Black Creek Group Appeals Judge's Decision To Toss Out $9 Million TIF

Friday, August 15, 2014

Developers of a planned major development on Aetna Mountain have filed an appeal of a judge's decision tossing out $9 million in Tax Increment Financing (TIF) to build a road and sewer line up to the project.

MBSC Black Creek, LLC, and IDB Investor, LLC filed notice they wanted to appeal to the Tennessee Court of Appeals the ruling of Chancellor Frank Brown.

The city of Chattanooga and the City Industrial Development Board have not yet taken any action on an appeal. That issue was set to be taken up at a meeting of the IDB this morning.

The IDB is also being asked to reconfirm the earlier TIF that the judge said was null and void due to a Sunshine Law violation and a conflict of interest on a letter from an attorney saying it was a valid project for TIF help.  

The development group bought the TIF bonds and has already spent almost $1 million, including $242,000 in lawyer fees.

Four City Council members have asked the IDB to return the matter to the City Council and County Commission for further study.

Here is the agenda for today's meeting:

1. Call meeting to order.
2. PUBLIC HEARING
3. Consideration of legal decisions and advice of counsel pertaining to the Tax Increment Financing at Black Creek Mountain (the “TIF”), including, but not limited to, reviewing materials related to the TIF.
4. Decision as to whether to appeal the court case involving litigation in the matter of Helen Burns Sharp v. Industrial Development Board, et al.
5. Decision as to whether to reconsider the TIF as a project as referenced under T.C.A. § 7-53-101(13).
6. Decision as to whether to ratify the actions of the Board to approve this TIF as a project in a previous meeting.
7. Adjourn. 


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