Helen Burns Sharp addresses city Industrial Bond Board
City officials are planning to get back into the TIF business and are expected to announce a new TIF project soon.
The last Tax Increment Financing project several years ago ended in a lawsuit filed by citizen activist Helen Burns Sharp, which she won. However, a city board issued a new TIF for developers of the top of Aetna Mountain to build a $9 million road and sewer project.
The city Industrial Development Board was briefed on the new TIF process at a meeting on Tuesday.
Under a TIF, a developer pays for certain infrastructure and is reimbursed through new tax revenue in a district centered around the project site.
The board was told its approval was not needed since the City Council had acted on the new TIF rules in July 2015.
Jermaine Freeman, a city economic development official, said at the November meeting the board would be "drilling down on an application coming our way."
However, Cherita Allen, deputy city economic development administrator, said nothing was scheduled.
James Miller, board chairman, said this time around the TIF process "will be very transparent." He said there would be "ongoing oversight" of approved TIFs. The board was also sued by Ms. Sharp for violating the Sunshine Law.
Ms. Allen said she expects that the city will get a number of TIF applications.
She said it was a new tool that other cities have been using and Chattanooga should take advantage of.
Ms. Allen said the city wanted to be "business friendly."
It would be possible for a developer to get both a TIF and a PILOT (payment in lieu of taxes), it was stated.
Jimmy Rodgers, board member, said the application process should have a section where companies disclose any past problems, including fines by regulatory agencies.
He said there should also be a "clawback" provision that would reimburse the city in the case of shoddy work. He referenced costly construction problems at the city's waterfront.
Ms. Sharp was at the session, and she said she is not a foe of TIFs. She said she was involved in four of them during 18 years as a community development director in Oregon.
However, she said there need to be strict standards to make sure they are a good deal for the city and not just for the developer.