The City of Knoxville and Holston Gases Inc. announced today that the company is buying the Brookside Mills property where it will build a state-of-the-art plant, warehouse and office complex as part of an expansion.

The company - which distributes industrial, medical and specialty gases across a several state region - will also move its main offices to the new location on Baxter Avenue in the I-275 corridor.

Holston Gases will also continue operations at its existing location on the Tennessee River just across from downtown Knoxville. Holston Gases was founded in Knoxville in 1958 and has grown from a small business into one serving customers in nine states from 24 different locations.

The City of Knoxville, through the Knoxville Industrial Development Board, bought the Brookside property several years ago and it lies in the heart of the city's Downtown North Redevelopment Area. The city is particularly interested in the revitalization of the I-275 corridor, where numerous industrial sites can be redeveloped.

"One of the goals of the city's Downtown North Redevelopment is to encourage the growth of not only residential and retail elements – but also business and commercial growth," said Mayor Daniel Brown. "Bill Baxter could have chosen a lot of other places but he chose to stay home. We're grateful for his decision to expand his business in the core of the city. It's going to result in new jobs and is a great step forward for the I-275 corridor."

Baxter is the chairman of Holston Gases, which was founded in Knoxville by his father, Pat Baxter, and Bob Walsh in 1958.

"We are proud to be able to expand in our hometown of Knoxville and continue to support our growth throughout the southeastern U.S.," Baxter said. "We're proud to invest further in Knoxville and to create more Knoxville jobs."

Holston Gases has agreed to buy the 19.5-acre property at 523 Baxter Avenue for $1.8 million. The purchase still has to be approved by the Knoxville Industrial Development Board.

The company has indicated it will move quickly to develop its property once the deal is concluded.

"We're very happy this worked out, and we will be working with a top flight Knoxville contractor and Knoxville architect to build an attractive, efficient building, well-landscaped, that will add momentum to the positive redevelopment that has begun to occur along the corridor," Baxter said.

Brookside Mills was built in 1885 and at its peak the textile mill employed about 1,000 people. The more than a dozen buildings that stood on the site had been razed by 1997.

The I-275 Corridor once thrived with industry though it the area later fell on hard times when those enterprises either collapsed or left Knoxville. Downtown North began reviving in recent years with an influx of new businesses in the Happy Hollow area and substantial housing investment by individuals and families moving into the area.

In 2008 SYSCO, opened a food distribution center in the I-275 business park and last month Three Rivers Market opened its doors on Baxter Avenue.