Total Cost of Electrolux Deal to TN Taxpayers: $173.4 Million

The state’s $101 million commitment to Memphis’ Electrolux plant in the waning days of former governor Phil Bredesen’s term still sticks in Lt. Gov. Ron Ramsey’s craw, reports Richard Locker..
The East Tennessee Republican has previously expressed dismay at terms of the Electrolux deal negotiated in December by city, county, state and Chamber of Commerce officials. He is particularly unhappy about the direct commitment of $97 million cash to build and equip the manufacturing plant and the deal’s lack of a “clawback” provision that would require the company to repay the state if its commitment to 1,250 jobs doesn’t pan out.
Ramsey reiterated his support for the funding because, he said, the state must honor its commitment.
But he’s calling in one of the architects of the deal — former state Economic and Community Development Commissioner Matt Kisber — today to talk about both the Electrolux deal and a separate deal to land two Amazon distribution centers in the Chattanooga area.
Ramsey’s planned meeting with Kisber will occur just hours before the House of Representatives is scheduled to consider a $106.4 million state bond issue to finance $77 million of the Electrolux costs and $29.4 million toward another Bredesen-era project, Wacker Chemie’s polycrystalline silicon manufacturing plant in Cleveland, Tenn. The 20-year general obligation bonds will cost Tennessee taxpayers $173.4 million to repay, including $67 million in interest
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