NN, Inc. has until May 2019 to meet incentive contract

JOHNSON CITY, TN (WJHL) – As NN Incorporated prepares to relocate its corporate headquarters from Johnson City to Charlotte, North Carolina, the company has until May 2019 to come through on its promise of creating 160 jobs or else risk repaying some of the incentives it has received.

The State of Tennessee gave the company $2 million in incentives while the Johnson City Industrial Development Board and Johnson City Commission okayed what equates to roughly $100,000 a year in property tax savings, according to Washington County Economic Development Council CEO Mitch Miller.

As we reported Friday, the relocation is expected to result in the loss of around 20 management jobs.

Miller said before the company hired people in recent months, 70 people worked at NN, Inc. as of April.

In order to avoid repayment locally, Miller said the company needs to employ 160 people in 2019 at an average salary of roughly $56,000 a year.

The company won’t file its first progress report until May 2018, according to its incentive contract.

“…once the report has been submitted we will adjust the abatement if the 160 jobs has not been met,” Miller said. “We plan to work with NN and their shared services division and do what we can to help expand their presence here in Johnson City.”

A spokesperson for the Tennessee Department of Economic and Community Development said the agency is looking into the recent development.

“The Accountability Agreement contains clawback provisions in the event that NN, Inc. does not fulfill its job commitment to Tennessee,” Carly Schroer said. “ECD is looking into this recent development and will take any necessary and appropriate actions to protect the State’s interest.”

Washington County Mayor Dan Eldridge said Friday he’s hopeful additional job creation locally will fulfill the company’s incentive requirements of 160 jobs by May 2019.

Calls to NN, Inc. went unreturned Wednesday.

Copyright WJHL 2017. All rights reserved.

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