The city of Chattanooga has signed a new contract with Friends of the Zoo after terms of an outstanding loan were worked out.
The non-profit group that supports the Chattanooga Zoo at Warner Park owes the city $1.7 million.
Dan Johnson, chief of staff to Mayor Ron Littlefield, said the zoo group will make payments of $150,000 per year on the loan.
He said the group can earn $1 credit for each $2 it raises for capital projects at the zoo per year - up to $250,000 per year.
“FOZ is grateful to the city of Chattanooga for agreeing to these terms and for assisting us in the mission we have had for the past 25 years: completing the Zoo,” said Gary Chazen, board president of FOZ. “We were pleased that the city provided incentives that will allow us to complete our mission, repay the city and build financial stability for one of the city’s most important assets.”
For the past 25 years, FOZ has served as an active partner to the city, most recently investing close to $9.8 million into facility improvements. Over time, zoo employees have shifted from being paid by the city to being paid by FOZ. The city now has three employees at the Zoo while FOZ employs 37.
“With the city matching FOZ for capital improvements, it is more important, now more than ever, to give to the Zoo,” said Mr. Chazen. “We want to make it possible for the Chattanooga Zoo to continue to be known as the ‘Best Little Zoo in America’."