Sports authority approves architect change order and other contract adjustments for South Broad ballpark

The Chattanooga Sports Authority on Aug. (date not specified) approved a series of contract adjustments for the South Broad District ballpark, including a $735,906.75 change order to the executive architect contract and related payments for materials testing, an escrow disbursement to a landowner and a gas-line extension.

The actions approve: a $735,906.75 change order plus a $45,000 reimbursable-expense allowance for the executive architect contract (total change-order amount $780,906.75, raising the contract to $5,123,906.75); a $143,615 change order to add special inspections to the materials-testing contract (total $327,062); payment of $167,862 to Pike Properties from unallocated bond interest under an escrow agreement; and authorization to execute an agreement with Chattanooga Gas Company and pay up to about $80,251 for a natural-gas line extension to serve ballpark concession operations. Each measure was moved, seconded and approved without recorded opposition.

Why it matters: The changes adjust professional-services and inspection scopes while finance staff said the work remains within the stadium budget of $86 million and the project'wide capital stack of $125 million. Board members and staff stressed the need to track remaining unallocated funds and to show TIF (tax increment financing) receipts versus projections at future meetings.

City finance presentation and project update Paul Boylan, who introduced the financial progress report as a member of the city's accounting department, said the project shows roughly $59 million in encumbrances on the stadium line and that the authority will make a third drawdown of about $14 million from the project bank account before the next meeting. He explained that a $76 million figure tied to US Bank should be nearer $61 million after that drawdown.

Sherry Allen, senior adviser for economic and community development, presented public-works and construction slides. Andy Stone of Primitive Properties showed a drone update and described site progress: "Starting to look like a stadium... We're out of ladder mode and into the work," Stone said, adding that drainage work and a field stability system limited weather-related delays. Stone said the Riverwalk closure was necessary for water and utility work and that re-opening is weather dependent and expected in early 2026 (first quarter), according to the presentation.

Architect change order Staff described change order No. 1 to the executive architect's contract as covering several design revisions and reimbursable costs that were in contract language but not yet funded. The revisions cited include raising the field level by 10 feet during schematic design (a decision driven by concerns raised by the Tennessee Department of Environment and Conservation about nearby groundwater and contamination), design changes to the powerhouse, the pattern shop and the third-base building, coordination for team-provided equipment and revised kitchen equipment provisions, and additional structural and mechanical coordination. Staff and the authority clarified that the change order is a contract amendment rather than a demand for additional overall project funding; they said the authority remains under the stadium budget of $86 million and under the project cap of $125 million.

Materials testing change order A change order for the materials-testing contract adds $143,615 for third-party special inspections and increases the contract to $327,062. Staff said the increase stems partly from a structural-engineer decision to require 100% ultrasonic testing of certain moment-welds on a large steel building rather than the 10% sampling assumed in the initial budget, increasing testing volumes and cost. Staff noted the inspections are required by building-code processes (third-party inspection per the International Building Code) and are intended to provide independent verification of code compliance and construction quality.

Payment to Pike Properties under escrow agreement The board approved a payment of $167,862 to Pike Properties to reimburse carrying costs included in an escrow agreement tied to the sports-authority bonds. Staff explained the escrow agreement (signed Oct. 2024) provided that interest earned on committed funds deposited with the lender could belong to the lender or, in this case, to the properties per the agreement language. Staff characterized these funds as bond-interest proceeds rather than line-item construction budget dollars.

Gas service authorization The authority approved authorizing the chair (or designee) to sign agreements and pay Chattanooga Gas Company up to roughly $80,251 to extend natural-gas service across the Riverwalk to a metering point at the ballpark for team food operations. Staff said the cost is budgeted and the utility extension is intended to support concession and kitchen operations.

Board questions and next steps Board members pressed staff about how the change orders would be shown in future budgets and asked for clearer tracking of unallocated funds. Staff said several contingencies exist: owner-held contingencies and contractor contingencies, and that contractor contingency funds had not been spent. One staff member estimated that after the three change orders introduced at the meeting, the unallocated portion of the stadium budget would be roughly between $300,000 and $500,000 (not specified precisely at the meeting).

A public commenter, Sean Stallings, asked about TIF revenue used to service the bonds. Staff said the TIF district is already generating increment from parcels that have increased in value, and they agreed to provide board members with TIF documentation and to add a comparison of actual TIF receipts versus projected receipts to future financial updates.

Votes at a glance - Change order No. 1 (executive architect): approved (motion/second recorded; no named roll-call). Change order amount $735,906.75; reimbursable expenses allowance $45,000; new contract value $5,123,906.75. - Materials-testing change order: approved (motion/second recorded; no named roll-call). Add $143,615; new contract value $327,062. - Payment to Pike Properties (escrow agreement): approved (motion/second recorded; no named roll-call). Payment amount $167,862 from unallocated bond interest. - Chattanooga Gas agreement and payment authorization: approved (motion/second recorded; no named roll-call). Authorization to pay up to approximately $80,251 for gas-line extension.

The authority asked staff to show updated budget allocations that reflect approved change orders and to include TIF receipts and projections in the next financial packet.