BLOUNT COUNTY, Tenn. — Gunmaker Smith & Wesson Brands officially broke ground on its new headquarters in Maryville Friday afternoon.
The company was joined by state and local leaders such as Tennessee Governor Bill Lee, Blount County Mayor Ed Mitchell, and Knox County Mayor Glenn Jacobs in celebrating the company's historic move to the East Tennessee region.
The company announced in late September that it will be relocating from its historic headquarters in Springfield, Massachusetts to Blount County.
"From the moment we arrived here in Tennessee, there was no doubt that this state, and all you people share core values with us," said the CEO of Smith & Wesson, Mark Smith.
The main reasons Smith decided to relocate the company were cost of living, business friendliness, and Tennessee's political second amendment support.
"We felt your appreciation for the Second Amendment, your work ethic, your beautiful state, and we truly felt at home," Smith said.
According to records, the gunmaker will participate in the "Payment-in-lieu-of-Tax program" in Blount County. Through this program, the company is expected to invest a certain amount of money in property, hire a certain number of people and stay in the area for a certain amount of time.
The program was designed to help large companies move to the area, helping them equip facilities and manufacture products at their new location.
As part of the program, Smith & Wesson will be expected to improve the land it leased. That lease started at the end of September and will last until the end of 2030.
They will need to spend at least $120,000,000 on the new property, according to the agreement. Construction must also be complete by the end of December 2023.
The Industrial Development Board of Blount County and the Cities of Alcoa and Maryville said the company would be required to create 620 new jobs at an average wage of $25.97 per hour. This would generate more than $33,490,000 in direct income for workers in the area, according to records.
"It really matters because it impacts human beings in this state. It impacts families in this state, it impacts lives for good in this state," said Governor Bill Lee at the groundbreaking event.
It would also bring in $646,628 in annual local sales tax, according to officials.
"I've been bragging about this for weeks now. Everywhere I go, every speech I make," the governor said.
The company will be renting its facility from the local government, according to officials. They will need to pay 40% of the taxes they would theoretically owe to the government if they owned the property themselves starting in 2023 when construction on the facility should be finished.
At the end of the lease, Smith & Wesson will be able to buy the land and facility for $1, according to the agreement, basically allowing the company to take ownership of the property for free at the end of the program, where they may continue operating.
The state said the company's move to East Tennessee is expected to bring approximately $125 million and 750 jobs to the state in total, with 620 of those jobs located in Blount County.