Votes Set Soon On "New And Improved" Stadium Deal

City and county officials said votes will be held soon on "a final approved Southside Stadium deal."

Officials said, "Thanks to honest, face-to-face negotiations initiated and led by County Commission Chairman Jeff Eversole, the Chattanooga Lookouts have agreed to cover all stadium construction costs beyond $112 million of the estimated $120 million project.

"This agreement reduces the need for new debt by 20 percent (from $40 million to $32 million).

"The Lookouts’ additional 'skin in the game' will not be reimbursable by future TIF proceeds."

Presentations on this final deal will be made before the City Council and County Commission this week during regular meetings. Votes on this final deal will be held at their meetings next week. The Lookouts expect to break ground on the project soon thereafter, it was stated.

Chairman Eversole called it "a deal we can be proud of."

Rich Mozingo of the Lookouts said it "will guarantee that the Lookouts will remain in Chattanooga for a very, very long time."

He said the stadium will be a catalyst for "an unbelievable amount of development. It will bring new energy to the entire Southside."

Officials said, "Despite this concession, the Lookouts will still sign a 30-year lease payment of $1 million per year (the highest in Minor League Baseball history). Of the $112 million maximum cost to the City-County Sports Authority:

• $80 million will be financed by the Sports Authority bonds already approved in 2022

• $32 million will be loaned to the Sports Authority by Perimeter Properties (landowners) and the Lookouts (and will be subordinate to the $80 million of public financing)

• $3 million in cash will be contributed to construction by the Lookouts.

• Any additional stadium costs above $112 million will be the responsibility of Perimeter Properties and the Lookouts.

An afternoon press conference was held at centerfield of the stadium site at the Wheland Foundry/U.S. Pipe property.

Those speaking included Chattanooga Mayor Tim Kelly, County Commission Chairman Eversole (District 10), County Commissioner Joe Graham of District 11, Gary Chazen of Perimeter Properties and Mr. Mozingo.

Not on the invitee list was County Mayor Weston Wamp, who has led questioning of the arrangement.

Officials said with City Council approval, the city will fund $10 million toward public roads and Perimeter Properties or future developers will bear the cost of all remaining infrastructure (currently expected to be an additional $15 million). Perimeter will also donate nine acres of land for the stadium in addition to the 12 acres of land they have previously donated to extend the Tennessee Riverwalk (a total of 21 donated acres).

Good faith negotiations continue for a Community Benefits Agreement between CALEB, the Lookouts, and Perimeter, it was stated.

Chairman Eversole said, "As chairman of the County Commission, I felt a responsibility to leverage my career in business to lead an honest, face-to-face negotiation between local government and the private sector so that a better deal could be made for our community. This is a much better deal that proves yet again that ‘working together works.’ I’m proud to have brought reasonable folks together to solve a problem in a professional manner that resulted in a win-win for everybody. Most importantly for my district in Ooltewah – the fastest growing segment of Hamilton County – the development catalyzed by the stadium will hopefully relieve some of the growth pressure from my community because hundreds of new homes will soon be built downtown.”

Mayor Kelly said, “I have been working hard to make this project a reality since the day I came into office, so I am very happy we were able to work with our partners at the County, our City Council, and the private market to finally grind out this deal. I’ve handled some tough negotiations over 30 years in business, but I have never worked harder- along with my talented team, led by Jermaine Freeman- to make one happen, and it’s a win for all parties. And it’s a deal we can all be proud of, because it means that the vast, rusting brownfield that now sits vacant on our Southside will be transformed into something everyone in Chattanooga and Hamilton County can be proud of for years to come, creating great economic opportunities for a neighborhood that hasn’t seen any in ages, and producing millions in tax revenues to benefit our residents as well.“

City Council Chair Raquetta Dotley said, “I am thrilled to support this project in and for our community, who has been engaged in this vision since its beginning and who has pushed for continued revitalization in South Chattanooga for decades. It will deliver new housing, jobs, investment, and tax revenue for schools and public services for every Chattanoogan, especially those living in or near the TIF district in District 7. Honest, tough, fair negotiations with great partners got us to this point, and I am grateful to everyone involved for staying the course and believing in this project enough to get it over the finish line.”

Lookouts Managing Owner Jason Freier said, “While this arrangement is far from what we had originally proposed, we believe this new deal is in the best interest of all parties. It will assure the future of the Lookouts and baseball in Chattanooga for decades to come. The project will create a tremendous community asset and unlock an enormous amount of untapped potential at this site, helping to revitalize South Chattanooga and provide hundreds of millions of dollars for schools and other community needs. Thank you to Mayor Kelly, Chairman Eversole and Chairwoman Dotley for their essential leadership and for being willing to sit down to help us find a path forward on this important project.”

President of Perimeter Properties Chazen said, “I am grateful to Mayor Kelly, Chairman Eversole and Chairwoman Dotley for the many hours they have put into helping us reach this impactful public-private partnership to reshape our city and its western gateway.”

Officials supporting the deal said, "According to the conservative estimates of the Younger study (a firm used by the City and County many times, including at the Bend TIF), this stadium should catalyze over 30 years:

1. New tax revenue generated for county schools: $186 million (in new property tax revenue and new local-option sales tax revenue)

2. New tax revenue generated for city and county (excluding schools): $102 million

3. Development within the total TIF district: $1.1 billion

4. Regional economic impact: $2.3 billion