Industrial Development Board Meeting - April 20, 2026: TIF Underwriter Engagement, Northgate Mall Sales Tax Agreement, and Small Business Grant
Industrial Development Board Meeting - April 20, 2026
The Industrial Development Board (IDB) of Chattanooga convened on April 20, 2026, at approximately 9:00 AM. The meeting included approval of previous minutes, public comments, financial reports, and three major resolutions: engagement of an underwriter for the North River Access Road Tax Increment Financing (TIF), approval of an intergovernmental sales tax agreement for the Northgate Mall TIF, and a small business incentive grant. All resolutions passed unanimously.
Consent Calendar
- Approval of Minutes: The board unanimously approved the minutes from the March 2, 2026 IDB meeting via motion and second, with no opposition.
Public Comments & Testimony
- Helen Byrne Sharp, representing Accountability for Taxpayer Money, addressed the board. She requested that staff or the applicant provide a plain English explanation for the North River Access Road TIF amendment, noting the TIF has returned to the board multiple times. Regarding the Northgate Mall TIF, she asked why the sales tax collection boundary was limited to the area around BJs and restaurants along 153 (where sales taxes are currently collected) rather than the entire TIF boundary, and wondered about the rationale given potential future development of vacant properties.
Finance Reports
- Ellen Leo (C of Chattanooga) presented the BW Progress Report, noting no changes since last presentation: 99.0% of contingency spent, with two remaining MOUs (one with ~$215,000 unspent, one with $5 million untouched). The Economic Development Program Summary showed $4.07 million in cash available for seven active programs. The TIF report indicated no payments received yet this fiscal year (receipts expected annually around this month). The Wastewater Program Summary showed over $100 million spent since July 2023, fully reimbursed by the city, leaving a cash balance of $0. Board members asked no questions.
Discussion Items
Resolution 1: North River Access Road TIF – Underwriter Engagement
- Presentation: Sherita Allen (Senior Advisor for Economic and Workforce Development) presented a resolution to engage Stifel, Nicholas and Company Incorporated as underwriters for bonds related to the North River Commerce Center Industrial Park TIF. The developer had previously amended the economic impact plan to allow broader uses, necessitating restructuring of financing. A memo from legal counsel (Mark Mamantoff, Bass, Berry & Sims, April 14, 2026) stated the engagement is preliminary and non-binding; compensation only payable if closing occurs.
- Discussion: Members asked whether the board had done similar refinancing before (staff indicated it was a first due to the changed TIF structure). Clarification was provided that the developer is responsible for hiring Stifel, but the board must approve the engagement because public monies are involved. The resolution passed unanimously with no opposition.
Resolution 2: Northgate Mall TIF – Intergovernmental Sales Tax Agreement
- Presentation: Sherita Allen explained that this resolution approves an intergovernmental financial assistance agreement between the city and IDB for sales tax revenues to supplement property tax increments for the Northgate Mall redevelopment. The sales tax area is limited to a “crescent” of existing businesses that are fully operational and predictable, rather than the entire TIF district where construction phasing would make revenues uncertain. The agreement was originally overlooked when the development agreement was approved; it does not impose new commitments on the board.
- Discussion: A member asked why the agreement was brought after city council approval (staff clarified it was approved concurrently but the IDB piece was missed). Another member asked about caps or limits on the sales tax contribution (staff explained a baseline of existing sales taxes is maintained; only incremental revenue above that is captured). A member expressed concern that the TIF might not generate enough incremental property tax revenue without the sales tax supplement; staff confirmed that because the mall is a declining asset, property taxes have been decreasing, so sales tax is needed to reach the projected $8.7 million in infrastructure costs. Staff noted similar sales tax supplements are used in other TIFs (e.g., stadium, band). The resolution authorizes the board chair to sign the agreement, which also requires the mayor’s signature. Passed unanimously.
Small Business Incentive Grant – Calibu Paper Products
- Presentation: Winston Brooks (Director of Economic Development, Entrepreneurship) introduced Calibu Investments LLC, doing business as Calibu Paper Products. Owner Hirend Desai described starting the business in March 2025, now with 6–7 employees. The company produces paper products (toilet tissue, kitchen towels, napkins) for hospitality and hopes to expand into janitorial supply, potentially adding 15+ employees. The $9,174 grant—from a municipal grant program administered by the IDB—will be used for marketing to janitorial suppliers. Desai noted that incentives in North Georgia are more generous but he chose Chattanooga out of personal commitment. A board member (self-described in the paper converting industry) commended the business and moved approval. Passed unanimously.
Correction/Clarification on North River Access Road TIF Resolution
- Clarification: Matt Phillips (Rise Partners, developer) corrected earlier statements about the underwriter relationship. The IDB, not the developer, is the bond issuer and must engage the underwriter. The engagement letter is to be signed by the board chair. The underwriter’s fee is limited to 2.5% of the bond par amount, paid from the bond proceeds. The board will need to return to approve the final bond package before closing. Members confirmed that the $8.75 million in public infrastructure costs are certified and that the notes will be refinanced through the bond issuance.
Key Outcomes
- Approval of Minutes: Unanimously approved.
- Resolution 1 (North River Access Road TIF – Underwriter Engagement): Passed unanimously (voice vote, no opposition). The board chair is authorized to sign the engagement letter with Stifel, Nicholas and Company.
- Resolution 2 (Northgate Mall TIF – Sales Tax Agreement): Passed unanimously. The board chair authorized to sign the intergovernmental financial assistance agreement.
- Small Business Incentive Grant (Calibu Paper Products): Awarded $9,174 unanimously.
- Next Steps: For the North River TIF, Stifel will market the revenue stream and prepare a bond proposal to be brought back to the board for final approval. For Northgate Mall, the sales tax agreement formalizes revenue collection for infrastructure reimbursement. The board adjourned after all business.
Meeting Transcript
For the month of April, I will go ahead and call this meeting to order. We do have quorum present, and the meeting was advertised at this time. We will move into the approval of the minutes of the March 2nd IDB meeting. And so I'll entertain a motion for approval of those minutes. I'll make a motion to approve. It's moved and seconded. All those in favor? Any opposed. Thank you. The meetings are approved. At this time, we'll recognize any person wishing to address the board this morning. Anyone here wishing to address the board? Ms. Sharp. Good morning, board. My name is Helen Byrne Sharp, representing accountability for taxpayer money. You're the first to see my my new look. It's not gonna last, I don't think. I went to four bridges yesterday thinking it was gonna get artwork and ended up with a poncho. And then I got home and had to Google ponchos like what are they? What do you do with them? But anyway, I'm hoping today I won't be invisible, right? Okay. I don't have anything terribly profound to say, just a couple of requests of staff or the applicant when it gets to these on the agenda. Uh the North River Access Road TIFF, I've always thought it was probably the most normal of all our TIFFs, but I've noticed that a couple of times it's come back to you. And rarely do TIFFs once you've approved them come back to you. And I'm sure there are good reasons, but I uh would like for staff or the applicant to kind of to address, and I I think in the agenda it kind of explains it, but to those of us who are kind of generalists that don't understand all the intricacies of financing, just a plain English explanation of what this is about, and also maybe a reminder, they've come back before for things that I'm sure were legitimate, but maybe they could could mention those too. Uh the Northgate Mall TIF. Uh I noticed in the um the boundary for the sales tax collection that it it could have been the entire boundary of the TIFF, but instead it's basically uh BJs and those restaurants along 153, the places where today sales taxes are being collected, and I understand that. I just wondered what was the thinking. Some of I would hope over this 20-year period this is in effect that some of the vacant properties there this redevelops into a town center might become uh businesses that would generate sales taxes. And I mean, I'm not you know, I think we need sales tax revenue as well as property tax revenue, so I'm not trying to necessarily make it bigger, but I just wondered if somebody could address why the decision to restrict it to that particular portion of the TIFF boundary. That's it. Thank you. Thank you, Ms. Is there anyone else wishing to address the board this morning? Okay, we um Miss Lou up next with uh BW finance reports. Good morning, members of the board. I'm Ellen Leo with C of Chattanooga. Uh the first report I'm gonna present is the BW Progress Report. Uh since the last presentation, there's no change on it. Uh if we take a look at the report, the first page, the percentage spent in Cumber and the contingency was still at 99.0%. Overall, there are still two MOU that will have residual amount not spent yet. The second MOU is uh we'll left over 215,000, not yet spent. And then third MOU, uh, there's five million dollars. Actually, I have not spent any of that yet. Okay, uh the next report. Let's look take a look at the economic development program summary page. For that one, um the cash amount that we can spend on this board right now is about four point four point zero seven million dollars. Uh there's those are the seven programs that uh economic development have running right now.
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