Industrial Development Board (IDB) Monthly Meeting - July 8, 2026
Industrial Development Board (IDB) Monthly Meeting - July 8, 2026
The IDB met on July 8, 2026, with a quorum of six members. The meeting covered the election of a vice chair, approval of previous minutes, quarterly financial reports, ratification of an option extension for Volkswagen, and a detailed discussion on the Bend development's right-of-first-refusal memorandum and a change-of-control issue. The board also received an update on the Northgate TIF project.
Consent Calendar
- Approval of Minutes: The minutes from the May 4, 2026 meeting were approved unanimously.
Public Comments & Testimony
- Board Member Comment on Erlinger Park: A board member read a letter from Ray Boswell noting that the new Erlinger Park, which the IDB helped finance, does not offer recycling. The member expressed hope that the Lookouts would address this oversight to keep Chattanooga scenic.
Discussion Items
- Quarterly Reports (Eleanor Lou): Lou presented the VW funding progress report (no activity; $215,000 remaining on the second MOU and $5 million unspent on the third), the economic development program summary ($7.4 million cash on hand across seven programs), and TIF reports (year-to-date and project-to-date revenue and disbursements). The wastewater program summary showed $122 million spent, all reimbursed by the city. Sharita Allen noted that an annual PILOT/TIF report will be presented in August.
- Resolution – VW Option Extension: The board ratified the chair's execution of an option extension agreement for Volkswagen property. The option, originally expiring June 30, 2026, was extended to January 15, 2027, allowing VW to decide on additional acreage for expansion. The resolution was approved unanimously.
- Resolution – Bend Development Right of First Refusal Memorandum: Representatives from Urban Story Ventures (Jimmy White) presented the memorandum to record the IDB's right of first refusal on Bend properties. Key legal issues discussed:
- Guarantee documents: Legal counsel Mark Mametoff reported that a subordination clause had been removed, and a clean signed version would be provided shortly.
- Change of control: White acquired additional ownership interests (now ~90.5%) in Bend Infrastructure LLC, triggering a request for board consent. White argued control never changed due to veto rights (requiring 85% member approval), but Mametoff noted no operating agreement exists for that entity, making the change-of-control determination ambiguous. A formal letter requesting approval was submitted July 7, 2026, referencing a new entity (For James LLC) that was not in original documents, causing confusion. After debate, the board tabled the change-of-control issue to the next meeting for further clarification. Separately, the board approved the right-of-first-refusal memorandum itself (vote: all in favor).
- Future Bend Development: White mentioned plans for a $300 million amphitheater, marina, and retail district, but could not share details due to NDAs. Mametoff noted that any additional incentives would likely require state legislative changes, which could not occur until 2027.
- Northgate Project Update: Sharita Allen provided an update from the developer (CBL). One community engagement session was held (June 14), with two more scheduled (July 15 and TBD). Preliminary design, field surveys, and coordination with utilities are underway. The developer has outlined 10 next steps, including final design and contractor pricing.
Key Outcomes
- Vice Chair Election: Gordon was elected vice chair (motion and second, unanimous).
- VW Option Extension Resolution: Approved unanimously.
- Bend Right-of-First-Refusal Memorandum: Approved unanimously; the chair/vice chair authorized to execute it.
- Change-of-Control Request: Tabled until the next IDB meeting to allow attorneys to clarify documents and ownership structures.
Meeting Transcript
I think we are all gathered and have a quorum, so we'll go ahead and call the July meeting of the IDB to order. The meeting was advertised, and we do have a quorum present with six members. And so we will begin with the chair position and open the floor for nominations. And remind us, Alfie, if you don't who is it currently? I will nominate Gordon. There's a motion and a second for Gordon. I will tell Gordon that he has been um elected as our vice chair. Okay. All those in favor? Any opposed. So thank you very much. That is that is true. Okay. Our next item of business is uh the approval of our minutes from our May 4th meeting. We have those in our packets. Um I will accept an entertainment motion for approval of the minutes. Okay. Thank you. All those in favor? Okay. Thank you. Our minutes are approved. Um, our next item is we want to recognize anyone wishing to address the board at this time. Is there anybody wishing to address the board? Madam Chairwoman may make a comment here. I hand it out to some of you and to read uh a letter to the editor from a guy named Ray Boswell, where he discussed that our new Erlinger Park that we've had such an instrumental role in as far as the financing. And I think what he's identified uh is just an oversight. Obviously, Rich Munzingo, if I'm saying that correct, and Mr. Fryer have had plenty on their plates. But if Mr. Boswell is correct here, and I think he is because I've been there as well. Um, I think it's just an oversight that they don't offer at least to our citizens in the scenic city, and we count sustainability, they don't even offer recycling. So I'm certainly pointing that out here in a public forum, hoping that that message will get passed along, and hopefully, uh, as I think they will, the lookouts will uh help out our scenic city stay scenic. So thank you for indulging me there. We're bringing this to our attention. Next, we will have a presentation of the quarterly reports by Eleanor Lou of VW funding progress summary and economic development program summary. Good morning. Um, I'm a little new with City of Chattanooga. Um presented reports. The first one is the VW progress report. Uh actually, there's no activity, and I have not been reporting any activity on this report since April of last year. Uh so far we still have uh 215,000 dollars left on the second MOU to be spent. And for the third and third MOU, there's five million dollars total, have not spent yet. So we couldn't wait until that somehow gets spent. Uh the next report is the economic development program summary. That one shows that from all the seven programs we have. Uh we have about seven four million dollars cash on hand to be spent for those programs. Uh the next report is the TIFF. I included two TIPs reporting this this time. The first one is the year to date.
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