Council approves development agreement for Whataburger site in Border Region district; staff projects $3.5M investment

The East Ridge City Council voted unanimously on Feb. 27 to approve a development agreement with BKW Properties LLC related to a planned Whataburger at 6521 Ringgold Road.

City staff told the council the project is projected to involve about $3,500,000 in investment and that projected taxable sales were modeled beginning at $4,000,000 with an assumed 2% annual growth for purposes of the Border Region Retail Development District allocation calculation. Staff emphasized the baseline amount — the state sales tax previously generated at the parcel — is approximately $73,000, a figure supplied by the state and used in the district math.

Under the border region allocation described to the council, a portion of the state sales tax that would otherwise flow to Nashville is returned to the city. Staff presented an allocation proposal in which 90% of the border-region portion would go to the developer and 10% to the city; when the city’s baseline and other arithmetic are included, staff said the effective division over time is closer to a roughly 65/35 split in the city’s favor when the baseline is considered. The project previously received unanimous approval from the Industrial Development Board (IDB).

A staff presenter said the developer had submitted projections and plans, and that the city had already received plans for review. The administration told the council the project would bring tax revenue to the city by activating a parcel that currently produces only baseline state-sales-tax returns; staff noted the baseline historically reduced the district allocation while the property was vacant.

The council approved Resolution 3654 by roll call. The recorded vote was unanimous in favor. The presenter noted the agreement and the allocation mechanics are tied to the state-administered border region program and stressed there is no local guarantee that state sales tax returns would be redistributed except through the border-region mechanism.

No local property-tax incentives or direct city capital were approved at the meeting; the item is an agreement to participate in the border region allocation and to authorize the development agreement and related city actions.

City staff said they will proceed with contract steps and with ministerial approvals needed for site and building-plan review. The developer representative and staff were present to answer council questions about seats and parking; staff estimated a typical seating-to-parking ratio when describing site need.

Council action: Resolution 3654 approved; IDB had previously forwarded the measure with unanimous support.