Posted on 05/09/2017 2:20:12 PM PDT by 2ndDivisionVet
Governor Bill Haslam, Department of Economic and Community Development Commissioner Bob Rolfe, and HomeServe USA officials announced Tuesday that the company will expand in Chattanooga.
HomeServe is investing $5.5 million to construct a new building for its customer service operations in Hamilton County. The expansion will create nearly 200 new jobs over the next five years, officials said.
“I’d like to thank HomeServe for its commitment to further invest and create new job opportunities in Southeast Tennessee,” Governor Haslam said.
“Our job in the public sector is to create the best possible environment for existing and new business to create jobs in Tennessee. The continued expansion by existing employers such as HomeServe brings us closer to our goal of making Tennessee the number one location in the Southeast for high quality jobs.”
“There’s no better vote of confidence in Tennessee than when an existing company decides to create additional jobs in one of our communities,” Comm. Rolfe said. “HomeServe’s expansion is a prime example of the private investment that will enable the continued growth of Tennessee’s economy and the creation of new jobs for our residents.”
HomeServe offers homeowners monthly plans to cover major household repairs from plumbing and electrical to heating, cooling, and appliances. HomeServe partners with many of the nation’s leading utility companies and municipalities to provide coverage plans to more than 3 million homeowners, officials said.
“Chattanooga is home to our largest contact center employee group. Our dedicated employees at the center deliver award-winning customer support, which is key to our business operations,” Tom Rusin, CEO of HomeServe, said. “We are thrilled to expand our growth in Hamilton County and remain appreciative of the support we receive from the State of Tennessee, Hamilton County, the City of Chattanooga, the Chattanooga Chamber of Commerce, and the Tennessee Department of Economic and Community Development.”
Serving customers since 2003, HomeServe has operated in Chattanooga since 2010. Today, HomeServe has 320 employees in Chattanooga. The company has outgrown its existing space and will build a nearly 46,000-square-foot facility, which is expected to be operational by March 2018.
Local officials and the Tennessee Valley Authority praised HomeServe for its investment in Hamilton County.
“With this expansion, HomeServe will create close to 200 good, middle-class jobs right here in Chattanooga, bringing its local workforce to over 500 strong," Chattanooga Mayor Andy Berke said. "Today's announcement provides another example of an excellent company choosing to both invest in our city and grow our local workforce."
“HomeServe has been a wonderful partner in our business community for more than six years now,” Hamilton County Mayor Jim Coppinger said. “We congratulate HomeServe on its growth in Hamilton County as it continues to provide award-winning customer service from Hamilton County.”
“We’re proud of the work we do at the Chamber every day to create jobs for our community,” Bill Kilbride, president and CEO of the Chattanooga Chamber of Commerce, said. “We applaud HomeServe’s growth and investment in our region.”
“Congratulations to HomeServe USA on its decision to expand and build a new facility in Chattanooga, Tennessee,” TVA Senior Vice President of Economic Development John Bradley said. “TVA and the Electric Power Board of Chattanooga are privileged to partner with the State of Tennessee, the Chattanooga Area Chamber of Commerce, the City of Chattanooga and Hamilton County to support existing business and industry growth.”
Helen Burns Sharp of Accountability for Taxpayer Money said, "The local press reported today on the expansion of the local HomeServe USA office. According to the news release, the company plans to construct a new office building for its customer service/call center operations because they have outgrown their office space on Premier Drive in East Brainerd. They sell home service repair service plans across the U.S. for water, gas, electrical, HVAC, etc. (Similar to what AAA does in the area of emergency road service.)
"The Chamber of Commerce will present a PILOT application to the City Council this afternoon. (PILOT stands for "payment-in-lieu-of-taxes.) If it is approved at a future meeting, it would reduce the amount of property taxes the company would pay. The tax break request was not mentioned in any of the news coverage.
"Accountability for Taxpayer Money (ATM) is a public interest advocacy group that focuses on the wise expenditure of taxpayer dollars and transparency in government. We believe that the city and county need PILOTs in their economic development toolboxes but that they should be reserved for projects with significant public benefit that would very likely not happen without the tax break. (This is called the "but for" test.) This application raises several "yellow flags" for ATM with regard to public benefit and but for.
"ATM recommends that action be delayed on this PILOT application pending the adoption of policies policies and procedures by the City Council for the Chamber to use when deciding what proposals to move forward to the City Council and County Commission
"Here is what ATM came up with after studying questions raised by City Councilors and others on past PILOTs and looking at rules in place in other cities.
"We believe they are a good starting point for discussion. ATM would welcome the opportunity to participate in that conversation, along with the Chamber, of course.
http://www.atmchatt.com/jobs-pilots.html.
"PUBLIC BENEFIT: The approximately 200 new jobs are call center jobs in the service sector . Most existing PILOTs are for manufacturing/production companies.
"The news release says that the baseline employment is 320 today. In 2015, they reportedly had 350 employees. The company does not appear on the Chamber's 2017 list of companies employing more than 100. http://www.chattanoogachamber.com/images/uploads/pdfs/MEL.pdf. According to a report the Chamber submitted to the City, in 2012 it "directly supported" the creation of 120 jobs at HomeServe, so perhaps they have already received some assistance. This proposal would also set a precedent for incentivizing service sector jobs at call centers. How do we say no to other existing or proposed call centers which are going to be here anyway.
"BUT FOR: The company CEO stated in 2015: "We look forward to expanding our business in Chattanooga." Five years ago, he said, it looked at a number of states in which to put its "flagship" center. The company chose Chattanooga because it had a pool of experienced workers. He also cited EPB's ultra-fast Internet service as helping the business grow in Chattanooga. "There's an excellent communications infrastructure here in Chattanooga," the company CEO said. "Really, it was a no-brainer to choose Chattanooga."
http://www.timesfreepress.com/news/business/aroundregion/story/2015/nov/24/homeserve-may-serve-chattanoogexpansion/337325/
"What a great testimonial to what government should be doing to encourage economic development--support workforce development and provide infrastructure.
"HomeServe appears to be a good company and a good fit for Chattanooga. There are hundred of companies which fit that description and also pay their fair share of property taxes to help pay for needed public services.
"We should welcome new investment, new jobs and good corporate citizenship. Why would our local governments subsidize service jobs that would very likely happen here anyway?
"The city recently made progress by making positive changes to the housing PILOT program.
ATM hopes they will do the same with jobs PILOTs. The proponents of this PILOT may point out that this proposal is for a relatively small amount and for a relatively short period. That does not make it good public policy.
"The CEO of Trek Bicycles recently said to Business Insider, "Look, I don't need a tax break - Trek doesn't need a tax break. We're going to succeed and fail in the market based on how good our products are and how good our services are. As a member of the community, we have a moral duty to be a good corporate citizen, and one way you're a good corporate citizen is you pay your taxes."
David Cay Johnston, a Pulitzer Prize-Winning reporter, writes: "If it is a sound investment, the market will make it. If the investment is unsound, why should taxpayers be forced to subsidize it
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