Additional sales tax among full Northgate Mall economic impact proposal

CHATTANOOGA, Tenn. (WDEF)- The final plan to fix infrastructure issues at Northgate Mall was unveiled Tuesday.

This plan however, raised some questions.

The proposal presented on Tuesday was a two part plan.

The first part was the tax increment financing portion.

It would use a portion of sales tax revenue generated by new projects on the mall’s campus to replace its aging sewer system, that is privately owned by mall owner CBL.

However, according to an economic study done by a third party source, this would only generate a little over three million dollars on a nearly nine million dollar project.

To fund the rest of it, the city is proposing a local option sales tax of 1.125% to make up that difference. 

It would apply to most businesses on Northgate Loop.

However, most of the city’s base sales tax revenue would remain frozen.

Councilman Chip Henderson said, “For 20 years, that’s a pretty long time to have your base frozen.”

Additionally, the question was raised what control the city would have over future development at the mall, given Hixson community members say they desire for a town square akin to Cambridge Square in Ooltewah.

Council Chairwoman Jenny Hill said, “What is their vision? Because what I don’t want is for us to move forward with an infrastructure deal, and us be disappointed with what comes out of the ground.”

CBL has stated their ideal version for the future of the mall would be an open air town center.

However, some question their intentions.

Councilman Cody Harvey said, “If the city of Chattanooga is going to potentially invest $14.6 million dollars, I want to make sure we don’t get four multi family buildings and a strip club.”

Hill added, “Frankly, I find the vision that I have heard from the people of Hixson to be much more enjoyable, livable, and walkable than the vision I have heard from the applicant. I find their vision to be practical.”

Several council members insisted on more community input in the process.

Councilman Jeff Davis, who represents Hixson, said, “It only seems right that the city gets involved now to fix and revitalize this infrastructure to make sure this area doesn’t become run down or an eyesore so it can again be the center of the Hixson community.”

The city council will consider and vote on this plan at their next meeting on December 2.