The Deal
Generational Investments Demand Conservative, Long-Term Financing Plans.
A Homerun for Hamilton County
Development begets development, and the South Broad District is primed for growth. Within one year (according to the most updated Younger study), the project is expected to generate more revenue than necessary to pay down the bond used to fund the stadium construction, allowing surplus funds to flow to schools, the City, and the County.
By generating $186 million in additional education funding for Hamilton County Schools and $102 million for the City and County over the next 30 years — without the need to raise taxes — future generations will thank us for our foresight.
The conservative development goal ($1.1 billion at full build-out) is very achievable. The two prior projects led by the Lookouts ownership have already led to over $1 billion in investment around the stadium in Fort Wayne, Indiana (in approximately 13 years) and over $650 million in investment around the stadium in Columbia, SC.
The $115 million mixed-use stadium will be financed by:
$80 million in bonds issued by the city-county Sports Authority, to be paid back mostly by new city and county tax revenue generated by the stadium development
$1 million interest earnings on above $80 million bond
$26 million private loan obtained by the Lookouts and Perimeter Properties (landowner), paid back with new city-only property tax revenue from within the 470-acre TIF district
$5 million in sports authority debt, also repaid from city property taxes
$3 million cash up-front contribution from Lookouts
Additionally, the Chattanooga Lookouts will:
Pay the highest rent in Minor League Baseball ($1+ million per year) for 30 years
Pay all operating and maintenance costs for 30 years (estimated to cost approximately $1.5 million per year)
Pay all cost overruns over $115 million to construct the stadium
Additionally, the landowner (Perimeter Properties) will:
Contribute $10 million worth of site preparation and infrastructure
Donate approximately 9 acres of land for the stadium (they have already donated 12 acres to expand the Tennessee Riverwalk within the South Broad District)
Never ask the City or County for additional financial contributions on the site
What’s a “TIF?”
TIF is an acronym for tax increment financing, a common financing tool used by cities and counties to develop underutilized sites across the United States (other states use other names for essentially the same financial tool). TIFs are used by municipalities to “capture” all new tax revenue generated within the district for the purpose of repaying debt on a public investment (like a multi-use stadium) that catalyzes the growth within the TIF district. TIFs are widely used because they give local governments an opportunity to spur regional growth without spending existing tax dollars.
According to the most recent Younger study (based on an extremely conservative estimate of $1.1 billion of development within the TIF district over 30 years, the plan to revitalize South Broad will provide the following financial benefits for our community:
Hamilton County Schools: $186 million (new property tax revenue and new local-option sales tax revenue)
Hamilton County and the City of Chattanooga: $102 million
Once stadium debt is paid off and the other specific projects listed in the economic impact plan are completed, the County Industrial Development Board, the City Industrial Development Board, the County Commission, and the City Council can vote to amend the TIF so that incremental property taxes start flowing to general funds rather than the TIF district only.
Downloadable Financial Resources
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Executive Summary and FAQs
A 6 page executive summary + 6 pages of answers to frequently asked questions (“FAQs”).
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TIF District Map
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Economic Impact Study
In May of 2022, The Chattanooga Chamber of Commerce hired CSL International, a leading advisory and planning firm, to produce a tax revenue and economic impact assessment for a new multi-use stadium.
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7/22 DRAFT Economic Impact Analysis (by The Younger Group)
The economic impact analysis provides an overview of the total operational and construction economic impact of planned development, as well as a projected schedule of property tax revenue for 30 years based on $350 million of development.
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Hamilton County Industrial Development Board Economic Impact Plan for South Broad District TIF
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Interlocal Agreement between Hamilton County Industrial Development Board and City of Chattanooga Industrial Development Board
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Hamilton County IDB Resolution for the Economic Impact Plan
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Hamilton County IDB Resolution for the Interlocal Agreement
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City of Chattanooga Economic Impact Plan
Provides the overview of the purpose and characteristics of the City of Chattanooga's TIF District
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Resolution for the City of Chattanooga's Industrial Development Board to vote on the Interlocal Agreement