Good morning, everyone, and happy new year.

Thank you all for being here for our January Industrial Development Board meeting.

We'll go ahead and call the meeting to order.

Um, we have confirmation of the meeting being advertised, and we have a quorum present.

And so we'll start by um minute approvals for our December 1st meeting.

Is there um motion to approve the minutes?

All those in favor?

Thank you.

The meeting minutes are passed.

At this point, we'll recognize any um anybody wishing to address the board this morning.

Anyone here wanting to address the board at this time.

Okay, Miss Lou, we will have the quarterly finance report.

Good morning.

Happy New Year.

Um I'm Elon Leo with the City of Chattanooga Finance Department.

Uh the reports I'll present.

The longest one is the VW grant, and actually, there's no in no activity at all since the last report.

Uh the following three reports.

The first one is the economic and development program summary.

In that particular report, uh, the only changes, the make two major changes is the uh Southeast Tennessee Development District returns $358,000 from the bridge loan we gave out during the pandemic.

That one would need to receive, and also uh city appropriated 1.3 million dollars to the renewing Chattanooga fund.

So in total on hand available to spend by this board is $3.8 million.

Okay, the next report is the TIFF.

Uh the only major change in there is that we collected $8,000 for the uh Northgate Mall application.

Again, uh the available cash to spend for all the TIFF funds is about 153 156,000 dollars.

The last report is the wastewater program summary.

Of the two programs we have, uh we have about 1.3 million dollars spent in December that we have not received the full reimbursement, but we'll get that taken care of in this month.

Any questions I can consider.

Any questions for Ms.

Liu?

I don't have any.

Okay, thank you very much.

Next, we will have a quarterly project update for the number two Bio Wastewater Department and Jacobs Engineering Group Incorporated.

W20-027-101 MMBC MMEC class Power A Progressive Design Build.

Good morning, my name is Mark Heinzer.

I'm the administrator for the wastewater department.

Uh and uh yeah, we submitted a uh quarterly report for our Class A power project.

And again, that project is is funneling through the industrial development board.

It is a kind of a regional impact here with what we're doing capacity-wise with our wastewater treatment facility.

And uh progress is is going as expected.

We have our basis of design report that is due on January 30th.

So in a little bit less than a month, we'll have the basis of design report and kick off into uh the full 60, 30 to 60 percent design phases and the uh 60 percent design phase uh will be complete in August, which is where we'll get our uh cost estimate for the construction.

And then from there, since it's a design build project, uh construction can begin after that point.

So it is tracking pretty well on those dates.

Right now, we had hoped to get the basis of design report completed in uh December, but that uh that got pushed one month for us.

So but otherwise the project is moving along as expected.

Any questions?

Okay, thank you.

Thank you.

Our first resolution is for the Northgate Mall TIFF project.

A resolution of the Industrial Development Board of the City of Chattanooga approving and acknowledging an amendment to the economic impact plan for the Northgate Mall Infrastructure Project Project as recommended by the City of Chattanooga, Tennessee.

Good morning, board Sharita Allen, senior advisor for economic development and workforce development here at the city.

So this item is a follow-up to the very last item that this board approved.

It's related to the third-party review of the proposed Northgate Mall TIFF, actually approved Northgate Mall TIFF.

There was a recommendation in it from the third party reviewer that basically said the range for the TIFF was anywhere between 7.7 and 8.7.

The original application reflected a request for 9.2.

And so this board, as a result of reviewing that third-party review, recommended that that 9.2 amount be reduced to 8.7.

And so that was approved and moved forward to city council for approval and vote.

City Council amended the document and approved it.

And this is recon this item is recognizing for the IDB to recognize that City Council accepted the recommendation, amended the document, and approved it.

And so it's basically a clerical acknowledgement that the IDB is approving this.

And so we do have in the packet a memo from our outside uh TIFF council that was sent to staff.

Um I will read that for the general public to see.

And it basically it's to Shari Dall and Winston Brooks, it's from attorney Mark Mamentov.

It's dated December 23rd of 2025.

The subject is approval of economic impact plan amendment for Northgate Mall redevelopment.

And it states, as you're aware, the City Council of the City of Chattanooga approved the economic impact plan for Northgate Mall redevelopment that was previously approved by the Industrial Development Board.

When the City Council approved that plan, City Council amended the plan to reduce the amount of tax increment revenues that may be allocated pursuant to the plan to $8.7 million plus interest from $9.2 million plus interest.

This reduction was based on recommendation of a third-party review of the butt for tests related to the transaction.

Pursuant to the applicable state law, the industrial development board must also approve the amendment.

However, the board is not required to hold another public hearing as to the amendment.

The proposed resolution for the board would approve this amendment.

Any questions before you vote?

Madam Chair, if I may.

Uh Jarita, um, I was a little found it interesting.

The recently in the Chattanoogan.com, Mr.

Wilson reported about two properties selling over there for a combined 37 million just in the last few days.

And I I was a little I just thought it was interesting in the context of all that we're doing here from the standpoint of this resolution that's in front of us.

This isn't even finalized, and there's already multi-millions of dollars of property being sold right next door, essentially to Northgate Mall.

Is that something we as a board should be concerned about?

I would say no to that.

And so the issue, what what typically happens is this is um this is an incentive for the improvement of the infrastructure to encourage future development.

What happens is once that infrastructure is in place, and the discussion of having this infrastructure in place has led to more conversations around other retailers wanting to come into the property.

So I'm not surprised that properties are starting to change hands because we've spent the last eight months having discussions about building a better Northgate Mall, building a better Hickson infrastructure.

So I'm not surprised that we're starting to see transactions happen at all.

Okay.

All right.

Thank you.

Is there any uh I guess uh concern for this body here that the council has actually got another resolution on the agenda for tomorrow?

And so um attorney knoblett is referring to an item that is coming up before city council tomorrow.

It is a resolution that has been drafted by uh city council member Jeff Davis, uh Council District 3.

This falls within this district.

It is going to be a recommendation that the IDB consider what the public would like to see built on the site after the infrastructure goes into place, and that the IDB encourage the developer to hold public hearings or actually public engagement, community engagement sessions to discuss the items that that the public would like to see as as a result of future development, but not necessarily related to the infrastructure.

So what will happen is city council will review that resolution that's on their agenda currently on the website.

They will vote on that.

That recommendation will then come to the IDB.

Chances are that will come to you in February.

And then we will take those recommendations, incorporate them into a draft development agreement.

And when we bring the draft development agreement to this board, we will have attempted to incor incorporate some of those requests as far as it's related to a paragraph around the developer should conduct public engagement to review the community desires around certain items.

And that'll have to await a public hearing tomorrow in front of the council before that is approved or not here.

And uh the resolution just has a caption of urging the IDB to do certain things here.

So we'll have to see what happens and what what is actually approved.

If the results if I may, Madam Chair.

If the resolution was to be approved, do we, the IDB still have leverage to alter the documents to incorporate the language?

Uh sense from what you're saying, we do, but I just want to confirm typically what happens is when a development agreement, when an agreement comes to the to the board for approval, all of those items have already been worked through.

So is there anything at this point based on how if this resolution were to pass tomorrow, we can alter there are always opportunities to amend a document when it comes before the board for vote, yes.

Or would we be able to return it to the city council and make recommendations?

Is that basically what they're sending us?

I'm going to ask our TIFF council to weigh in on this one.

But we won't see the document until February.

No.

Right.

No.

Assuming the city council resolution, sorry, Mar Mamantoff, Presbury and Tim's.

Um the resolution passes, we'll immediately start working on a development agreement, be sharing it obviously with Phil and with, and you will get a draft well ahead of time.

You'll have plenty of time to offer a comment.

What you're being asked to vote on today will not affect in any way what is going to come back for view all month from now.

As I told council, and I think I told you all the hard part is actually now going to start drafting a development agreement to implement somewhat of a as I call it inchoate concept of what this is going to look like.

I'm actually excited to get some guidance.

I'm sure you all probably are as well from City Council as to what they're looking for.

Um, and um, so we'll be working hard on a development agreement.

I hope it'll be ready for February.

This is going to be a hard one because there's a lot of moving parts in terms of it's unique in many ways, it's partially redevelopment, it's partially economic development, and so I'm looking forward to to working with them.

They've got good counsel.

Mark Smith's here if you want him to answer any questions, but we'll be bringing you that.

But I what you're asked to do today is truly clerical.

They it's in everybody's best interest that they lowered the maximum amount, so you're actually protecting the public fiscal by the two to five hundred thousand dollars by approving what's in front of you today.

But once this resolution hopefully is passed by city council, I'm sure Shreet will share it with you guys and we'll we'll dive into drafting a development agreement for you all's consideration.

But yes, you'll have ample time to either say, look, it's not ready, bring it back to me in March or do whatever, but we'll be we'll be getting to work on it.

Okay.

Can I just have a question on the process?

Because I know that the city council had to vote in the first place.

Yes.

And then it comes to it came to us.

Yes.

On the development agreement, are you saying that we see it first?

City Council sees it.

Okay, we see it first.

Do we vote on it?

The city doesn't vote on the development agreement.

As I've seen the draft of the resolution, they're not asking for a vote on it.

They're providing input for you all that they would like you all to consider as you vote on it.

Um, and so um that's this is gonna be an important role for you all to play in reviewing this agreement and seeing if it meets you could always ask the city council, city staff for further input as you consider it, but there that the vote on the development agreement is yours as you are the other party to it with the developer, not the city.

Okay.

Thanks for the clarification.

Thank you, Mark.

Any other questions on this resolution?

Okay.

I'll entertain a motion.

Motion to approve.

Second.

All those in favor?

Aye.

Any opposed?

Thanks.

The resolution passes.

Our next resolution is for the North River Access Road TIFF project.

A resolution of the board of directors of the industrial development board of the city of Chattanooga authorizing the execution of certain documents to amend the development agreement and tax increment financing documents related to the North River Commerce Center Industrial Park.

Terrific.

Council, again, we have uh another memo that was sent to us from our legal council at Passberry and Sins.

It's addressed to Shrey Dallas and Winston Brooks from Mark Mammentoff attorney.

It's dated December 26, 2025.

And it's regarding the approval of the amendment approval of amendment documents for access road development.

As you're aware, the City Council of the City Chattanooga and the County Commission of Hamilton County recently approved an amendment to the economic impact plan for the access road development.

Among other things, this amendment extended the period for commencing allocations of tax increment revenues from the plan area and broaden the permitted scope of the development.

In order to implement the provisions of this amendment to the economic impact plan, corresponding amendments to the development agreement for the development are required.

In connection with these amendments, Access Road LLC as a developer and the lender for the tax increment financing would also agree to restructure the tax increment financing that has been previously issued in order to align the debt service payments on the tax increment financing with the actual tax increment revenues that are being realized from the project portion of the project that has been completed and to reflect the additional time that is being given to the developer to complete the project.

This resolution submitted to the industrial development board for consideration would approve execution of an amendment to the development agreement and the execution of the amending documents related to the tax increment financing in order in order to effectuate these changes.

So again, this is a successful project.

Two buildings have already been built.

The developer came to the table asking for a change of use in order to build different type of development on those two remaining parcels.

The public infrastructure, the public benefit as far as roads signaling, lighting, all of that has been completed, all of that has been successful.

And so again, we're asking for these things that are that are outlined that have been amended in to the attached agreement.

Any questions.

I think what was presented before was there was a requirement that four buildings be built that were all industrial warehouse buildings or industrial uh buildings.

And so two of those buildings have been built.

The market changed, the developer came back and asked for the ability to build other things.

Um we did put into those sort of that expand expansion of what could be developed.

There's some restrictions on no hospitality, there's no retail, um, there's some limited some uses that we limited, but other than that, it it allows for office, it allows for medical, it allows for some non-industrial that can be built on that site.

Okay.

And as a result, they're willing to delay their payments back.

Is that what I'm they want longer time?

I'm I'm sorry, I'm just trying to there's a there's actually the the TIFF is not a the TIFF term is not extended.

They the term for development is extended.

So what happens is typically in the development agreements, they are time certain.

You have to have build something by a certain date.

By changing this use, the the allowable development types, product types.

What we're saying is we're also allowing you a longer time to build these new things.

Okay.

The principal amounts of the TIFF notes remain the same, though, correct?

Correct.

Okay.

And obviously, from the administration standpoint, you wouldn't be here otherwise.

You're you guys are uh okay with this change.

We we are, and so we have spoken with the Chattanooga Chamber of Commerce, which helps recruit companies in.

So again, I think this was pouring out of a particular company that wanted to build and and was looking to build an office building on that particular space, but because the use was so restricted to the industrial piece, they were not the developer would not be able to entertain that kind of interest in the property.

So again, we opened that up.

Any other questions on this one?

Well, entertain a motion.

I make a motion we approve the resolution.

Second.

All those in favor?

Great, great.

Resolution passes.

Thank you.

Our next resolution is um for wild flower development.

Good morning.

My name is Hanukkah Henderson.

I'm the director of housing finance for the city, and I haven't had the pleasure to be in front of this board before, but there's been a new state law that has created a housing tool that means I'm hopefully will be coming forward in the future to create industrial development districts.

Now to give a quick primer on what these are, industrial development districts are a financing tool authorized under Tennessee law that allow developers to use long-term tax-exempt bond financing to pay for public infrastructure that supports new housing without imposing costs on the city.

So where this differs from a TIFF is instead of paying off the bonds by future tax revenue, there is a special assessment, so an extra tax on the district that those homeowners or business owners are paying to pay off the bonds.

Now the advantage of this is 30-year tax exem bond financing is a lot cheaper than commit conventional debt for building roads and sewer.

And so the overall purchase price of the home is lowered, even though homeowners have a higher kind of annual tax bill.

So it's a housing tool that's been used in Texas and Florida quite extensively to build new housing.

And it's one that Tennessee made possible in the real estate infrastructure act of 2025, which was a modification of the earlier real residential infrastructure development act of 2024.

So it's an exciting tool, it's a new tool, and we're not coming forward today with a project proposal.

But what we are coming forward with is uh this intent to reimburse resolution.

And I have a memo prepared by our legal counsel that I'm gonna read out for the record.

Uh it's to Hanukka van Dersen from Mark Manantoff, dated December 23rd, 2025, titled uh reimbursement resolution regarding wildflower development.

As we have discussed, the city of Chattanooga has been contacted regarding the proposed use of special assessment financing to assist with the cost of public infrastructure for the wildflower development located off Goodwin Road in the city at the former Cygna location.

The potential financing is at a preliminary stage.

Before such financing can be undertaken, the city would need to receive a petition to impose special assessments with respect to the development, and city council would need to agree to impose such special assessments.

As you are aware, the city council is asked to be briefed on special assessment financing at a meeting in January.

If City Council receives an appropriate petition, which is expected, and chooses to impose such special assessments, the industrial development board could undertake a special assessment financing secured by those assessments.

Because the developer for the wildflower development has already commenced work on the public infrastructure and is prepared to dedicate a portion of that infrastructure to the city.

The developer's representative asks the industrial development board to adopt a resolution known as an intent to reimburse resolution that meets the requirements of federal tax law and essentially states that if special assessment financing is issued, the industrial development board expects to reimburse the developer for public infrastructure costs that have been incurred.

The adoption of this resolution in no way commits the city to approve the imposition of the special assessments or commits the industrial development board to issue special assessments debts.

This resolution just preserves options for the city in negotiations moving forward.

As bond council for the city, we've been asked to draft the proposed resolution which accompanies the memorandum.

Please let us know if you have any questions.

So really what this resolution is doing is it's putting a stake in the ground for federal tax law purposes so that if we choose to move forward with this project, which again we've had one meeting about, we are in early, early stages.

We are able to reimburse the developer for the infrastructure that's being built right now, and we can lower the home prices on those houses that are currently being constructed.

So it in no way commits us to moving forward with this development, but should we choose to move forward and take it through council?

It would allow the current phase to be included in that district and provide greater public benefit as a result of this district.

Do you have any questions?

I had so many questions.

How is the special assessment calculated?

The special assessment is calculated.

It's based on the volume of the bonds issued.

So uh it's basically what would be need to be paid off, or what would need to be paid on an annual basis to pay off the size of the debt.

So there's no way for the potential homeowner to know how much higher their absolutely there's a way for them to know.

So there are disclosure requirements, and so no one would be purchasing a house without being aware of what that assessment is.

Okay.

Yeah.

How much is this obligating us to?

Like what are we talking about?

Yeah, I know it depends on the development size, but like even just a max, like what would be the max that we're committing ourselves potentially to.

Yeah, so we are obligating ourselves to nothing with this resolution.

It is simply that if we choose to move forward, we have an option to include the first phase in the development.

So the amount, the volume would be completely contingent on future negotiations moving forward.

It's also important to recognize that the city and the industrial development board are in no way obligated by the debt.

It is fully secured by that special assessment.

Looks like the resolution states 10 million maximum principle.

So yeah, we do not pay for the infrastructure.

I guess if if I may, my my concern is why are we, if this is I mean, it sounds somewhat speculative, and why are we saying we expect to reimburse as opposed to we may reimburse or we will consider reimbursement?

Because I'm bothered by the legality of saying uh a developer relying on us expecting to reimburse, and then if we don't come through where that leaves us, um and then like Ms.

Shikari is saying, we don't even have a cap on it.

Um and then what I hear you saying as well is that if some of the the work is already started.

And so I don't even hear I'm guessing I'm going back to the butt for test.

If it's already started and being implemented, why why do we need to jump on now?

Sure, yeah.

So this uh intent of reimburse is in the resolution conditioned upon issuance.

So that's our kind of that's uh what all this is hung on.

If we do not issue the special assessment, they have absolutely no claim under this.

This does not commit us in any way.

The reason why we would want to jump on board with something that's already underway is because we have the potential to negotiate public benefit into that phase.

So by using the tax exempt debt to pay for the infrastructure instead of conventional financing, the purchase price of the homes can be lowered.

And so even those homes that are already being built right now, we can bring to market at a more affordable price.

Now, if we were not to take that phase with us, we could still in the later phases do that, but there's an opportunity to expand the kind of public benefit from going through this this process.

And so that's why we're interested in preserving the option in the future to do it, but right now it does not commit us to anything.

And who is the developer on this project?

It's quite fairly.

Yeah, that was my yeah.

So wildflower wildflower development.

I mean, that's just a private enterprise residential developer.

Okay.

So we're where Signal used to be there's being there's homes being built on that property, is that right?

By wildflower development.

Let me see.

Is this the road?

Is this the behind the development?

I just reindeer elementary.

The name of the development is wildflower development.

It's being taken by EAH.

That's correct, thank you.

You say that again, Tim, if you would if you turn to that second to last page of our thing, it's got the name of the development is wildflower development.

EAH undertaken by EAH acquisitions LLC.

That's a map.

It's the way I read it, but that's correct.

Okay, thank you.

So do you know who who's behind the EAA EAH acquisitions, LLC?

We've had a preliminary meeting with the development team, but as I mentioned, this is in very early stages of negotiation.

It's because of the timing of the development that we're coming forward now.

As I said, city council would have to approve this.

There would need to be a petition file.

There's a whole process to actually do this.

What this resolution before you today is really about is giving us the opportunity to include this first phase in that tax exam status of the debt for federal uh tax purposes.

Since this is a new tool, I guess I have a question.

So a special assessment would be included.

Where would that, where does that portion of the funds go?

Yeah, so the special assessment is used to pay off the bond.

And so it comes in on the property tax bill.

It's it's uh junior to property taxes, but senior to mortgage debt.

Uh and that is what pays off the bonds.

So in the way that a TIFF is paid off with future tax revenue, these special assessment districts are not committing the city's future tax revenue.

Instead, the owners of parcels in this district are paying an extra tax or assessment in order to pay off the bonds that were used to finance their development.

So, in a way, it's uh a tool to allow growth to pay for itself because it's the new residents that are paying for the infrastructure in their neighborhood.

So is that so and then we're kicking in extra for the infrastructure, is what you're saying.

We do not pay for it.

The IDB doesn't.

We just said this is what the agrees to resolution.

The assessment, so the extra tax the homeowners pay are what pays for the infrastructure.

They pay off the are they just passing through the IDB?

Like, why are we considering it in the first place?

Does it come into an account for us that we set aside and then it just pays off because we issue the debt?

Right?

Yeah, I think we're just being asked to vote on whether or not we want to have an intent intent to I know reimburse, but really what we're approving is maximum debt of 10 million dollars, right?

Um the federal legal council.

I think the reimbursement.

Yeah, I thought Ms.

Toggers asked a really good question.

That expect to reimburse that's sort of magic language that the federal tax code requires to that's what they look for.

The fourth or fifth paragraph is what I wrote that says despite what we said in the other paragraph, we don't mean that we're gonna do anything.

So they filed the plat to dedicate the first portion, I think about 45 days ago.

And if they and they just realized that this tool is available, the guy that contacted me and reached out for me, it's a guy named Phil Hunt.

He's like the guru in Florida and Texas for doing special, and he's really working the state, letting developers know this tool is out here.

We're meeting with city council, I believe, Sharita, next week, the 13th, to provide them an overview of these of special assessments.

And if you all want to be really bored, we could set aside some time at your February meeting to go through sort of what you're all's role is in these things.

Of course, it is non-recourse, it's much like a conduit bond issue, but there are unique things about this special.

It is most closely analogous to a TIFF, because basically, as you all asked, it's basically an allocation of revenues that the city collects to you all that you would use to pay off the debt.

And the city can actually do it itself.

But we recommend as bond counsel to the city and to you all that it is better to isolate this debt from the city because if there's ever a default on it, you don't want the the IDB, people understand it's a conduit while with the city itself.

If the city of Chattanooga defaults on special assessment debt because of non-payment, then it looks like a blemish on the city.

So that's why you use for both TIFFs and and these sort of things thing we don't typically do, but this is all relatively new in Tennessee, but generally a but for analysis is not done for the this is not an incentive.

In other words, we're not giving them any public funds at all.

Um, usually you extract things from the developer.

It's look, if you if we agree to cooperate with you on this special assessment, then you will do such and such.

And that's usually in a development agreement, much like a TIFF, but we're not giving them any public funds.

We're just cooperating them with this collection of this special assessment.

So again, it's a very complicated process.

This came up really quickly.

Uh and by the way, if you hate my memos, I'll stop.

I just thought I don't know.

I I thought maybe these one pagers might help you all understand sort of what what's on there for.

But this came up very quickly.

The 60-day time period they have for leaving their options open is gonna expire if you want to adopt this today, and this is just again to preserve options, and I would say this will be a three or four month process while the city considers whether they want to be involved and whether things but I would just echo what Hanukkah says.

This can help promote housing.

The question is is it is the what is it, the juice worth the squeeze or whatever it is.

You understand in terms of because there's work.

There's you you're lucky you have very competent staff on the housing side here in Chattanooga.

Um, and um and your finance team is really strong.

Um, and so maybe you this will make sense.

And I do think a lot of cities and counties, but uh I think I was telling them Franklin is probably the first spot in Tennessee that is really seeing this as you might guess because there's such an expensive place to do business.

I think they've had six workshops of their city council on these uh special assessments, trying to understand them better.

I promise you you won't need that, but I mean it is it it is a complicated issue.

But uh today we're just trying to check the box on a tax issue, and hopefully uh, if you all are comfortable with it, it does not bind you to think that but it's worded that way to sort of be the magic language.

I'm sorry, I would have liked to say what you said, but then it wouldn't really technically qualify with the uh with the code.

So Mr.

Mammintal, one one other thing about this.

This is a new law, correct?

Because it just came in in 2024 and most recently amended in 2025, so it was not available for y'all to be able to able to consider.

I'm smirking because we wrote the law in 2024, uh, one of my partners in Nashville.

And so we basically did it, and then it got all hashed up by the legislature and what got passed got thing.

And the developers realized wow, this is a great deal.

Sorry, Matt, I'm not insulting developers, but uh thing, but they like, man, this could workily be good.

And uh they said, oh, but those Bassbury and SIM guys, they put in restraints in there that we don't like.

So they went and basically took our law, changed a few like three provisions and readopted it as if it was a new law.

And so the first law was called RIDA Residential Infrastructure Development Act, and this new one is called Re-IDA, Real Estate Infrastructure Development Act.

And so everyone will go under REIDA, the new law, but it's basically the law we adopted with a few like the we had a constraint that there had to be five million dollars in investment, the developers get rid of that, you know.

So it is saying so.

That's what we're gonna be going over with City Council, sort of that Riata law, and Phil's absolutely right.

That's why you haven't seen these, but you're growing very quickly.

I would expect you'll see this.

This is a cool development on a site that, as I understand, needed to be a sort of redevelopment again and sort of thing.

And so uh and I this is a tough tax issue.

I I think this will work for them, but I just found out about this, as I said, right before Christmas, as did Hanukkah.

So we're sort of coming in here asking for your blessing to sort of keep this project going while we sort of figure things out.

And it requires action by the council before it would come back to this body at all.

Yeah, the interesting again, I'm sorry if I tell you what you want to they would file a petition.

Council has to vote on it per state law per the developers think within 30 days.

They can't delay it, they can't think either they have to go back to the developer said we're gonna vote this down if you don't cooperate with us, which is what we'll be talking with council on.

And uh but they it's a mandatory 30-day vote once they initiate a petition, whether to do the assessment or not.

Interesting.

Well, let's say when every property owner has to agree to uh uh join in the petition.

So if they've sold, go back to one of your questions if they've sold any lots already, every lot owner has to join in to the petition to agree to be assessed.

Sorry.

I was gonna say, first of all, I appreciate your memos.

Uh yeah, please at least I say please keep them coming.

And and thank you to you and Hanukkah for your uh patience here today, because uh it's at least new to me.

Yeah, uh, Mr.

Knoblett to his credit, I think about six months a year ago did make us aware of this law in connection with a different issue.

So thank you, Phil.

Um, I would ask maybe our our chairwoman to maybe at some point in the next few months, maybe have a short version of uh uh of a presentation about what exactly this law means and our role in it.

I think that would be helpful.

But yeah, I mean, I personally don't know anything about this, and so yeah, I definitely would benefit from just some more education on this type of thing, especially if you feel it's gonna come up more often.

And then um just clarifying exactly what I'm not sure I fully understand what this resolution does today, and if if it holds up anything in the future, can you just they they filed a plat, I think about 45 days ago for the first phase of development.

If you look at the thing, it's basically quadrants of development and the first quadrant they they've platted and they've recorded a plat, which results in the dedication of the infrastructure to the city of Chattanooga.

And so once it's been dedicated, they basically you know can say, wait a minute here.

Um the IRS is gonna say, sort of going back to Jimmy's question, is like, well, well, you know, you never counted on this.

And so they have been talking behind the scenes, but they didn't understand really what they've been doing.

I've been getting feelers about this project through the grapevine for several months, but they didn't have Phil involved, this this consultant, they didn't know what to ask for.

So when they got him involved, and they said, Oh, we're about to record this first phase to preserve our options.

Could we ask the IDB to adopt what's called this intent to reimburse resolution debt so that if we're ever successful in issuing special assessment debt, we would preserve the ability to get paid back from it from that special assessment debt for what we're about what we dedicated about 45 days ago.

Because otherwise they're gonna have to keep that financing, and this is what Hanukkah was getting tied up what probably with a high cost bank loan, which will delay them and being able to proceed with additional phases of development in this project, which is what everyone wants to see.

And so this would allow them essentially to free up financing from the first phase if we're able to do this successfully and move on to the next phase.

Is that accurate?

So more housing affordability, which is our targeted public benefit for this project.

Yeah, and if we don't, if this doesn't pass today, what is what are the impacts?

In that case, we cannot include this phase as infrastructure in the special assessment district, and so we lose out on the kind of benefit to the project which we use to negotiate additional affordability into the project from that phase.

So it just the benefit gets smaller.

So the the houses won't be as affordable as your home correctly.

And affordable in relation to what is there a certain dollar mount that that you guys are going after, is it?

Yeah, so all of that still needs to be negotiated.

We've had that one meeting and um spoke to the developers that we would like to see affordability as the public benefit if we are to consider this moving forward, but we have not yet talked about specific prices.

That's all gonna come in the three to four month negotiation.

But you lose that leverage if it doesn't lose the leverage, yes.

This to me just sounds like a shell game, if I understand that you're basically asking the homeowners of this new development to pay for their own infrastructure over the next 30 years on a separate tax line item annually.

Is that correct?

And hopefully, in hoping that the developer will lower his purchase price or selling price of the home.

Is that correct?

Almost.

Uh what I would say is yes, the homeowner is paying for the infrastructure over a 30-year term.

Uh otherwise they would be paying for the infrastructure in their purchase price in that higher purchase price.

And so this is part of the negotiation we would want to see.

We would not be going through this process if we did not see lower purchase prices on the other end.

But that is something that the next few months will come forward.

What we do know is that uh by using tax exempt to pay for the infrastructure, the cost of the development to the developer is lowered, and so we have room to push for those lower purchase prices, and it does benefit the homeowners if we're able to do that.

Yeah, I mean, this essentially allows the developer to add tax exempt financing to their capital stack, right?

Which decreases their cost, which decreases purchase price.

Correct.

Which personally, I think these are the types of tools we need to use all throughout the city and the county because that's why we don't have affordable housing here, right?

We don't use the tools that are available to us historically.

Madam Chairwoman.

Madam Chairman, I make a motion we approve this resolution, given what Mr.

Mammoth Mametov has said as far as the um and and Hanukkah, excuse me.

I didn't I won't go into your last name, Van Derson.

Yeah, you got it.

Um, what they've said as far as the this not committing us down the road, it's simply allowing some leverage or flexibility going forward for the next few months.

And in the meantime, we can see how those discussions go.

We can see what the city council does.

Hopefully, we can get a uh presentation of some kind ourselves to educate ourselves, and then we can make a decision at that point.

Do we want to approve it or not, from what I'm hearing?

So I make the motion we approve the resolution.

Second.

All those in favor of the of the resolution that that we have today.

Uh any opposed the resolution passes.

I do request um an education um before this board in the next couple of months, just so that we can better understand this whole um process.

Absolutely.

All right.

At this point, um, we'll hear any other business or discussion items.

I know we have one request.

Um, I'll turn it over to you, Melanie.

Sure.

Um, I had a couple of things that came up over the last month that I just wanted to make the board aware of because it has to do with like our performance and transparency.

Um we've had some questions about staffing and and how we feel about that.

I was contacted by two individuals in Chattanooga who haven't been very happy with the way that we've been running things in part because the presentations aren't available to the public and they can't access them, so unless they have a FOIA request, they can't see the the PowerPoint presentations we had none today, but so they can see our agendas, but there's really important information in those PowerPoint presentations, and I don't think we're releasing those in a way that's accessible to folks, and it's not people who oppose or support a project, it's mostly I think um other property owners that want to know how a project might impact them, but they can't get the information other than sitting and listening and they can't read the presentation because I guess the way the cameras are angled and where the presentation is on the um screen makes it hard.

So I did help them get access to it, but I think it shouldn't be something that an individual person needs to contact a board member for.

I think we need to make sure all of our agendas are online, all of our presentations are posted after the um after the the because I don't believe we get all of them ahead of time.

So it might be that after the meeting we make sure to post presentations from outside entities so that business leaders, people in the community can see what's presented to us because it's public information anyway.

So when someone's watching the meeting, the presentation isn't um I think it's in a little box on the side, but sometimes the person standing here will block that, and so they can't see it, or it might be in really small, it might be just very small on the screen somewhere.

I've watched it before, and I've also noticed that it's it's just not very clear what it doesn't become like what they see.

No, okay.

No, they just get a view of like the entire that person speaking in front of the board.

Um the second one actually had to do with a vote that we made in November.

Um, and I I need to get I have not, I don't believe the email that I was planning to send to staff got to them yet, so that's my fault.

I found it in my drafts over the holidays while I was cleaning my email.

But we approved of a contract, and there were questions about whether or not an RFP was put out, whether or not we assess what what the assessment was, and it's for the software that we're using.

And this is um, I guess there are other businesses in Chattanooga that may have been interested in putting in a proposal or may have been interested in being the vendor, and we didn't get a chance to consider it.

And I think for us, it's just not having had software before and not having familiarity with what we should be looking for.

And so there were just there was a lot of um frustration with the process because I think we got it presented.

I think we've been talking about it in meetings, but then we got it presented in November, we passed it, and then there was a little bit of discussion, but then that was it.

And so just making sure that our processes are public, transparent, that there it that folks in the community do know when we are looking for contractors and things like that, because I believe there are some Chattanooga companies that would have been interested that work in the country, like work nationwide, but weren't considered for whatever reason, and I just want to make sure our board maybe steps up and makes sure that we're making this process available for everybody and and just being fair in how we how we do things.

Great.

Thank you.

Yes.

If I may follow up, I would also like to follow up what she said and make sure that the PowerPoint presentations are at least accessible to the public through our website for at least a year or so.

I mean, in this instance, we've got the the North R North River Commerce Center, and I think there might be some folks in the public would want to say go back and say, okay, what was that presentation?

Because it was very helpful, very good.

Um, and how does this what we were presented today maybe impact what what we saw before?

I think that's an example where it'd be good, maybe not to have it you know for five years or ten, but at least for a year or so so people can go back.

Um, and then the other thing that I was going to ask is of Ms.

Allen uh as far as uh if we're still gonna look at something on the February agenda for uh a possible IDB employee.

Yeah, I know that was discussed a few months ago.

And you know Miss Alan, can you tell us where that stands thank you?

So we are currently reviewing the staff staffing of all of the IDBs that are in similar sort of size of the city of Chattanooga and uh pulling all of that research together to present in February.

Okay.

So it's the IDB, it's their city economic development department.

If their department staffs the IDB, are they a department of 10 or are they a department of three?

Like what does that look like?

If they're an IDB, are they a department?

Do they have a staff of seven or do they have no staff and they're staffed by a city of three or city of ten?

So we're pulling all that research together for presentation.

Perfect.

I know you were on top, but follow up one question, just to follow up on your point.

For the software, just to clarify for the record, we're I assume, and you can confirm my assumption that all city procurement rules were followed.

They were, and we have a follow-up with the purchasing department because that particular vendor also reached out to our purchasing team.

And so just just so this board is aware.

Typically, the way the purchase of software happens in this day and age, we meet with the um IT team or information technology sort of folks.

They ask us what we're looking for, and then they take it from us and they do research, and then they come back to us with recommended vendors.

It's not like we can say, this is what we want to use, figure out how to make it happen.

They sort of take it from us, and we're like, whoa, like, are they gonna bring us something we like or they're gonna bring us something we don't like?

Like, has this been properly vetted?

So we did go through the process, and we'll we're happy to present on that at the next meeting.

But in the meantime, I do have a call later with purchasing to go through, and I did reach out to that vendor this morning and have a conversation.

And so those original conversations happened via LinkedIn when the vendor reached out because they had seen an October agenda item that said the IDB had funded it, and so that's kind of how it all started.

So happy to follow up and close the loop on that when we when we meet again in February as well.

Okay.

And I did have that we were going to be talking about the staff member in February, so we'll be sure to do that.

In terms of the ability to see presentations when someone's watching, is that something we can easily shift through the folks running our IT?

Maybe just make the presentation.

Correct.

And then just so you know, the other the other piece that's part of the economic development software is to have a public facing interface so that when there are items that are related to economic development, instead of the general public having to figure out do I go to city council, do it, am I going to YouTube?

Am I going to the IDB page?

Where am I going?

They can go to the economic development page, click, the live screen will screen will be there, the agendas will be there, but the agendas with the attachments will also be there.

And so again, that's something we're working with IT because IT wants to control sort of what's put on the website and and who has access to that.

And so our future public interface will allow us to do some of those things.

Again, that was part of a particular platform that we're looking at.

Perfect.

Thank you.

Any other discussion items?

All right, well, we stand adjourned.

Thank you very much.

Thank you, board.