Chattanooga council considers intent to pursue TIF-backed Northgate redevelopment; timelines and tax questions raised

The Chattanooga City Council on Oct. 14 debated a resolution expressing the council’s intent to consider an economic impact plan that would authorize tax increment financing for the Northgate redevelopment.

Councilman Davis said he would move to approve the resolution to allow the application to proceed to the Industrial Development Board’s (IDB) application review committee. “I do intend when that comes up for a vote to make a motion to approve that resolution,” Davis said, describing the vote as a step to continue review rather than final approval.

The council’s discussion focused on when construction would start, whether Hamilton County would participate, what taxes would fund reimbursement and how much the city might be obligated to reimburse. Sherry Down, senior advisor for economic development and workforce development for Chattanooga, told council members the project is anticipated to start Jan. 1, 2027. “It is anticipated … the project would start 01/01/2027,” Down said.

Council members asked whether county participation was required. Down said the project does not depend on county participation. She explained, “The way the city of Chattanooga TIF policies are written, the city cannot encumber county taxes. The county has to decide to…