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Hamilton County discussion centers on $750,000 hotel-motel fund plan and long-term stadium debt concerns
Summary
County staff proposed allocating up to $750,000 from the FY2026 hotel-motel fund to multiple local projects including $250,000 for downtown retail recruitment, $150,000 for airline recruitment, and seed funding for splash pads; commissioners debated whether to reserve funds for future stadium bond debt service and deferred action to next week.
County staff presented Resolution 126-22, which would allocate up to $750,000 from the FY2026 hotel-motel fund to several specifically identified projects.
The staff overview said the allocation is intended for three categories: $250,000 to River City for downtown retail recruitment in Commissioner Mackey’s district (matched by the City of Chattanooga), approximately $150,000 committed by partners for an airline recruitment program stewarded by the Chattanooga Chamber Foundation, and other creative uses including turf installations at public facilities and potential splash pads in certain neighborhoods.
A staff member noted that Lookout Valley generates nearly $1.7 million annually in local hotel-motel tax revenue and argued for reinvesting some of those receipts locally (the splash pad was cited as a modest, locally beneficial project).
Several commissioners questioned whether spending now jeopardizes the county’s ability to cover future debt-service payments on the stadium bonds. County staff said the debt-service schedule has modest payments in FY2026 and larger payments in FY2027–FY2028, and that after the resolution the county expects about $750,000 remaining in the hotel-motel fund (a staff speaker referenced city reimbursement expectations that would increase that balance if realized).
One commissioner said the county had spent $1,250,000 from the hotel-motel fund in the previous two weeks and expressed concern about the pace of spending; commissioners agreed to take the resolution up next week for formal action.
