Northgate Mall tax deal approval, Alton Park Connector contract

A completed portion of the planned Alton Park Connector outside the Borough 33 apartment complex on E. 33rd Street. (Photo/William Newlin)

See the full Dec. 2 meeting agenda here

Northgate Mall TIF

A 20-year tax increment financing (TIF) agreement to improve water and sewer lines at Northgate Mall was approved. The city has said modernizing utilities will encourage Northgate’s redevelopment. After the 20-year TIF period, the city will receive control of the water and sewer lines.

Already approved by the city’s Industrial Development Board, the plan will reimburse the mall owners up to $8.7 million for updating water infrastructure. The reimbursement will come from new property taxes generated by the site — called the “tax increment.” The mall owners will continue to pay taxes on the 2024 value of the property over the 20 years.

City officials have said this TIF differs from other tax agreements because it doesn’t include above-ground development, just the infrastructure.

Without a major development planned for the site, the property tax increment will not be enough to cover the mall owners’ costs under typical TIF rules. So, the deal allows the mall owners to receive a larger-than-usual share of the increment as well as city sales tax revenue from the TIF area.

$1.8M for Alton Park Connector

Public Works received approval to sign a $1.8 million contract for construction on the Alton Park Connector, a proposed walking path from the Riverwalk to Clifton Hills Elementary. Earlier this year, the EPA withdrew a $20 million grant earmarked for the project.

CSAS landmark status withdrawn

Preserve Chattanooga was approved to withdraw its application to make the Chattanooga Schools for the Arts And Sciences a local historic landmark. The city’s Historic Zoning Commission approved the designation in 2023, which Preserve Chattanooga submitted at the request of a group of alumni. City Council never gave final approval.

Changes to a landmarked property must be approved by the commission, and Hamilton County Schools questioned whether the city’s historic zoning code could regulate a county-owned school property.

Preserve Chattanooga’s Executive Director Todd Morgan said he’s withdrawing the application because of the opposition from HCS.

Avondale Baptist rezoning

Council members deferred a developer’s request to rezone 2003 Wilcox Blvd. to turn the former Avondale Baptist Church into a multi-family complex. Council previously deferred the request on Nov. 18, citing a lack of communication about the project.

One resident asked the developer to include affordable units and work with community members to retain part of the old church structure.