Chattanooga, September 30, 2025

News Summary

The Chattanooga City Council is reviewing a tax increment financing (TIF) proposal aimed at improving Northgate Mall’s infrastructure. City officials stress fair negotiation practices for taxpayer agreements and highlight concerns over potential diversions of public funds from essential services. The proposal raises issues regarding the financial contributions from the mall’s owner, CBL, and the long-term implications for taxpayers, as discussions continue about sustainable development and community interests.

Chattanooga

The Chattanooga City Council is currently evaluating a new proposal for tax increment financing (TIF) aimed at improving the infrastructure of Northgate Mall. This application is particularly notable as it seeks to establish fair negotiation practices for taxpayer agreements when providing economic incentives. City officials emphasize the importance of cautious and balanced infrastructure improvements that do not excessively burden taxpayers.

The proposed TIF raises critical concerns about economic incentives that can divert millions of public funds away from essential services such as policing, fire safety, and affordable housing initiatives. In the previous year, a staggering $30 million in combined city and county property taxes were either diverted or abated due to various tax agreements. TIF agreements often extend for decades, creating a long-term potential burden on taxpayers while offering substantial benefits to developers.

One relevant example is the funding structure for the new baseball stadium for the Chattanooga Lookouts. In this case, taxpayers covered approximately 75% of the $115 million total cost, with the Lookouts contributing only $3 million upfront. Notably, the site owner paid nothing towards the project, and the state did not provide any financial support. No hotel-motel taxes were used in this funding arrangement. In comparison, Knoxville’s recent stadium financing required taxpayers to cover only $65 million, while the team contributed $30 million along with state assistance.

As part of this evaluation, Mayor Tim Kelly’s office aims to initiate discussions with CBL, the owner of Northgate Mall, regarding the proposed TIF focused on enhancing the outdated sewer system. However, several significant questions remain unanswered in the proposal, particularly concerning CBL’s financial contribution and the involvement of the Hixson Utility District in funding these projects.

CBL is expected to request waivers from key taxpayer protections, including city contribution caps and independent reviews, which could grant them greater financial benefits from the TIF. Furthermore, CBL seeks reimbursement from sales tax revenues generated specifically at the mall, a move that may further deplete public resources. Historically, shopping center developers have been expected to fund their internal infrastructure, fueling debate over whether this proposal deviates from established norms.

While many stakeholders agree on the necessity of revitalizing Northgate Mall, there is considerable pushback against granting a “blank check” to CBL without ensuring their meaningful financial contribution. Critics assert that the proposed TIF could set dangerous precedents that might undermine careful financial policies intended to protect taxpayer interests.

Community representatives are vocal in their belief that both CBL and the Hixson Utility District should contribute substantially to the proposed infrastructure investments for Northgate Mall. On a related note, the City Industrial Development Board recently approved a separate $115 million TIF package for the Westside project, which is designed to enhance affordable housing, infrastructure development, and education in the area.

The Westside project is projected to unlock an impressive $800 million in new investments and will include a diverse mix of commercial space and public parks. This initiative has garnered significant community input, with local residents being actively involved in the planning and execution process. Mayor Kelly has underscored that the Westside plan prioritizes historic preservation and green spaces while aiming to address the community’s needs effectively.

The Chattanooga Housing Authority and Urban Story Ventures are key partners in bringing the vision of a vibrant and economically prosperous Westside to fruition.

FAQ

What is TIF in Chattanooga?

The proposed TIF aims to ensure fair negotiation for taxpayer agreements when providing economic incentives for infrastructure improvements at Northgate Mall.

How much tax revenue was diverted last year?

In the previous year, $30 million in city and county property taxes were diverted or abated due to tax deals.

What has been the public response to the Northgate Mall proposal?

Many stakeholders believe revitalizing Northgate is essential, but there is pushback against providing a “blank check” to CBL without meaningful contributions.

What was covered by taxpayers in the Lookouts’ stadium funding?

About 75% of the $115 million cost of the Lookouts’ new baseball stadium was borne by taxpayers.

What is the expected impact of the Westside project?

The Westside project is projected to unlock $800 million in new development and will include a mix of commercial space and new public parks.

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Additional Resources

• Times Free Press: Opinion on Northgate Tax Breaks
• Chattanoogan: Approval for $115 Million TIF
• Local 3 News: Special Announcement on Westside Community
• Fox 17: Work Begins on New Lookouts Stadium
• Chattanooga Pulse: The Watchdog
• Wikipedia: Chattanooga
• Google Search: Chattanooga News
• Google Scholar: Chattanooga Infrastructure
• Encyclopedia Britannica: Chattanooga
• Google News: Chattanooga

Author: STAFF HERE CHATTANOOGA WRITER

The CHATTANOOGA STAFF WRITER represents the experienced team at HEREChattanooga.com, your go-to source for actionable local news and information in Chattanooga, Hamilton County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Riverbend Festival, Chattanooga Oktoberfest, and Moon River Festival. Our coverage extends to key organizations like the Chattanooga Area Chamber of Commerce and United Way of Greater Chattanooga, plus leading businesses in manufacturing, insurance, and utilities that power the local economy such as Volkswagen Chattanooga, BlueCross BlueShield of Tennessee, and EPB. As part of the broader HERE network, including HEREBristol.com, HEREKnoxville.com, HEREMemphis.com, and HERENashville.com, we provide comprehensive, credible insights into Tennessee's dynamic landscape.