IDB approves Northgate Mall TIF to go to next step

CHATTANOOGA, Tenn. (WDEF)-  A proposal to modernize infrastructure at Northgate Mall passed its next step.

The Industrial Development Board approved a tax increment financing district to continue up the chain for the Hixson retail district.

The mall’s owner, CBL, says that a portion of sales tax generated by new businesses such as BJ’s Wholesale would go to replacing their outdated private sewer system.

They say without replacing that system, the mall will not be revitalized.

There were concerns raised if sales tax generated by a property could be used to address its infrastructure.

Developers argue a combination of state law and city code gives them this right.

Attorney Betsy Knotts said, “The statute would allow the IDB to utilize essentially city wide local option sales tax that’s available, but here we’re just using from the property directly an increment portion of the sales tax. I think once people understand there’s legal authority for it and that we’re being very conservative here, they’ll probably be more comfortable.”

If the TIF District is created, the sewer system would be replaced in 20-27.