Written by: Anaya Parker
The City of Collegedale originated as a farm known as Thatcher Switch, situated along the Norfolk Southern Railway. In 1916, Southern Junior College, now known as Southern Adventist University, purchased the property and renamed it Collegedale.
Several years later, in 1957, McKee Foods Corporation moved to Collegedale from Chattanooga. Eventually, Volkswagen built a plant in Collegedale as well in 2011.
These three entities changed the history of Collegedale and continue to contribute to the local economy to this day.
At the center of Collegedale is Southern’s campus, teeming with students and faculty. The university offers employment opportunities to hundreds of residents in the area, thereby boosting the local job market. Southern has positively impacted the economy in Collegedale as well.
A private consultant did an economic impact study about Southern during the 2020-2021 school year. The study, published on Southern’s website, stated that Southern generated $76 million in local business volume. The study also found that Southern generated $77 million in individual income from university expenditures.
It is estimated that 57% of the university’s expenditures are made in the Chattanooga area, accounting for $54 million in local spending. This is a substantial input into the economy of the City of Collegedale.
McKee Foods Corporation also benefits the economy and employment market in Collegedale. McKee employs thousands of workers from the Collegedale area and farther. These jobs are essential to keeping the economy of Collegedale up and running. According to the Chattanooga Chamber, in 2020, over a 15-year period, McKee invested more than $500 million in capital projects.
One project McKee Foods invested in was the creation of Little Debbie Park. This 10-acre green space, developed in collaboration with the city of Collegedale, is a top attraction in the city. The small park features a paved walkway and oversized sculptures of famous goodies produced by McKee.
A statement about McKee Foods was written in 2020 by Katie Lamb, the Mayor of Collegedale 2020 on the Tennessee Department of Economic and Community Development’s website.
“McKee Foods is an important part of Collegedale,” Lamb said. “We are grateful that the company has chosen to continue its investment in our city with a significant expansion of its operations. We are excited for the new opportunities and the jobs that this growth will create.” Volkswagen, the most recent large company to move to Collegedale, also contributes to the economy. According to Volkswagen, it has issued $435 million in local contracts. Additionally, Volkswagen employs thousands of people to work at the Volkswagen Chattanooga Assembly Plant.
According to an Economic Impact report from 2012, Volkswagen contributed an estimated $643.1 million annually in income, supplier payments, and broader employee economic spending. The state and local governments also received $53.5 million in annual taxes, according to the report.
“Our project in Chattanooga is made up of four pillars – the plant, the product, our suppliers and our people. We are committed to hiring locally, and we are convinced that we will have a best-in-class workforce,” said Hans-Herbert Jagla, executive vice president, human resources, for the Chattanooga Operations, during an interview with the Chattanoogan.
Volkswagen has invested in the community by donating over $9.7 million to nonprofit organizations since 2010, according to their website. These donations help to build the local community and benefit the city.
The economic influence of Southern Adventist University, McKee Foods and Volkswagen Chattanooga Plant significantly impacts the city. As Collegedale grows and flourishes, so will the businesses and the economy.
