Layout of The Bend
Some members of the City Council expressed concerns on Tuesday about Tax Increment Financing (TIF) for the huge project planned at The Bend.
The council plans to continue the discussion during a special session next Tuesday.
Officials of Urban Story Ventures said they are "permit ready" to start to develop Phase 1 of the 120-acre Alstom site and bring up to $2.3 billion in economic development. However, they need the TIF to help pay for $198 million in infrastructure.
Councilman Isiah Hester said he had "some reservations," stating he sees a trend in restaurants often moving and going out of business.
Jermaine Freeman, the mayor's chief of staff, said the project is "an opportunity to build our city for the future, to create many new jobs, and to transform our riverfront."
Several council members expressed concerns about the Westside Evolves project, which is not in the footprint of the TIF but which is due to receive proceeds from it through an interlocal agreement. Also, not in the footprint but which is also to receive proceeds is the planned vocational school at the Gateway Building on W. 9th Street. Some proceeds are also to go to build a new fire station in that section.
Chairwoman Raquetta Dotley said the tearing down of the Westside public housing and replacing it with new housing and mixed use "was originally sold as being 1 for 1" - with current residents being able to stay as the project is built out.
She said she was also concerned that the planned Gateway school might become a magnet school and nearby residents not be able to attend. School Supt. Justin Robertson said it would be the county's third vocational school and not a magnet school.
Councilman Darrin Ledford noted that without the TIF that "none of this happens." He referred to the Westside Evolves plan and the downtown vocational school. Betsy McCright of the Chattanooga Housing Authority agreed that there would be no chance for a $50 million Choice Neighborhood grant for the project without the TIF income. She said, "The TIF is really critical."
Councilman Chip Henderson said other developers are complaining to him that they don't get help with their infrastructure. Mr. Freeman said other developers are not offering to build a $2 billion-plus project.
Councilman Henderson questioned the need for the TIF incentive, saying, "We're talking about the riverfront - prime property." He said the developers had already been successful with early development of the site.
Mr. Freeman said the cap on the TIF was 20 years and $115 million.
Vice Chairwoman Jenny Hill said when the Westside public housing complex was built "it was intentionally a segregated neighborhood." She said, "We created apartheid with that."
She said, "I have little to no desire to build an exclusive neighborhood for a privileged few." She said the reworked Westside "should not be for the corporate conglomerate that we are going to bring here," but for those "who pour your beer and check out your groceries."
Councilwoman Marvene Noel said she questioned the surveys used by the CHA to determine who wanted to stay on and who opted to take vouchers and live elsewhere.
She said, "It was going to be 1 for 1. I'm not hearing that now. This just has Jim Crow sprinkled all over it. It seems to have everyone moving out instead of staying and finding a better place to live."
Councilwoman Demetrus Coonrod, who grew up on the Westside, said she wondered what would happen to women she knew as Miss Dorothy and Miss Alice, who had long been mainstays there.
She said some Westside residents pay rent as low as $25 or $50 a month and would have a hard time making it elsewhere.
Mr. Freeman is asking that the City Council take a vote to approve moving forward with an economic impact study on the project and later vote to okay the TIF.
A similar presentation was to be made to the County Commission on Wednesday.