City council passes Tax Increment Financing District for Harriet Tubman Site
Development in East Chattanooga took a step forward Tuesday night as the Chattanooga City Council passed a resolution that would allow tax dollars to be used for infrastructure needs on the rest of the old Harriet Tubman Site.
It’s called a Tax Increment Financing District, or a TIF.
The TIF District covers 20 acres while the Nippon Paint Plant will occupy the other 29 on the site.
And city leaders say fixing infrastructure in the area is the right call.
"It's….we want to see additional redevelopment and economic development in East Chattanooga,” Economic Officer Jermaine Freeman said.
Nippon Paint will invest $61-million dollars at East Chattanooga and pay more than $11-million in taxes over the next 20 years.
Four million dollars of that would go to improvements on the rest of the site like fixing street lights, landscaping, roads and sidewalks.
Economic Officer Jermaine Freeman says the infrastructure improvements will make the rest of the site more attractive to outside businesses and other developers, which would benefit residents in the area.
"This could allow for a nice smooth transition between the Nippon Paint Facility and what other additional development comes and the rest of the community,” Freeman said.
And city leaders hope to keep East Chattanooga on the rise.
"A sort of catalytic project that will sort of stimulate a lot of economic development and hope to see additional development,” Freeman said.
The TIF District still has to be approved by the Hamilton County Commission and the state of Tennessee.
The commission will vote on December 18th.