East Ridge board approves 20‑year development deal for Scooter's Coffee at 1491 Maxmith Road

The East Ridge Industrial Development Board on March 30, 2026 voted to approve Resolution 2026‑32501, authorizing a 20‑year development agreement with Art Holdings Tennessee LLC for property at 1491 Maxmith Road that will include a Scooter's Coffee drive‑thru and an adjacent retail unit.

Staff introduced the agreement and said the site plan (attached as an exhibit to the resolution) locates the project at the corner of North Maxmith and Ringle Road. Staff said the agreement uses a $50,000 baseline and projects taxable sales that translate under the Border Region formula to about $144,000 in tax revenue in the first operating year and roughly $4.3 million in state sales tax returns over 20 years.

Under the negotiated terms staff recommended and the board approved, the returned revenue will be allocated 80% to the developer and 20% to the city, after accounting for the baseline. Staff described the proposal as comparable to prior development agreements under the Border Region program and recommended approval of the 80/20 split through 2047.

Ross the stemuk, representing Art Holdings Tennessee LLC and the Scooter's Coffee franchisee, said demolition is complete, construction is targeted to begin with the Scooter's opening around mid‑June, and the developer expects an overall investment of about $4.46 million. "This is our seventh location locally," Ross said, adding that the franchise anticipates four to six employees on duty at peak times and about 22–25 jobs total for the site.

Board members discussed returns and market factors; staff and the developer said the estimated developer return is about 59–60% (approximately $2.66 million to the developer over the agreement term). Staff also pointed out restrictions in section 3.02 of the agreement that prevent certain tenancy types in the second building (for example, pawn shops, adult entertainment, tanning salons and payday lenders) to ensure a "first‑class" retail tenant.

During a roll‑call vote, Board member Allen, Board member Jones, Board member McClendon and Acting chairperson Jessica Crow recorded "yes" votes and the motion passed. The board congratulated the developer and staff and adjourned the item.

The resolution approved a development agreement that staffs said will allow the city to be competitive for national retailers at a costly corner; the agreement depends on the developer meeting site and program requirements and on the state Border Region return mechanism that delivers state sales tax dollars to participating localities. The meeting then moved to adjournment.