August 3, 2026 Chattanooga Industrial Development Board Meeting
August 3, 2026 Chattanooga Industrial Development Board Meeting
The Chattanooga Industrial Development Board (IDB) convened on August 3, 2026, at 11:00 a.m. with seven members present (quorum confirmed). The meeting covered routine approvals, quarterly progress reports on major infrastructure projects, a detailed review of the city's pilot incentive program, a presentation on a proposed registered apprenticeship incentive for employers, and a contentious discussion regarding a notice of default on the Ben TIFF development agreement.
Consent Calendar
- Minutes Approval: The board unanimously approved the record of the canceled June 1, 2026 meeting and the minutes of the special-called meeting on July 8, 2026.
- Change Order No. 2 for Class A Power Project: Approved a change order increasing the contract with Archer Western Construction LLC by $616,257.91 for additional geotechnical investigation, sampling, and design contingency, bringing the revised amount to $15,184,580.29. The motion passed unanimously.
- Equipment Pre‑Purchase for Class A Power Project: Approved a guaranteed maximum price of $20,695,801.05 with Archer Western for early procurement of blower and IFAS equipment to meet long lead times and a short construction window. The motion passed unanimously.
Public Comments & Testimony
- Philip Bernie, Training Director, Iron Workers Local 704: Expressed strong support for registered apprenticeship programs and described the challenges faced by local apprentices, including lack of transportation to jobsites. He stated that major projects (Erlanger Park, Embassy Suites, Chattanooga Football Club) were awarded to contractors who did not partner with local registered apprenticeship programs, and urged the board to prioritize local workforce partnerships.
- Kenny Smith, IBW Electrical Apprenticeship Program: Endorsed Mr. Bernie’s comments and emphasized the importance of registered apprenticeships over general apprenticeships. He noted that 700 applicants applied for 160 slots in the last year and urged the board to involve local apprenticeship programs in city projects.
- Bill Horton, Attorney for Urban Story Ventures (Ben TIFF project): During the open comment period on the Ben TIFF discussion, he argued that the change in equity ownership did not constitute a change in control per the development agreement, and requested the board consent to the equity change rather than issue a default notice. He stated all requested documents had been provided.
- Katie Kampassi, City Council District 2: Commended the board for detailed scrutiny of the Ben TIFF project and the proposed amphitheater. She raised concerns about lack of public information on the project’s design, job creation, and union involvement, echoing questions previously raised regarding the Jailhouse Studios project.
Discussion Items
- E2I2 Quarterly Update (Wastewater Project): Mark Heinzer, wastewater administrator, reported the E2I2 consent‑decree program is on schedule and on budget.
- Class A Power Quarterly Update: Mark Heinzer presented the project status and explained the rationale for the two consent‑calendar resolutions (geotechnical study and equipment pre‑purchase). Board members asked clarifying questions about foundation depth and budget integration.
- Annual Pilot Report: Sharita Allen, Senior Advisor for Economic & Workforce Development, presented a comprehensive review of expired and active payment‑in‑lieu‑of‑taxes (PILOT) agreements. Three pilots expired in 2025: MM Industries (cumulative $29M wages, $1.2M property tax), OP Mobility ($173M payroll, $4M property tax), and Unum parking garage ($5M incentive, opening 12+ acres for development). Active pilots include Coca‑Cola, Gestamp, Steam Logistics, Volkswagen (over $2B payroll in 10 years), YF Young Feng, and recently approved projects. The board discussed clawback provisions for companies failing to meet contractual commitments. A detailed one‑page performance snapshot for each active pilot will be provided annually.
- Registered Apprenticeship Incentive for Employers: Dr. Andrew Hudson, Director of Workforce Development Strategy, presented the “One Chattanooga Works” system and proposed a $50,000 employer incentive to adopt or expand U.S. Department of Labor registered apprenticeships. The incentive pays $25,000 upon hiring four registered apprentices within four quarters and $25,000 upon graduation of the fourth apprentice. Dr. Hudson reported Hamilton County has approximately 1,500 registered apprentices (highest per capita in Tennessee). The incentive will be funded through workforce innovation funds and philanthropic contributions. Board members asked about eligibility for both union‑based and merit‑based programs. A formal vote is expected at the next IDB meeting.
- Ben TIFF Project – Notice of Default: The board discussed a letter from Urban Story Ventures (James K. White III) regarding a change in control of the project entity. After debate, a motion was made to instruct the board’s attorneys to issue a notice of default under Section 21 of the development agreement, citing the change in equity ownership and a mortgage recorded by Hillco Global. The motion passed 6‑1. The default notice triggers a 60‑day cure period, during which the developer can provide information to demonstrate no change in control occurred or seek board consent. Public comment followed from attorney Bill Horton and City Councilmember Katie Kampassi.
Key Outcomes
- Minutes of June 1 (canceled) and July 8, 2026 meetings approved (unanimous).
- Change order No. 2 for Class A Power project approved (unanimous).
- Equipment pre‑purchase for Class A Power project approved (unanimous).
- Notice of default issued for Ben TIFF development agreement (motion passed 6‑1). The developer has 60 days to cure or provide satisfactory evidence of compliance.
- Registered apprenticeship incentive discussed; vote scheduled for September 14, 2026 meeting.
- Next IDB meeting set for September 14, 2026 (not Labor Day).
Meeting Transcript
Everyone for I have some allergy stuff going on, so my voice is a little worse. But want to welcome you to the August IDB meeting. We'll call the meeting to order now. It's 11 o'clock. We have confirmation that the meeting was advertised. We do have a quorum present with seven members. We'll move into the approval of our minutes. First of all, we need to approve the record of the meeting that was canceled June 1st. And so that was recorded. Can I get in a um motion to approve that? So move. Second. Second. All those in favor? All right. Thank you. And then we did hold um a special call meeting July 8th of 2026. Those meetings and transcripts are in your documents. Can I get a motion to approve those minutes? All those in favor? So now we'll recognize anybody wishing to address the board at this time. Is there anybody here? Morning. Morning. Morning. My name is Philip Bernie, and I'm with the Iron Workers of Local International here in Chattanooga. And I'd like to thank you for the opportunity to address the body with thoughts pertaining to workforce development and investment in our community. Again, like I said, my name is Philip Bernie. I'm with the local, I'm the training director for the registered apprenticeship that we run. For over 80 years, the iron workers have trained local men and women with sustainable careers in the construction industry. Each construction trade offers their own program, facilities, and training necessary to provide a highly performed uh highly skilled trade for men and women. Each of our programs are registered with the United States Department of Labor, and we follow all state and federal apprenticeship standards. In preparation for my comments, I want to provide clarity on a couple of points I thought pertained to the registered apprenticeship program. Our program, our program is entirely self-funded. We see we receive no grants from state or federal entities. Just an important, we are recruiting and training locally. Uh we incorporate apprentices from Chattanooga and the surrounding areas, including youth, uh young people from around the uh under uh underserved communities. Uh for many of them, an apprenticeship is more than just a job, it's an opportunity to learn a craft, earn a living, and build a sustainable future for themselves and their families. Historically, registered apprenticeships has not only helped them but created opportunities for family members uh in the future. Uh I think about one of our apprentices. Uh his name was Jamani Thomas, and then in particular, who lived at College Hills Court. He wanted to better his future and work harder for it. Um there was times that he would actually walk to our apprenticeship program, and it was about five miles from where he's lived at. He would walk to school. Uh when projects like the Chattanooga Football Club building, Erlanger Park, and embassy suites were being built, he could have practically walked to those jobs to go to work. This young man had to quit because he didn't have no way to get transportation to jobs. And he told our former business manager that he just wanted to get to where he could own get a living to cut his own grass. That you know, I thought to myself, man, you know, he wants to cut his own grass, and most of us think that's a chore. So he's one of the guys that comes to mind about all this stuff coming up around around the area. But those jobs, unfortunately, were awarded to contractors, did not prioritize community or value the partnership with the registered apprenticeship programs.
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