monday how the $3 million package will be administered.

“It is like a grant,” he said.

Since local governments can’t lend money to a private corporation, the funds will go to the Economic Development Authority. The authority will contribute the money to Whirlpool and then forgive 10 percent of the sum each year for a decade.

If the company were to move away, it would pay any unforgiven amount.

Mr. Farlow told county commissioners a unanimous vote of support next week would send a positive message not only to Whirlpool about the community but to current industrial prospects.

“The key is they gave us a time frame that puts this in next year’s budget,” County Mayor D. Gary Davis said.

Whirlpool announced last week it will close its Oxford, Miss., facility and move 500 jobs to Cleveland.

But Mr. Farlow said the decision could have gone against Cleveland. The local plant could have been left with 800 or so jobs instead of adding 500 more.

The local facility, with about a $50 million payroll, would have left a huge gap in Cleveland’s economy, including other industries linked to it as suppliers, Mr. Farlow said.

Commissioners who made comments Monday favored the proposal.

“How much does this council feel those jobs are worth?” asked Mayor Tom Rowland. “It’s not giving a million dollars. It’s an investment.”

Councilman Richard Banks recalled that former City Manager Joe Cate was asked as a parting project to do a survey of worst-case scenarios for Cleveland. The loss of Whirlpool was on the list.

“If that happened, a sizable tax increase would be necessary,” Mr. Banks said.

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