The city Industrial Development Board on Monday approved moving $1.5 million to the Chattanooga Housing Authority to make up an unexpected funding gap on its ambitious One Westside project.
The panel also heard a report that the large Tax Increment Financing district around the new stadium had brought in $442,989 in new city taxes. Those were from projects already in the works prior to the launch of the stadium. The immediate site around the stadium at a former foundry site is still awaiting development.
The Bend project at the former Alstom site has not contributed any TIF funds.
Board member Jimmy Rodgers asked if the city is concerned about the pace of The Bend.
Cherita Allen, city senior advisor for economic and workforce development, said the city was not concerned, saying developers of The Bend have been focusing on getting the extensive infrastructure in place.
She said the stadium TIF covers a much larger area than that of The Bend.
The board was told that the East Chattanooga Rising TIF has not brought in even enough income to cover interest on a government loan.
Ms. Allen said the city next month plans to send out proposals seeking developers for the site, where a housing project once stood.
On the funds transfer to the CHA, Ms. Allen said the IDB will still have $1.4 million on hand. She said another $1,348,000 is due from various sources in coming months.
She said the city had earlier provided $4.5 million to the CHA after a couple of expected federal grants did not come through.
Betsy McCright, CHA executive director, said, "We appreciate the deliberations of the board and the continued support we are receiving to transform One Westside. Working in a changing environment isn’t easy; however, we will continue to do all we can to keep this important project moving forward. We are appreciative of so many who continue to support these efforts.”