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Collegedale leaders debate using county $250,000 parks grant to buy property, fund courts

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Summary

City commissioners discussed applying for a Hamilton County municipal parks grant (up to $250,000) and whether to pursue acquisition of a roughly 1-acre parcel next to the Little Debbie Park parking lot that an owner is asking $500,000 for; staff said park build-out would exceed available grant funding and would likely require sizable city funds.

Collegedale commissioners on Tuesday discussed whether to apply for a Hamilton County municipal parks grant that offers up to $250,000 per municipality and whether to use any award toward acquiring and developing a nearby parcel that is for sale.

City staff described two concept options in the commission packet: improvements at the Thatcher Switch site, where staff previously prepared a Blue Cross Blue Shield grant application, and a proposed development on the Ooltewah‑Ringgold Road parcel adjacent to the Little Debbie Park parking lot that Commissioner Johnson had identified. The owner identified only as “AJ” is asking $500,000, staff said.

Staff said the county grant would cover only a portion of a project. “The maximum the county will provide is $250,000,” a staff presenter told the commission, and added the city’s likely investment would exceed that amount. Staff estimated that courts-only work (without restrooms) at the Ooltewah parcel would still “exceed the half‑million pretty easily,” and that a full build — acquisition plus courts and restrooms — could approach “three‑quarters of a million or a million dollars,” with only $250,000 coming from the county grant if awarded.

The commission weighed whether the city should buy land and hold it for later development or use grant funds to improve existing city property such as Thatcher Switch. Commissioners pointed to competing priorities: one commissioner favored acquiring the parcel next to existing parking to create a destination connected to nearby restaurants and the greenway; others preferred investing on the city’s East Side or using grant funds for improvements to sites the city already owns. Commissioners also discussed whether the city would re‑sell acquired property to a private developer and warned that municipal development is often slower and more expensive than private development.

Commission discussion included prior grant experience: staff said a Blue Cross Blue Shield “healthy places” grant application previously prepared for Thatcher Switch was approximately $1,250,000; the city did not receive that award. Staff also said the county program rollout was recent and the scale of awards was not yet known. Commissioners noted multiple county grant deadlines, and staff identified June 30 and August 31 as application cutoffs for the current rounds. Several commissioners recommended getting market comps on the parcels before committing to acquisition; staff said they would obtain realtor pricing and bring back next steps.

The commission directed staff to pursue the county grant application process if the commission can resolve whether it wants to acquire the parcel. Staff said it could not meet the immediate end‑of‑month deadline but could aim for the August cycle once commissioners provide clearer direction on site selection and community input methods.