County Mayor Weston Wamp said he and other local officials are in talks on what will be the state's largest Tax Increment Financing (TIF) plan. He said the project may be in public discussion in some weeks.
The county mayor said the 470-acre TIF for the Wheland/U.S. Pipe site, where a Southside Stadium is planned, is currently the state's largest TIF. He said the one he was referring to would be bigger.
Officials earlier indicated that a sizable TIF district is being envisioned for the Westside stretching to the Tennessee River at the major development known as The Bend.
A recent resolution of the Chattanooga Housing Authority indicated that the city of Chattanooga may be the applicant for the TIF for the section where CHA has several housing developments and the area across Riverfront Parkway now known as The Bend (formerly Alstom/Combustion).
The TIF would be "in support of the Westside Evolves development plan and redevelopment of adjacent and related areas that would include the CHA's existing properties in the area of Riverfront Parkway and MLK Boulevard near downtown Chattanooga and adjacent properties expected to be developed by private developers or the CHA that will enhance the development of the CHA's properties, together with the property located at The Bend development between Riverfront Parkway and the Tennessee River."
A TIF allows local governments to invest in public infrastructure and other improvements up-front.
Local governments can then pay later for those investments from designated tax proceeds.
The TIF discussion came up when Commissioner Joe Graham presented the idea for setting up a special savings fund to pay for building and maintenance needs at the county schools.
He is asking the commission to vote next week to approve the fund and also have 100 percent of future TIF and PILOT (payment in lieu of taxes) funds go into the savings account.
County School Supt. Justin Robertson balked at the idea, saying the county schools especially count on the proceeds of PILOTs for school operations. He said when large new industries arrive it often creates a new burden on the school, and the PILOT funds are designed to cover that.
Hamilton County is one of the few counties that includes with each PILOT a requirement that the "school tax" not be waived. Volkswagen currently pays some $3 million in annual school taxes.
Supt. Robertson said, "I had no heads up about this resolution. I don't know of a single school board member who knew about it."
County Mayor Wamp also expressed reservations about the idea. He said his office and the county schools have set up a working group that is dealing with such issues.
Commissioner Greg Beck noted that this issue had come up before. Commissioner Graham said around 2010 he presented the same plan and it passed. He said it was later rescinded by the commission.
He maintained that if it had stayed in place that the county schools would have been able to provide for many of its buildings needs on a cash basis.
County Mayor Wamp said he wants to take a closer look at TIFs and PILOTs, saying in some cases there may not be an actual need for one but a project could be feasible on its own.