Chattanooga City Council Committee Meeting – November 3, 2026

The committee met on November 3, 2026, at 18:56 UTC to discuss an update on a proposed long-term vacant commercial properties ordinance, hear council members' questions, approve minutes, and review scheduling and property matters.

Discussion Items

• Staff provided the requested update on the ordinance, which is intended to protect public safety, neighborhood quality, and future redevelopment opportunities by addressing long-term vacant commercial properties in designated heavily impacted corridors. The case example was 5200 Brainerd Road, the former Wendy's, and staff said storefront incentives may help address that property.
• Staff summarized potential pros and cons of a vacancy tax or fee. Pros identified: encouraging owners to lease, sell, or renovate; discouraging prolonged vacancy; creating greater accountability; and generating revenue to support enforcement and neighborhood improvements. Potential cons: penalizing owners with legitimate reasons for vacancy, no guarantee a property will be redeveloped or occupied, possible administrative/enforcement costs, and a need to evaluate legal authority under Tennessee law.
• Staff is preparing a citywide cost analysis of vacant properties, including code enforcement, fire/police attention, and homelessness services, and has compiled resources from other cities and articles provided by Councilwoman Hill.
• City Attorney Phil answered council questions, saying a fee is likely more feasible than a tax and would need to be reasonably related to the costs of maintaining the program and benefiting the area. He cited Jackson, Tennessee's model: owners register vacant properties, indicate whether they are renovating, seeking a lease, or seeking a sale, and face a reassessed/increasing fee if no change occurs within a set period.
• One council member suggested allowing property owners to sell long-vacant buildings to the city for workforce or affordable housing, including downtown multifamily reuse. Staff said the fee approach is meant to be supportive, not punitive, and could connect owners with economic development resources and incentives.
• Another council member said a fee is a lesser alternative to condemnation, while staff noted the fee would not remove maintenance obligations and could support getting properties into better shape. Staff cited three empty restaurants on Brainerd Road and noted the Wendy's building sat idle for about five years and is now slated for demolition.
• A council member asked about a citywide vacant-property database; staff said the information can be accessed through Nicole Heyman and added to the committee folder.
• Council members discussed using fee revenue for a program similar to River City's scenic storefronts, possibly targeted to specific districts or corridors rather than citywide. Rossville Boulevard was mentioned as an area being reinvested where the policy might need careful application, and the IDB or HUB might help with grants.
• One council member asked about lots used as de facto junkyards with rotting cars and suggested folding that issue into the ordinance; another asked whether any administration program currently addresses vacant properties. Staff indicated support and referenced Nicole Heyman's work on a state strategy.
• A council member proposed a pilot program along the Brainerd/Midtown corridor for 18 months with reassessment; staff expressed interest in a boundary-based pilot.
• A council member noted that some vacancies stem from financing pro formas from low-interest-rate real estate deals and low carrying costs, and urged a robust program with meaningful grants and escalating fees. The member noted Jackson's fee starts around $400 for the first year and that New Mexico and California start higher.

Key Outcomes

• No ordinance was adopted. Staff will continue legal review, cost analysis, data compilation, and ordinance development, with a future update expected at the next Land Use, Zoning and Housing Committee meeting.
• Committee minutes were approved on a motion and stood as published.
• The chair announced a lunch-and-learn at the wastewater treatment center the following week, with updates on a Class A power project. The November 17 strategic planning meeting will likely be canceled if no agenda items are submitted; December strategic planning will include a discussion on homeless housing and possibly council building safety improvements.
• In response to a question about the old Sports Authority property, the city attorney said it was not yet fully wound down: the temporary use agreement with River City was extended, the structure is mostly demolished, a transfer could occur if River City pays the $200 purchase/repurchase price, and the annual temporary use agreement date would be provided. A council member noted that appointments are still needed for two open positions on the board associated with the matter, while the attorney advised leaving the current arrangement in place.
• The committee was reminded of the attorney-client session after recess and adjourned to the 3:30 meeting.