News Summary
Chattanooga has allocated $6 million to address a funding gap in the Westside Redevelopment Project, critical for urban revitalization. With $1.5 million from the city’s Industrial Development Board, the city aims to move forward despite losing anticipated federal grants. The funds will help renovate the historic James A. Henry School and support various community services. The outcome of the upcoming vote on this allocation will be pivotal for future development in the area.
Chattanooga has allocated $6 million to address an unexpected funding gap for the Westside Redevelopment Project, according to Betsy McCright, the Executive Director of the Chattanooga Housing Authority (CHA). The funding aims to ensure continuity in a project that is a critical component of urban revitalization in the area.
The allocation is broken down with $1.5 million coming from the city’s Industrial Development Board (IDB). Initially, the city anticipated receiving two federal grants totaling $7.9 million to support these projects. However, it now appears unlikely that the city will receive a $5 million grant and a $2.9 million Department of Energy C-Site Grant. This unexpected shortfall has prompted the city’s intervention.
The IDB has funds that have not been previously assigned, making it possible for the allocation of $1.5 million to be utilized for the housing projects. Concerns were raised by IDB member Jimmy Rodgers regarding the legal implications of using IDB funds in this manner. However, City Attorney Phil Noblitt has clarified that a state law passed last year permits the use of these funds for housing initiatives, mitigating legal concerns ahead of the upcoming IDB vote on the issue scheduled for next month.
Despite the funding gaps, there is confidence about the completion of phase one of the Westside project. This initial phase will focus on the renovation of the historic James A. Henry School, built in 1937, which is set to be renamed “The Hub.” The Hub will host various programs, including Head Start and services operated by the Boys and Girls Club. Additionally, a new wing will be constructed to accommodate a medical clinic operated by Erlanger, expanding healthcare access to the Westside community.
A significant aspect of the Westside Redevelopment Project is the One Westside initiative, which was previously awarded a $50 million grant from the Department of Housing and Urban Development (HUD). However, nearly $8 million of the anticipated HUD funding is now unavailable due to federal budget cuts. This financial setback is impacting future development plans for the area, underscoring the critical nature of the missing federal funds as emphasized by McCright.
The IDB’s decision regarding the $1.5 million allocation is separate from The Bend project, which is currently under construction across Riverfront Parkway and is privately funded. The distinction between these projects is significant as the city seeks to maintain momentum in the Westside redevelopment amid funding uncertainties.
As the city navigates these financial challenges, the focus remains on moving forward with revitalization efforts in the Westside area, ensuring that the community benefits from essential services and infrastructure improvements. The outcome of the forthcoming IDB vote will be pivotal for the project’s immediate future, and its implications may extend into longer-term development strategies for Chattanooga.
Deeper Dive: News & Info About This Topic
HERE Resources
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Additional Resources
- WDEF News
- Times Free Press
- Chattanooga Pulse
- Housing Finance
- Wikipedia: Housing in the United States
Author: STAFF HERE CHATTANOOGA WRITER
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