Economics
Sharpen your pencils.
See for yourself how the One Westside plan is a great deal for everyone.
The scope and scale of the One Westside plan required years of careful calculations, meticulous planning, and detailed discussions between community leaders and our neighbors.
Today.
Approximately two-thirds of the Bend’s former industrial site is currently underutilized brownfield land that only produces $140,000 per year in property tax revenue - an enormous untapped revenue source for our community that could fund better education, roads, parks, and other public services.
Also, our beautiful riverfront is significantly underutilized and the public housing options need improvement.
Tomorrow.
The new TIF district and Westside Evolves are expected to conservatively unlock a minimum of $800 million in new development over the next ten years, which will support the construction of infrastructure, educational opportunities, and new affordable housing. The Bend will be transformed from a brownfield into a live-work-play mixed-use expansion of downtown Chattanooga, including 3,000 linear feet of beautiful riverfront. The positive impact will be felt across Hamilton County through thousands of new jobs, new-to-Chattanooga corporate relocations, additional affordable housing, and more funding for public benefits like education.
What’s in it for Chattanoogans?
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Thousands of New Jobs
1111 W. Main is the first of many new 10+ story commercial buildings
Current commercial real estate demand is high; local vacancy rates are consistently ~4%; and Chattanooga is a top U.S. market
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New Corporate Headquarters
Space is specifically designed to attract a new-to-Chattanooga regional corporate headquarters
One million square feet of usable commercial space
Master-planned to efficiently accommodate every mode of transportation
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More (Affordable) Housing
Improved and expanded affordable housing options
Current residents of Westside will continue to live in their homes until improved options are available
New funding for the Chattanooga Housing Authority (CHA)
10% of all new residences will be designated affordable housing
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More Public Benefits
14 acres set aside for public greenspace, including 9 acres for a riverfront park with a commercial grade marina
Millions for Hamilton County Public Schools and new downtown education opportunities
A new fire station
New infrastructure to attract a new generation of investment
What is a “TIF?”
Tax increment financing (TIF) is a common funding tool used by cities and counties to revitalize blighted and under-utilized properties, such as the former industrial site that was once home to Combustion Engineering, Alstom and GE. As the improvement and development of these blighted properties increases their taxable value, local government sets aside a portion of the increase in property taxes to help fund public improvements in the area, improvements that also further catalyze the development – a virtuous cycle that will benefit people within and beyond the TIF boundary.
TIFs are enacted for a limited number of years, in this case 20 years per parcel. During this time, all existing property taxes will continue to be collected as usual. Of the new revenue collected as a result of new development, every dollar allocated to Hamilton County for school operations will still be collected. Only a portion of new revenues paid by property owners are set aside to help fund approved projects. After the TIF expires, all existing and all new tax revenues are collected and distributed as usual.
This TIF is unique in that it provides a split of every new tax dollar created: Here’s how the new tax revenue will be allocated through the end of the TIF:
Property Tax:
Of the County’s portion of new property tax revenue, the County will withhold its normal portions for essential County services and public schools;
Of the County’s remaining new property tax revenue, 53 percent of the remaining revenue will provide funding for downtown education opportunities, with the remaining funding being allocated to the TIF;
Of the City’s portion of new property tax revenue, the City will withhold its normal portions for essential City services;
Of the City’s remaining new property tax revenue, 53 percent of the remaining revenue will provide funding for the following:
Westside Evolves Revitalization Plan
New partnership with the County for downtown education opportunities
New fire station
Remaining funding to be allocated to sidewalks, roads, stormwater, light poles, and other public infrastructure improvements.
By leveraging private development to fund the community’s most pressing needs, the City and County will be able to significantly grow their tax base and provide additional services without raising taxes. And like most TIFs, this agreement is backed by the developer, meaning that Urban Story Ventures will invest its own money in public infrastructure, and will only be reimbursed when the property begins generating incremental tax revenue.
Grow the tax base = Grow the public good
The improvements envisioned at the Bend will drive tremendously more tax revenue to the City and County, without the need to increase taxes.
New tax revenue generated by the TIF will be used to pay for new roads, schools, public housing, green spaces, and much, much more.