$22.5 Million EDA Grant Will Strengthen Mountain City’s Infrastructure and Economic Future

The Town of Mountain City is receiving a historic investment in its future.

The U.S. Department of Commerce has awarded the Town of Mountain City $22.5 million in Disaster Supplemental funding through the Economic Development Administration (EDA) for critical wastewater infrastructure improvements designed to strengthen the community’s resilience and support industrial and economic growth throughout the region.

The funding opportunity was made available following the devastating impacts of Hurricane Helene in 2024, which caused widespread flooding, landslides and significant damage to Mountain City’s wastewater treatment plant and collection system.

Helping Mountain City secure this transformational investment was the First Tennessee Development District (FTDD), which assisted the Town with its EDA grant application and worked alongside local partners throughout the application process.

Mountain City Mayor Jerry Jordan expressed his gratitude for the award, calling it a record-breaking grant for both the Town and Johnson County.

“The Board wishes to thank the many people and organizations that supported the application,” Jordan said, recognizing the contributions of Bill Forrester with the First Tennessee Development District, Cannon & Cannon, Inc., Johnson County Mayor Larry Potter, City Recorder Audra Gerty, and Lucas Blankenship, the regional U.S. EDA representative serving Tennessee.

Jordan also noted the competitive nature of the application process and said the Town was thrilled to receive the announcement after months of waiting.

Mountain City’s wastewater treatment plant was originally constructed in 1969. The facility has been improved and upgraded over the years, but Hurricane Helene caused catastrophic damage. During the storm, Johnson County experienced record-breaking rainfall, resulting in major flooding, landslides and creeks rising beyond their banks. The wastewater treatment plant was submerged under several feet of floodwater, damaging the site, electrical systems, and administration building.

The collection system also suffered extensive damage. Manholes, sewer lines, and pump stations, many located near streams, were exposed and damaged by erosion. The storm also caused significant inflow and infiltration into the sewer system.

The Town has already spent approximately $300,000 on recovery efforts at the wastewater plant, with much more work needed to fully restore the facility.

The EDA funding will provide the resources necessary not only to address the damage caused by Helene but to build a stronger, more resilient wastewater system capable of supporting Mountain City for decades to come.

The $22.5 million federal grant will be matched with $2.5 million from the Town of Mountain City’s water and sewer fund, bringing the total investment to $25 million.

The project will include construction of a flood- and storm-resistant operations building at the existing wastewater treatment plant, along with renovation or replacement of damaged treatment facilities and equipment.

The project will also provide substantial rehabilitation of the wastewater collection system, including:

• Sewer manholes

• Lift stations

• Sewer lines

• Electrical and mechanical systems

• Treatment plant equipment

• Critical operations and administrative facilities

The improvements are designed to provide a more reliable and resilient wastewater system for the Town’s existing customers while creating the capacity needed to serve future residential, commercial, and industrial development.

For Mountain City, this project is about much more than repairing damage from a historic storm. It is an investment in the community’s economic future.  The Town’s water and sewer systems currently encompass nearly 300 miles of underground waterlines, more than 90 miles of underground sewer lines, four water treatment plants, 14 water tanks, 16 pump stations and the wastewater treatment plant.

Maintaining reliable infrastructure across such an extensive system is critical to the community’s ability to attract and retain businesses.  As Mountain City and Johnson County work to recover from Hurricane Helene, and following the loss of Parkdale Mills, having the necessary infrastructure to attract new jobs and investment is more important than ever.  Reliable water and wastewater service is a fundamental consideration for companies looking to locate or expand. Communities with strong infrastructure are better positioned to compete for new industries and provide the services businesses need to succeed.

FTDD was proud to assist Mountain City in pursuing this competitive federal funding opportunity and bringing the Town’s vision for a stronger wastewater system to fruition.  This project demonstrates what can happen when local governments, regional organizations, engineering professionals, and federal partners work together toward a common goal. The result will be more than repaired infrastructure. It will be a stronger, more resilient Mountain City, which will be better equipped to support its residents, attract new businesses, create economic opportunities, and remain competitive for generations to come.