The Hawkins County Commission voted Monday to postpone consideration of a new office lease contract for the Hawkins County Industrial Board which would increase rent each year for the next three years.
The IDB currently pays $950 per month for 1,674 square feet on the second floor above the Rogersville Vision Center at 107 E. Man Street. The IDB moved there in August of 2009 from its previous location in the Clay-Kenner House, which was closed at the time due to concerns with the structural integrity of that historic house.
The proposed rent rate schedule would increase from the current $950 per month, or $11,400 per year to $1,100 per month, or $13,200 per year in 2024-25.
It would then increase to $1,250 per month, or $15,000 per year in 2025-26; and $1,400 per month, or $16,800 per year in 2026-27.
During Monday’s Budget Committee meeting Commissioner Jason Roach asked if there is any county owned office space available for the IDB to move into.
County facilities manager Sarah Davis said the county doesn’t have office space available with a conference room that would meet the IDB’s needs. She noted that the county also rents office space for the Hawkins County Agricultural Extension Office and and 4-H offices.
The IDB began holding its monthly meetings at the Hawkins County Gas Utility in Rogersville during COVID because the conference room in its office was very cramped for that many people during the pandemic.
County Mayor Mark DeWitte noted, however that industrial prospects meet IDB officials in that conference room on a regular basis. The IDB is currently courting multiple prospects for the Phipps Bend Industrial Park, including a new large manufacturing facility on 100 vacant acres; and a large electricity storage facility that would increase county property tax revenue by more than $2 million annually.
DeWitte said there is no office space available in his building on Washington Street for the IDB.
“When a company comes in and does negotiations with them they need a place to do that in, and spread out,” DeWitte said. “This is basically the whole floor for $1,100 per month, and that includes the utilities.”
The new lease contract was recommended by the Budget Committee by a vote of 4-2, with commissioners Danny Alvis and Josh Gilliam opposed. During the commission meeting, however, Roach asked that the resolution be postponed until the June 24 meeting.
The current lease ends June 30.
Hawkins County IDB Coordinator Rebecca Baker told the Review their current location is the first place the clients usually see, and making a good first impression is important during industrial recruitment.
“We have spent money through the years to remodel the office,” Baker said. “It meets our needs so well. Commissioners need to take into account that the space includes all utilities and we have space to house all of our documents and maps, as well as a conference room for private meetings. We used the conference room for years for board meetings but we had to move them to the Hawkins County Gas Utility for space during COVID, and we were starting to have a lot more visitors present at the meetings.”
Baker added, “Basically, U.S. Bank donated the space to us as well as the Chamber of Commerce and we paid them enough rent to cover our utilities. Rogersville Vision Clinic is only trying to recoup some of their investment they have put into refurbishing the building. We are still paying way below the average rate for a lease.”
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