WDEF News 12

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The City of Chattanooga takes the first step to make sure it can fund its part of the Volkswagen project.

Council members passed a resolution allowing the city to borrow up to 40 million dollars to pay for work related to the plant.

For Chattanooga council members it's up to 40 million dollars that just makes sense.

That's why they all agreed to allow the City to borrow at least that much to prepare for Volkswagen.

Daisy Madison, City Finance Officer, "We are just trying to make sure that we have the financing in place so that as the details are worked out specifically relative to the projects that money or the funding of it will not be a hinderance to timely completion."

Along with a welcome center for Exit 9 off I-75, the money would help pay for site preparation, railroad lines, a training center, roads, sewers, a fire station and related equipment, and telecommunications related to the Volkswagen plant.

Madison, "It's our expectation that it will not be that much. We went on what we think at this point to be a high dollar amount."

Madison says the City plans to split costs related to Volkswagen 50/50 with Hamilton County...the same way it has always divided projects at Enterprise South.

And then there's money from the state.

Madison, "Quite honestly the state is the really big money spender in this project. It's definitely a joint effort with the state being a major player and the city and county stepping up as well."

Madison says when the City learns exactly how much it will have to spend for the Volkswagen related projects, Council members will consider a resolution with the exact amount that needs to be borrowed.

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