Yesterday, Mayors Tim Kelly + Jim Coppinger announced a new revitalization plan for the South Broad district in Chattanooga, TN.
After more than two decades of sitting vacant + years of studies, 140 acres of the former US Pipe and Wheland Foundry site will become a vibrant, live-work-play community and the site of a new multi-use stadium which will host the Chattanooga Lookouts (AT&T Field will go to River City Co. for use in the ONE Riverfront plan).
The city + county have partnered with real estate firm New City Properties to head as the master developer for the project through every stage of design, restoration, and construction.
The plan
The stadium serves as a catalyst for the project, but the development expands the full 140 acres of the site.
The first phase of the project will attract over $300 million in private investment to build multi-family residential buildings, a class-A office building, and the multi-use stadium. The overall private investment is expected to be in the range of $1-1.5 billion.
The stadium will be owned by the Chattanooga Sports Authority — a new entity formed by the City of Chattanooga + Hamilton County — to host the Lookouts and other community events.
Additionally, a new exit from Interstate 24 will be constructed leading to the development.
Budget + funding
The construction of the stadium will cost ~$79.5 million.
96% of funding to construct the stadium comes from the project itself (through investment from the private developers + payments from the Lookouts):
- 63% | from property tax on the new private development
- 22% | from the Lookouts $1 million + annual lease payments
- 6% | from state sales tax generated in the new stadium
- 4% | from parking revenues from stadium events
- 1% | from local sales tax generated in the new stadium
4% of funding comes from the city + county.
Benefits
According to the plan, within 5-7 years, the project is expected to generate more revenue than necessary to pay the bond used to fund the stadium construction — allowing surplus funds to be directed to infrastructure needs + other projects in the district.
Additionally, over the next 30 years, the project is expected to generate at least $40 million in additional education funding for Hamilton County Schools, without raising taxes for residents.
According to Mayor Kelly, the project will create a brighter, cleaner, and more accessible area for South Broad residents + a gateway from Hamilton County to the City of Chattanooga.