Chattanooga Tea Party leader Mark West on Wednesday told County Commission members they would be guilty of "crony capitalism" if they continue to approve tax breaks for major developers.
He noted that the Chattanooga Choo Choo would soon have a case before the commission asking for 10 years of tax abatement (on improvements) and four years of steps toward full taxation on a project to convert hotel rooms into 97 apartments.
Mr. West said those involved had strong ties to the Rivercity Company, that is handling the housing PILOTs (payment in lieu of taxes).
He said Choo Choo officials include former mayor Jon Kinsey, Ken Hays and Ben Probasco. He said Mr. Kinsey was formerly a Rivercity board member and Mr. Hays was the former president. He said Mr. Probasco was formerly involved with the Gordon Biersch firm, and he said one of its officials was on the Rivercity board.
He said the Choo Choo partners "have their tentacles all over the Rivercity Company."
Mr. West said Commissioner Joe Graham is on the Rivercity Board and has a conflict of interest that should prevent him from voting. But he said Commissioner Graham said in an email that he was going to support the tax break.
Commissioner Graham said the Choo Choo is in his district and he has met with Mr. Kinsey, but he said he keeps an open mind until it is time to vote.
Mr. West said the tax breaks are going to "the big guys rather than the struggling little guys."
He said he had heard talk of a moratorium on the housing PILOTS, and he said it should take place before the Choo Choo vote.
Commissioner Greg Beck, who has been considering a call for a housing PILOT moratorium, said he plans to convene a meeting on the tax abatement issue.