The Industrial Development Board of the City of Chattanooga on Tuesday voted to acknowledge a city-council amendment to the Northgate Mall economic impact plan that reduces the maximum tax-increment financing allocation to $8.7 million plus interest. Sherita Allen, senior advisor for economic development and workforce development, said a third-party reviewer recommended a TIF range of $7.7 million to $8.7 million and the council
ccepted the lower figure instead of the applicant
sking for $9.2 million.

The acknowledgement before the board was described as clerical: Allen read a memo from outside TIF counsel confirming the council
mendment and advising that, under state law, the Industrial Development Board must also approve the amendment but not hold another public hearing. "City council amended the document and approved it, and this item is recognizing for the IDB to recognize that city council accepted the recommendation, amended the document, and approved it," Allen said.

A board member asked whether nearby multimillion-dollar property sales should be a concern for the board
s the project moves forward. That member noted local real-estate transactions and asked if the board should be worried; Allen said the TIF is an infrastructure incentive intended to encourage future development and that transactions nearby were consistent with ongoing redevelopment discussions.

The board voted to approve the clerical resolution acknowledging the council action. The motion passed and the board did not schedule further public hearings on the amendment; city staff and counsel said the amended economic impact plan and counsel
dvice would be available to board members ahead of any subsequent development-agreement review.

What happens next: the development agreement implementing the amended plan is expected to be drafted and returned to the board for review; staff said the IDB will have an opportunity to propose amendments to the development agreement before taking any final vote.