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City presents draft pilot policies; IDB role narrowed and public hearings moved to city council
Summary
City staff presented a first draft of revised pilot policies that remove delegated authority to the Industrial Development Board and move pilot public hearings to city council; the draft establishes eligibility criteria, a points matrix, monitoring and clawback provisions and a multi‑week staff/council review timeline.
City staff presented a first draft of updated pilot policies to the Industrial Development Board, explaining that the delegation of authority to the IDB had been removed at the request of City Council and that the IDB would retain a role related to title and lease administration for pilot properties.
Sherita Allen and city staff walked the board through the draft, which defines eligible project types and links targeted industries to the Tennessee Department of Economic and Community Development and region‑specific sectors identified with the Chattanooga Chamber and the 1 Chattanooga economic development plan. The draft includes a points matrix to determine eligibility and pilot term based on jobs, wages and capital investment; additional “special consideration” points are available for sustainability (LEED or similar), brownfield remediation, location in targeted development zones, community benefits agreements, local education partnerships, unique employee benefits and exceptional corporate stewardship.
City staff emphasized the draft is preliminary and said the document was circulated late Friday; they expect further meetings with council members and stakeholders over the next two to three weeks before a final vote. The draft also adds environmental‑condition questions to the pilot application and requires that supporting documents be published and linked to the City Council agenda at least one week before any public hearing for a pilot.
Under the proposal, pilot public hearings would be held at City Council (with materials published in advance) rather than in front of the IDB; the IDB would continue to take title to property for the pilot term and enter a lease with the company for the duration of the pilot, with a deed back at the conclusion. Staff said the IDB would maintain monitoring and enforcement authority, including noncompliance payments and potential clawbacks if agreed conditions (jobs, wages, sustainability commitments) are not met.
Board members discussed operational implications. One member recommended the IDB coordinate calendars and proactively review pilots earlier in the city approval process so the board would not be surprised by council actions. Members asked if the draft policies would apply to Novonix; staff said Novonix had requested a 30‑day deferral and that several of the new application questions had been incorporated based on issues raised previously.
City staff said they would work with the Chamber to map a process flow that incorporates IDB review ahead of lease execution and said they anticipate several follow-up meetings before returning with a final draft for approval.
