City of Chattanooga Industrial Development Board (IDB) — Meeting Summary
Date/Time: Mon, Oct 6, 2025 • 11:03 AM–12:29 PM
Location: IDB Meeting (City of Chattanooga)
1. Call to Order | Pledge 🇺🇸 | Quorum (4:55–9:04)
• Meeting called to order at 11:03 AM. Quorum confirmed; meeting was properly advertised.
• Chair transition needed due to former Chair Carrie Hayes relocating to Nashville.
2. Officer Elections (5:04–8:45)
• Chair: Althia Jones nominated and elected. (5:34–7:02)
• Vice Chair: Gordon Parker nominated and elected. (7:02–7:34)
• Secretary: Jim Floyd nominated and elected. (7:40–8:09)
• Asst. Secretary: Nadia nominated and elected. (8:17–8:45)
3. Minutes — Aug 4, 2025 (9:05–9:18)
• Minutes approved. (Motion/Second; voice vote)
4. Public Comments (9:23–13:30)
• Helen Burns Sharp (Accountability for Taxpayer Money) (9:33–13:30)
– Topic: Northgate Mall TIF application.
– Q1: Legality of using local option sales tax with TIF; requested written legal opinion from TIF counsel with expertise.
– Q2: Independent third‑party review (Policy 4.11): City Council denied waiver; urged completing the review before advancing application.
– Timing suggestion: Consider continuing the meeting to a date certain if legal opinion/third‑party review imminent.
5. Quarterly Finance Reports — Eleanor Lou (14:01–18:38)
• BW Grant: No changes; 99.0% spend incl. contingency. (14:01–16:01)
• IDB Economic Development Program Summary: Remaining balance $2,245,000. Includes $588,000 transfer (prior CNE Small Business funds) completed Aug 15, 2025; reflected in Fund 14 balance $1,584,000. (14:21–15:50)
• TIF Report: No changes since July. (15:55–16:01)
• Wastewater Program Summary: Active E2I2 and SPOI programs; $33,000,000 pass‑through spend to date; 100% reimbursed by City. (16:08–16:38)
• State Comptroller Letters / GASB 100: Prior period labeled incorrectly; should be “error correction” (re: $313,000 interest AP FY23). Correction made in FY25 statements; appears once (prior year column) and will not recur. (16:43–18:38)
6. Northgate Mall TIF — Application Acceptance & Process Setup (18:52–1:08:00)
6A. Resolution to Accept Application & Forward for Intent Resolutions (18:52–1:04:02)
• Staff: Sharita Allen (City EWD). Staff report cites statutory authority, city/county TIF policy, plan alignment (RPA 2003 Commercial Centers; Plan Chattanooga: Hixson/Red Bank 2024 draft — facilitate redevelopment of Northgate into compact, walkable center). (19:30–36:06)
• Rationale: Existing public stormwater flows into private sewer on mall campus (public health & risk). Developer proposes developer‑backed TIF; requests property tax increment + portion of local option sales tax increment from certain mall sales. (21:21–23:03; 24:19–26:44)
• Declines: Assessed value down from $50M (2017) → $28M (2024); property tax and sales tax declines impacting General Fund. (24:19–25:10)
• Boundary includes Northgate Mall and surrounding privately owned parcels; eventual dedication of new sewer & stormwater to City; water to HU District. Library nearby at end of life. (25:26–27:02)
• TIF 101: Base taxes continue; increment (orange) repays eligible costs; after 20 years, full value returns to taxing jurisdictions. (27:08–28:37)
• Waivers: Council approved 2 waivers; denied waiver of Policy 4.11 (Applicant Affidavit & Independent Third‑Party Review) — third‑party review required prior to EIP draft on Nov 3. (28:43–31:05)
• Legal: Betsy Knox (Bass, Berry & Sims) — legal opinion drafted: authority for sales tax contribution via T.C.A. § 7‑53‑315 (separate from TIF statute); using increment from on‑site sales and capped; not relying on brownfield/tourism provisions. (53:05–57:03)
• Developer: CBL Properties (John Michell) — owns mall core (Parcel 13) and some periphery (e.g., BI Developments LLC on Parcel 10); private system currently serves ~12 adjacent properties / ~20 businesses; failure would disrupt TJ Maxx, Aubrey’s, CAVA, Miller’s Ale House, etc. (40:15–45:04; 48:00–49:09)
– Taxes: Real property taxes declined $1.1M (2017) → $575k (2024) (~50%↓). (44:01–44:15)
– Developer‑backed TIF: CBL fronts cost; repaid only from new increment; infrastructure dedicated public on completion. (45:10–46:24)
– Without project: risk of low‑value uses (e.g., self‑storage), lender take‑backs, blight. (46:30–47:12)
• Board Q&A highlights:
– Northgate Mall Drive loop: privately owned/likely substandard width; suggestion to evaluate conversion to public road within EIP scope; council may waive standards. (51:02–52:36)
– Third‑party reviewer: TIF counsel engaging Waters Reed Public Finance Group; PFM also advisable as City FA. (52:41–53:43)
– Term: 20‑year based on conservative payback; could repay faster if central mall redevelops. (55:42–56:13)
– Sales tax legal authority & history: Discussion of AG opinions (none), Clean Water Act-era changes, ~5,575 LF of sanitary sewer replacement; roadway disruption noted. (57:09–58:33)
• Action: Resolution approved (1:03:02–1:04:02). Amendment to strike Policy 4.11 waiver acknowledged (already removed in updated packet).
6B. Application Review Committee Setup (1:04:02–1:08:00)
• Meeting date set: Mon, Oct 20, 2025, 9:30–11:30 AM (Council Committee Room). (1:06:00–1:07:53)
• IDB reps appointed: Nadia and James. (1:06:39–1:07:27)
• Committee composition: 2 – IDB; 2 – City Council; 2 – Mayor; 1 – Chamber.
7. Public Hearing — North River Commerce Center (NRCC) EIP 2nd Amendment (1:08:07–1:22:02)
• Staff: Winston Brooks — Administrative EIP amendment; original EIP (2022) enabled ~$9.4M in public infrastructure (road alignment, Riverwalk easement/utilities); ~400k SF Class‑A space built; one building fully occupied; logistics sector downturn requires flexibility. (1:08:39–1:10:41)
• Amendments proposed:
– Extend construction completion deadline from 12/31/2026 → 12/31/2031 (20‑year TIF term unchanged).
– Add second performance metric: $100M capital investment (in addition to 800k SF).
– Broaden allowable commercial uses (with restrictions: no hotels, retail, gas stations, vape shops); any non‑listed uses return to IDB. (1:10:46–1:12:13)
• Developer: Matt Phillips (Rise Partners) — Since 2022: $50M invested in Class‑A industrial; $9.4M in public infrastructure (signalized access to soccer complex, Access Rd and utilities upgrades); Building 100 fully occupied; tenant mix includes retention, new‑to‑Chattanooga, and new‑to‑USA (PELCO); jobs ahead of plan. (1:15:16–1:19:06)
– Scope broadening needed to capture manufacturing/lab users currently excluded by narrow “distribution only” definition. (1:19:42–1:21:34)
• Public Comment: Helen Burns Sharp — supports amendment; called it a “normal TIF.” (1:22:11–1:22:31)
• Action: Public hearing closed; amendment approved and forwarded to City Council & County Commission. (1:21:50–1:22:53)
8. High Growth High Jobs Grant — Master Machine (1:23:08–1:24:55)
• Clerical correction to agreement definition: update required wage from $58,639 → $72,330 (matches Exhibit A & staff report). New agreement to be signed by Chair; no new board action required beyond acknowledgement.
9. Bridge COVID‑19 Revolving Loan Funds (1:24:55–1:26:43)
• Action: Authorized Chair/Vice Chair to request return of repaid Bridge COVID‑19 RLF from SETDD to IDB Fund NR14; approx. $358,000. (Related: separate $588,000 CNE transfer already completed Aug 15, 2025.)
10. Southern Champion Tray — PILOT Termination (1:26:50–1:28:10)
• Action: Approved conveyance/transfer of real & personal property back to company and termination of related lease & PILOT agreements at end of term (assets move off IDB roll; return to full taxation).
11. E2I2 Project Easements (1:28:10–1:29:02)
• Action: Ratified Vice Chair’s execution of sanitary sewer & temporary construction easements with VTR Shallowford LLC for 7127 Lee Hwy (E2 project).
12. Other Business (1:29:08–1:30:25)
• Chamber Site Selector LED Analysis: Final invoice $60,000 (under approved $70,000 match); $10,000 remains with IDB.
• Finance note: See Item 5 for Fund 14 and transfers.
13. Board Announcements (1:30:25–1:31:16)
• Welcome: New member Brent (District 9).
• Reminder: Oct 20, 2025 Application Review Committee (Northgate TIF) — IDB reps Nadia & James.
14. Adjournment (1:31:16)
• Meeting adjourned at 12:29 PM.
