The Chattanooga Lookouts on Friday made good on their promise to help finance the multi-use stadium in the South Broad District by closing on their $17,000,000 loan with a consortium of local financial institutions . The proceeds of this private loan will be used by the City-County Sports Authority to construct the publicly owned stadium. The project is now fully funded as this private loan was intentionally scheduled for the same day that the municipal bonds for this project closed.
Although the Lookouts are helping to build the multi-use stadium, the facility will be a public asset that is jointly owned by the city of Chattanooga and Hamilton County. Furthermore, the Lookouts are contributing $3,000,000 in non-reimbursable cash for construction, will pay a rent of over $1+ million per year for 30 years, pay all operating and maintenance costs (over $1.5 million per year) for 30 years, and pay all cost overruns over $115 million to construct the stadium.
FirstBank led the syndicate of local financial institutions on this loan, which includes Tennessee Valley Federal Credit Union, SmartBank, Citizens Tri-County Bank and WesBanco Bank.
“Working with local partners is always a priority for the Chattanooga Lookouts," said Lookouts Managing Owner Jason Freier. "We are thankful to these local financial institutions for their hard work and true commitment to investing in the local economy. This is a complex loan, and it took a great deal of determination to complete. Like many in Chattanooga, these financial institutions believed in this project and wanted to do what they could to make it happen. Now it's time to build something remarkable that will revitalize the South Broad District and benefit the entire region.”
“As the official bank of the Chattanooga Lookouts for many years, FirstBank is very excited to be the lead bank, for a group of Chattanooga banks, who are providing $17,000,000 to help facilitate the new ballpark, said Jim McKenzie, market president for FirstBank. “In a broader sense, we are also excited that this project is the catalyst for transforming the dilapidated foundry buildings in the area and the South Broad District at large into what will be a vibrant area for all Chattanoogans to work, live and play. Much like the Tennessee Aquarium did for the Riverfront area of Downtown Chattanooga 32 years ago, this baseball stadium will radically transform a tired, old, visually unappealing site into a fresh, vibrant and visually appealing area. This transformative project and redevelopment will certainly enhance Chattanooga’s reputation as the Scenic City of the South, and again we are delighted to be involved with a project of this magnitude which will positively impact generations to come!”
"SmartBank is proud to play a key role in financing the new stadium for the Chattanooga Lookouts,” said Craig Miller, SmartBank market president, Chattanooga. “This project represents a major investment in our community, and we’re excited to support something that will drive both economic growth and local pride."
“As a locally owned financial cooperative, TVFCU has been serving our members and this community since 1936,” said Todd Fortner, president and CEO, TVFCU. “Being part of the financing for the new Chattanooga Lookouts stadium project is more than just financial support; we see it as another opportunity to invest in the community. Together, we’re helping building a brighter future for all.”
“In addition to the city’s rich history, baseball and the ‘The Chattanooga Lookouts’ have been an essential part of Chattanooga’s culture since 1885 and continues to be a remarkable time-honored tradition,” said John V. Barker, president and CEO, Citizens Tri-County Bank. “We here at Citizens Tri-County Bank are greatly honored to be a part of this incredible organization’s continued growth and success.”
“WesBanco is proud to stand alongside the Chattanooga Lookouts, community partners and fellow local financial institutions in supporting this transformative stadium project, which is sure to be a community destination that generations will enjoy,” said Adam Thomas, Chattanooga city president, WesBanco. “This collaboration not only supports our local economy but promises to bring renewed vibrancy to the South Broad District and beyond, reflecting our commitment to making every community we serve a better place for people and businesses to thrive.”
"With last week's bond sale and now this loan complete, the stadium project is on track for success,” said Chattanooga Mayor Tim Kelly. “All of the community partners who have joined in this effort, including the Lookouts and the local financial institutions they worked with on this loan, will have played a proud part in Chattanooga's history when this is complete. The stadium is the linchpin of a development that will transform an entire section of downtown, adding badly-needed new housing and economic opportunity."
“The South Broad project is an example of how the public and private sectors can – and must – come together to create economic opportunities in areas that have been historically overlooked,” said Chattanooga Chamber of Commerce President and CEO Charles Wood. “The Chamber believes in this exciting project because it will unlock economic activity, attract new businesses, and represents the next chapter in Chattanooga’s continued renaissance.”
Information about the financing of the stadium is available at https://www.southbroad.info/the-deal. Follow along with the stadium's construction via a live camera at https://www.southbroad.info/live-camera.