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Alstom tax break questioned: Chattanooga, Hamilton County mayors say company didn't achieve jobs promise
Are there other Alstom Powers out there, businesses that entered special tax incentive agreements with the city but haven't lived up to them?
Chattanooga Mayor Andy Berke and Hamilton County Mayor Jim Coppinger rightly revealed the city and county are in a dispute with the local manufacturing and engineering plant because it didn't meet the required 300 additional jobs it said would be generated under what is called a payment-in-lieu-of-taxes (PILOT) agreement it signed in 2008.
The agreement, which was signed under previous mayoral administrations and was to last nearly two decades, waived payment of the company's city and county property taxes, with the exception of the small portion dedicated to schools.
Alstom met -- and exceeded -- the amount of capital investment the agreement called for it to make and, according to the company, contributes $15 million annually to the local economy. But it created only 140 jobs.
The company offered, going forward, to pay 14 percent of the taxes it owes, but Berke said that wasn't enough. Its tax breaks for 2014, according to the city's website, were about $2 million.
What is important now, with all such agreements under scrutiny, is for city and county governments to be transparent about them. If other businesses haven't met their goals within the time allotted, pursue them with the same vigor as they have Alstom. And give the public a rundown of how each particular PILOT agreement is faring.
The city and county already have stiffened the provisions in the agreements they sign. That's a big improvement. But since companies with agreements are not paying the taxes they otherwise might, the taxpayers who are paying their share deserve to know what they are getting in return.