Chattanooga Industrial Development Board Meeting - November 3, 2025

The Industrial Development Board (IDB) of Chattanooga met on November 3, 2025, to consider several items, including a public hearing on a proposed economic impact plan for the Northgate Mall Infrastructure Project, termination of a PILOT agreement for River City Company, and the purchase of incentive management software. The board also paid tribute to longtime board member Ray Atkins, who recently passed away.

Consent Calendar

• Minutes Approval: The board approved the minutes from the October 6, 2025 meeting, with a correction changing the date referenced in the minutes from October 10 to October 6. Motion carried.

Public Comments & Testimony

• Kyle Nichols (Hixson resident): Expressed strong support for the Northgate Mall infrastructure project, noting that the area was once a community center and that the public-private partnership model, similar to other city projects, is a smart way to address long-standing issues. He argued that doing nothing is costlier.
• Public Hearing on Northgate Mall Infrastructure Project EIP:
  • Helen Byrne Sharp (Accountability for Taxpayer Money): Opposed the TIFF, raising concerns about diversion of future tax revenues from general city needs, the city's recently approved tax increase appearing tone-deaf to taxpayers, the county's opt-out leaving city taxpayers alone, lack of detailed economic projections, and the need for a special assessment district instead. She also noted that the consultant’s analysis did not assess whether the project needs or deserves public assistance.
  • Charles Wood (Chattanooga Chamber of Commerce): Supported the project, highlighting that the mall was annexed after development, so the city has collected taxes without owning the aging infrastructure. He described the project as a “defensive play” to prevent decline and an opportunity to rebuild a center of economic gravity in Hixson.
  • Janice Gooden (Caleb nonprofit, economic mobility task force): Expressed appreciation for the process but raised concerns about whether the boundary is broad enough to cover future development and whether benefits to the community are clear. She supported upgrades but wanted assurance the project aligns with the Hixson Red Bank plan.
  • Chris De Manorino (Stewart Heights resident): Supported the project, recalling Northgate’s past vibrancy and warning that inaction could lead to decline similar to Eastgate Mall. He thanked CBL and the city for the partnership.
  • Greg Taylor (President of Valley Brook, Wimbrook & Tuskegee Place HOA, Friends of Hixson, Hixson Aquinas Club): Expressed strong support, citing visible infrastructure problems like sinkholes and water outages. He stated that many Hixson residents want the area to regain its role as the heart of the community and that upgrades are essential.
  • David Queen (CPA and Hixson resident, Friends of Hixson): Supported the project, noting that Hixson annexed in the 1970s and residents have paid property taxes citywide while the private sewer system at the mall was neglected. He sees the partnership as a fair way to fix the problem.

Discussion Items

• Northgate Mall Infrastructure Project – Economic Impact Plan (EIP):
  • Sharita Allen (City Senior Advisor for Economic & Workforce Development): Presented the proposed TIFF, emphasizing it is developer-backed (not city-bonded), will replace aging private sewer/water/stormwater infrastructure, and aligns with adopted community plans. She noted the but-for analysis was required after a waiver was denied, and that $7.7M (present value) to $9.2M in increment over 20 years is within an acceptable range. No vertical construction is involved; the TIFF only covers infrastructure.
  • Mark Mamantov (TIFF attorney): Explained the legal structure of the EIP, noting a recent state law change allowing public infrastructure alone as a project. He described the but-for analysis as speculative due to the long timeline and multiple parcel sales, and stated the analysis showed a need for incentive within a range of $7.7M to $9.2M. He clarified that a separate sales-tax support (non-TIFF) will come later and is not before the board.
  • John Michelle (CBL Properties): Urged approval of the $9.2M amount as referenced in the EIP, arguing the but-for analysis is conservative and that a more realistic timeline reduces returns below the minimum threshold. He stressed that the infrastructure is critical to prevent job losses (400+ jobs) and enable mixed-use redevelopment, and that CBL bears upfront cost and risk.
  • Board Discussion: Members asked about county non-participation (Sharita Allen took responsibility for not briefing the county in time), the 20-year term (needed to capture increment from a small district), and the $89,000 potential budget loss identified by Ms. Sharp (the city finance department confirmed about $89,000 in incremental revenue from the Sears site would go to the developer instead of the city if TIFF is approved). The board also discussed the lack of job creation projections in the EIP; city attorney stated the plan discusses maintenance of about 400 existing jobs.
• Wastewater Department Quarterly Update: Item deferred to next meeting due to no presenter.
• River City Company PILOT Termination: A resolution to approve the transfer of property at 311 Broad Street back to River City Company upon expiration of the PILOT agreement. The property will return to the tax rolls. One board member abstained due to being a corporate director of River City Company.
• Purchase of CivicServe Software: A resolution authorizing $44,000 from IDB TIFF admin fees to purchase incentive management software. The software will automate application intake, compliance monitoring, financial management, and public reporting. It is an annual license (first year included) with up to 8% renewal increase. The fund currently has $167,000, with annual TIFF admin fees of about $30,000. The motion passed.
• Other Business:
  • County Auditor TIF Report: The county auditor submitted a report on existing TIFFs. Some recommendations for policy changes will be reviewed; the board agreed to follow up in February 2026 after conversations with the county and city.
  • Plastic Omnium Injury Claim: A spoliation letter from Morgan & Morgan regarding an injury at the Plastic Omnium plant (property under PILOT) was received. The board has forwarded the matter to Plastic Omnium, which is responsible for indemnification.
  • EPB Subcontractor Non-Payment: A claim for $104,800 from a subcontractor on the EPB operations center project (also under PILOT) was received. EPB attorneys are handling the matter; the board is protected under the PILOT agreement.

Key Outcomes

• Northgate Mall TIFF – EIP Approval: The board voted unanimously (with one abstention? no abstention noted) to approve the resolution approving the economic impact plan for the Northgate Mall Infrastructure Project and authorizing its submission to the City Council. The EIP states a maximum reimbursement of $9.2 million plus interest on debt over 20 years, with an estimated project cost of $8.6 million.
• PILOT Termination – River City Company: The board approved the resolution to convey and transfer the property at 311 Broad Street back to River City Company. (One member abstained.) The property will be subject to full property taxes thereafter.
• CivicServe Software Purchase: Approved with a motion and second; funds will come from the TIFF admin fee fund.
• Follow-up: The board will revisit the county TIF audit report in February 2026.