The Cookeville Industrial Development Board concerned about SAIC and Ficosa being delinquent on each company’s Payment In Lieu Of Taxes or PILOT incentive package.
Putnam County Property Assessor Steve Pierce said SAIC has paid the 2024 non-compliance portion to Cookeville but not to Putnam County. Pierce said SAIC is looking to reduce its lease space to an estimated 5,000 square feet, and that reducing space could reduce the amount of the payment. When asked if SAIC has had any plans to make a payment, Pierce said there has not been much progress.
“Well, we have not made really much with them,” Pierce said. “They are just reducing their lease space, so as long as they are non-compliant, it will be calculated on that space they are using.”
Pierce said it was tough to get a hold of SAIC until after he sent a letter requesting payment of full taxes. Board Attorney Kent Moore said he believes the board should not re-negotiate the PILOT agreement since SAIC is currently delinquent on its payments.
“I would have to go look at their PILOT agreement and see, but they have not made a payment, and they have not made alternate arrangements to make payments, their in default,” Moore said. “I mean, you know, why are we agreeing to anything when they are in the state of default. It would be my position. You either make payment and get out of default, and then we can talk about rearranging that general approach.”
The board mentioned that Ficosa has paid its 2024 non-compliance to the county, but not to the city.
The board had made amendments to the PILOT agreement in 2023 after Ficosa struggled to meet the requirements due to the COVID-19 pandemic. Pierce said FICOSA has concerns about personal property within the PILOT agreement.
“They feel like there are portions of that they do not pay, but there are portions that by law can’t be abated,” Pierce said. “I mean the lease can’t be abated cause they don’t own the equipment.”
