City Council members voice concerns, but move ahead on Northgate TIF proposal

CHATTANOOGA, Tenn. (WDEF)- The proposal to turn Northgate Mall into a special tax district continues to stir debate. 

Northgate Mall’s owner, CBL Properties, says that their sewer system needs to be replaced.

It has been in place since the mall opened in the late 1960s, as it was built before the city of Chattanooga annexed the Hixson area.

This is as sales tax revenues have fallen by half over the past decade.

However, their desire to use sales tax revenue to fund it is leading to conservations about equity.

Council member Dennis Clark said, “I’m sorry CBL, we’re not in the retail business. We are not responsible for private revenue because of what their declining sales are.”

CBL previously stated that their sales tax revenues at Northgate decreased in half over the previous decade.

However, according to their most recent financial report for the second quarter of 2025, they had $288 million dollars of unrestricted cash and marketable securities on hand.

They stated to replace the sewer system, it would cost about $15 million, and without it, no large scale development could occur on the mall property.

But, recent business openings such as Culver’s and the soon to be anchor BJ’s Wholesale have some questioning if the city should be involved at all.

Clark said, “How is this equitable to other areas such as mine, that are waiting on TIFs, i.e, for grocery states and economic development on Highway 58, when this area already has development in motion.”

The city states that this proposal is not to favor Hixson over other areas.

Cherita Allen, who oversees economic development for the city of Chattanooga, said, “The interest from an economic development standpoint is to take a large asset, a large parcel that historically has generated significant sales tax and property tax that goes into our general fund. That has been steadily declining.”

Also of concern to City Council members is if Hamilton County intends to participate in this TIF District.

The county has not heard this proposal.

Council member Chip Henderson said, “If the county doesn’t participate, then it’s all going to be city dollars that we’re on the hook for, whether it takes 10 years, 15 years, 20 years, we’re now on the hook for the $9 million.”

The county’s portion of the TIF would be $1.5 million dollars.

However, Allen states that the project can move forward without county involvement.

Allen said, “The city is not making up the deficit if the county decides not to participate.”

The Council did approve the plan to move on to the Application Review Committee next week.

A final vote on this project will happen at the earliest in December.