Washington Co. commissioners vote to fund $600K for Mullican Flooring expansion

WASHINGTON COUNTY, Tenn. (WJHL) – The Washington County Commission gave a Tri-Cities company $600,000 to expand Monday night.

Last week, Johnson City Commissioners voted to give $600,000 toward $1.2 million project that would allow Mullican Flooring to build a new warehouse, as well as keep their operations in the city.

On Monday, Washington County commissioners approved their part of the plan to give Mullican $600,000.

The expansion plan would also create 200 new jobs in addition to the 231 jobs Mullican already maintains. The approved proposal will also allow Mullican to expand beyond its Woodlyn Road facility, and help increase space at its Roweland Drive warehouse.

The deal will allow the company to operate free from rent and property taxes for the first three years, then begin paying a gradMULLICANual rent. The total return on investment is more than nine percent.

This is not the first time county commissioners have approved funding to a company in order to keep jobs in the area.

News Channel 11 previously reported about Dentsply, a company that was part of what the county called “Project X.”

Commissioners gave that company $700,000 to keep several high paying jobs in the region.

Washington County, Tn Mayor Dan Eldridge said the Dentsply project is supposed to create 25 jobs. He commented the project is moving forward, but it is unsure right now how many jobs have been created so far.

One commissioner at Monday night’s meeting asked for an update on Dentsply, but was told he would have to wait until the next meeting.

Commissioners asked many questions about the Mullican deal, comparing it to the Dentsply project. Despite some of their arguments against the proposal, the Mullican flooring deal passed 16 to 9.

Now that it is approved, both Johnson City and Washington County will appropriate $600,000 to the Washington County Industrial Board. Then that board will provide the company with the funds to buy and expand Mullican flooring.

 

Mayor Eldridge said this project is a great way to grow the tax base, and wishes they had opportunities like this every month.

“It makes sense because it accomplishes what is needed to make Washington County and Johnson City competitive in the attracting these jobs,” said Eldridge. “But at the same time it provides a very meaningful financial return to the county.”

Mullican said the 200 jobs won’t come right away. The company plans to expand and add them over five years.

Copyright 2016 WJHL. All rights reserved.

 

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