How RiverCity Has Benefited Chattanooga - And Response

  • Friday, April 17, 2015

There is the old adage to never let the facts stand in the way of a “good” story. In this case, accurate facts make a great story for our community. 

There was utter surprise recently on the part of a local naysayer to learn that RiverCity is not independent of the city and county.  

Of course it is not independent of the city and county.  It was created to be the primary economic development engine specifically for the benefit of the city and county.  And it has done exactly that for almost 30 years.  

This same naysayer acts as if the local PILOT program is owned by and benefits the RiverCity Company.  It is not and does not.  The PILOT program was created separately by the City Council and County Commission, and RiverCity assists in administering the program. RiverCity receives nothing in return other than the strengthening of downtown.   

Since 1986, RiverCity has been the lead agent, primary catalyst and/or primary source of funding and coordination for:  the Tennessee RiverPark, the Tennessee Aquarium and Plaza, Coolidge Park, Majestic 12 Theater, Tivoli Theater renovation and Riverset Apartments. 

Additionally, RiverCity created and was involved in the first 20 years of operation of Nightfall and worked in partnership with former Mayor Bob Corker on the 21st Century Waterfront Trust. 

There have been numerous partners and donors over the last 30 years.  But the one constant since 1986 has been the partnership with the city and county, through involvement with three county mayors, five city mayors and City Council and County Commission members who have served on RiverCity’s board.  

The relationship has never been for financial gain.  RiverCity has remained funded by the private sector, and receives no annual budgetary support from the City and County.   

Let me be crystal clear: no city or county elected official receives any financial benefit from RiverCity.  They also receive no financial benefit in administering the downtown PILOT program.  The results of the PILOT program over the last 20 years are self-evident, and the recent spate of activity shows that the program continues to work. 

While RiverCity is not the sole cause of the revitalization of our downtown, our city would be a very different place if RiverCity had not invested in our downtown.  

The growth of Chattanooga should never be stagnant, and that’s one lesson that Chattanooga learned between 1950 and 1980.   

While it is easy to stand up and be critical, it is often harder to stand up and offer constructive solutions to challenging issues. That is where our energies should be directed. 

Kim White

President and CEO RiverCity Company 

* * *

Ms. Kim White, 

You are frightening we the people with your reference to RiverCity Company as an economic leader, yikes. 

Let’s make this crystal clear, the taxpayers of Chattanooga will never forget that RiverCity Company was charged with project management of the riverfront.  Most professional project managers call for concrete inspection and slump tests, apparently RiverCity Company did not and they were contracted for project oversight, including quality assurance and control of the river front work product. 

It is interesting that you would proclaim this project as a success.  This taxpayers fail to see success when they are spending millions to rebuild the RiverCity Company’s concrete debacle. 

RiverCity Company was contracted for project management by the city of Chattanooga for the riverfront construction that is currently being rebuilt due to pervasive concrete defects. In fact, the city of Chattanooga filed a lawsuit against RiverCity Company for inept management of the project, and only missed the mark due to timeliness of the lawsuit filing. 

As one of the citizens still paying the tab for that debacle,  we are allowed to object to your rhetoric. 

Then, who could forget the Majestic Theatre PILOT debacle.  TVA donated the building to the city of Chattanooga, who turned the site over to RiverCity Company. RiverCity Company issued a PILOT to their own project to increase the bottom line profit. 

I fail to see the public benefit in popcorn jobs generated at the Majestic Theatre, yet we pay for their share of public services. You have the nerve to call down citizen taxpayers who object to PILOT abuse? 

Do share how the tax exemptions issued to Majestic Theater benefited the public. 

While the RiverCity Company’s board is heavy with elected officials, these elected representatives need to explain the need for your organization to receive public assistance from city taxpayers.  If an organization has a CEO making a quarter of million annually with a small staff, why should we the people subsidize grossly inflated salaries. 

It is uplifting that the city of Chattanooga government cut RiverCity Company out of the budget last year. That is the good news for the public and is promising.  At the same time, who could ever forget a decade of the public being mandated to subsidize your organization.    

It’s all fun with other people’s tax dollars, and having a board riddled with elected officials can be profitable for RiverCity Company.  

If RiverCity Company can afford quarter of million dollar salaries for managers of less than 10 people, this organization does not need public welfare from city of Chattanooga government, now or in the future.  

Since RiverCity Company issues PILOTs to their own projects, it is highly inappropriate for our elected officials to be on the RiverCity Company board due to pervasive conflicts of interest.   If that is naysayer, we will wear that badge of honor. 

RiverCity Company’s political meddling has no bounds. 

April Eidson

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