TIF District to upgrade Northgate Mall infrastructure proposed

CHATTANOOGA, Tenn. (WDEF)- When it was developed in 1968, Northgate Mall was the economic center of Hixson.

One customer, Doug McDougal, said he was around for the mall’s early days, working in various stores in the 1970s.

He described, “We had locals that came out here, and opened their stores, even from the other side of the river, we had other folks that came in, and it was really a packed mall. We even had a bank.”

However, the owners of the mall, CBL Properties, admit it’s had better days, as numerous stores inside of the mall are currently vacant, as roughly 20 stores are open inside of the mall, including the lone anchor store Belk.

John Meshel of CBL Properties said, “The mall in its current format is not sustainable, there’s where we are at today, it’s a failing mall. It does not work as an enclosed mall.”

CBL says that tax revenues from the mall have fallen by half over the past 7 years, in large part due to a failing private sewer system privately built for the mall in the 1960s.

That’s why they are asking the city to create a tax increment financing district, where a large portion of the sales tax revenue generated from mall properties would go to overhauling that infrastructure.

The project to replace the sewer system is expected to cost $15 million, with CBL fronting that cost.

The TIF District will have to be approved by multiple bodies.

Cherita Allen of Chattanooga’s economic development office said, “If we ever wanted to do for instance a town center format, or you wanted to recruit a hotel, or you were looking to bring in a multi family project. Those would not be able to happen with this current infrastructure. It does not support it because it is outdated.”

Joseph Waller, who has owned the Funkey Munkey Market inside of Northgate for four years, says that new infrastructure is desperately needed.

Waller said, “In the four years I’ve been here they’ve had a lot of issues with utilities, especially with the water. It’s old and collapsing and it causes a lot of problems, so anything they can do to improve that situation, we’d be grateful.”

However, he adds that he does see some light at the end of the tunnel as he says his store is doing better.

Waller said, “In the last four years I’ve seen (the foot traffic) increase, and the economy is a lot better. It’s a lot stronger, people are a little more comfortable with spending their money, and we have definitely seen an increase in our sales.”

Meanwhile, the popular fast food chain Culver’s opened their first Chattanooga location outside of the mall this week.

It is located adjacent to the under construction BJ’s Wholesale store, which is due to open in the coming months.