Relocating and Expanding Businesses Tennessee has been an especially popular state for companies seeking to relocate or expand their corporate headquarters or operations. Waller Lansden has represented many of the most significant companies relocating to, or expanding within the state, and we maintain an interdisciplinary team of attorneys skilled in the many nuances of this type of work.
Incentives available to relocating or expanding businesses in Tennessee can be conveniently divided into two categories: discretionary incentives that are negotiated on a case-by-case basis and incentives that are set by law and are available to all businesses that engage in qualifying activity. Most incentives require discretionary allocations by governmental entities and potential utility vendors. There are four areas where discretionary assistance is available: infrastructure improvements, human resources, property tax abatements and regulatory approvals. Each of these should be explored by a business considering a move to, or an expansion in, Tennessee. The incentives that may be negotiated will reflect the perceived value of the move or expansion to the proposed area, the money currently available, the effectiveness of the incentive and whatever political considerations may be applicable. Obtaining attractive levels of discretionary governmental assistance requires an orchestrated effort by the client and its legal counsel, state government, local government, potential vendors to the client and local economic development groups (including the Chamber of Commerce) among others. Our firm's attorneys have extensive experience in each of the areas relevant to this task. Non-discretionary incentives are those which are available to all businesses in Tennessee without the need to negotiate their availability or amounts. In Tennessee, all of the non-discretionary incentives are tax-related. Tennessee has enacted statutes that favor certain economic activities by granting tax credits or exemptions. The cumulative effect of these statutes creates a very favorable tax environment in Tennessee for relocating or expanding businesses when measured against competing states. Waller Lansden maintains an active and nationally recognized state taxation practice that is essential to an understanding of potential business cost savings of a proposed move or expansion, and also the maximization of relocation and expansion incentives, once the decision is made to go forward. Relocating and Expanding Businesses: Significant Engagements Waller Lansden represented a major Japanese automobile manufacturer in bringing its first manufacturing facility to the United States. Our firm represented the client in every facet of its negotiations with all state and local authorities in Tennessee. The representation included the creation of an incentive package for the client that included property tax incentives, material infrastructure improvements, and educational programs in connection with the relocation of Japanese engineering and management personnel to Tennessee and the company's potential workforce in Tennessee. Waller Lansden also represented the company in securing options to purchase the real estate for the facility. Following the negotiation of these incentives, the company selected Tennessee over other competing states. Waller Lansden represented the client in implementing the incentive packages and completing the real estate acquisition. These services included representation of the company and acting as bond counsel in several bond issues. Waller Lansden was engaged to serve as counsel by a major U.S. automobile manufacturer when it decided to locate the headquarters and manufacturing facilities for a newly formed subsidiary in the State of Tennessee. Our firm secured options for the purchase of the 2,000 acre facility campus and participated in all facets of the negotiation of the incentive package that included substantial infrastructure improvements, utility incentives, and property tax incentives. Following the selection of the site, Waller Lansden completed the negotiation and implementation of the incentive packages and the site acquisition. These services included representation as company counsel and/or bond counsel in connection with the issuance of tax exempt pollution control bonds and water and sewer facility improvement bonds, as well as in connection with insurance of several series industrial development revenue bonds. Our firm's Real Estate Group represented the company in the completion of the site acquisition and in numerous annexation and ongoing issues. We also represented the client in its negotiation of utility agreements and in a host of other matters associated with the facility. Waller Lansden represented the world's largest investor-owned healthcare company, in the relocation of its corporate headquarters to Nashville. This relocation was critical to Nashville's continued recognition as the nation's capital for proprietary healthcare companies. In connection with this relocation, Waller Lansden worked closely with the client to formulate an overall plan for seeking state and local tax relief commensurate with the opportunities it would provide to the state and local economies. Our firm represented this client in its negotiation of discretionary property tax abatements and in the preparation, negotiation and adoption of necessary local legislation and agreements authorizing such abatements. Waller Lansden also served as counsel and as bond counsel in the issuance of revenue bonds by the local Health and Educational Facilities Board in order to implement the property tax abatements. We also represented this client in the negotiation and preparation of state legislation implementing several favorable changes in Tennessee tax laws affecting the company, as well as in several material state tax ruling requests. Waller Lansden represented a major Japanese tire company in connection with several material investments in Tennessee. In our initial representation of the client, we represented the company in its acquisition of an existing Tennessee tire manufacturing facility and the implementation of property tax abatements associated with the facility. This investment represented the client's first operation of a tire manufacturing facility in the U.S. We also represented the client in connection with the company's 1989 decision to construct one of the world's largest and most modern tire manufacturing facilities in Tennessee. Our representation of this client in these matters addressed a wide variety of issues under state and federal law, including tax, finance, environmental and real property issues. In each of these matters our firm represented this client in its negotiations with applicable local governments and with the State of Tennessee regarding tax abatements, water, sewer and roadway infrastructure improvements and other incentives applicable to the projects. Waller Lansden also served as the client's counsel and bond counsel in connection with the issuance of bonds by the local industrial development boards necessary to implement the tax abatements for both of these projects. Our firm's Real Estate Group represented the company in connection with its acquisition of the numerous tracts of real property that comprise the facility's new 900 acre campus. Waller Lansden served as counsel to Tennessee's first major league professional sports franchise in connection with the relocation of the franchise to Nashville. We advised the client on a broad spectrum of legal and governmental issues relating to the relocation of the franchise. Waller Lansden also participated in all facets of the negotiation and preparation of the agreements governing the relocation of the franchise to Nashville, the construction and development of the new state of the art stadium in Nashville, the lease of the stadium to the client and the other contractual relationships between the franchise, on one hand, and the State of Tennessee, the Metropolitan Government of Nashville and Davidson County and the Sports Authority of the Metropolitan Government, on the other hand. Waller Lansden represented the country's largest manufacturer of snack foods in connection with property tax incentives for the company's new manufacturing facility in Tennessee. The firm served as counsel and as bond counsel in connection with the issuance of industrial development revenue bonds necessary to secure the property tax savings. |