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    South Broad District Summary - City Council 2022.06.30

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    Dan Lehr
    The document summarizes plans to revitalize the South Broad District in Chattanooga through a catalytic project at the U.S. Pipe and Wheland Foundry site, including the construction of a new multi-purpose stadium that would be leased to the minor league baseball team Lookouts. The stadium is intended to spur over $350 million in initial development and up to $1 billion over the long term. Financing for the stadium would come primarily from revenues generated by the project itself, including property taxes, sales taxes, and payments from the Lookouts through their lease. The goal is to redevelop a long-vacant brownfield in a manner that revitalizes the western gateway to Chattanooga without relying

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    South Broad District Summary - City Council 2022.06.30

    Uploaded by

    Dan Lehr
    11K views5 pages
    The document summarizes plans to revitalize the South Broad District in Chattanooga through a catalytic project at the U.S. Pipe and Wheland Foundry site, including the construction of a new multi-purpose stadium that would be leased to the minor league baseball team Lookouts. The stadium is intended to spur over $350 million in initial development and up to $1 billion over the long term. Financing for the stadium would come primarily from revenues generated by the project itself, including property taxes, sales taxes, and payments from the Lookouts through their lease. The goal is to redevelop a long-vacant brownfield in a manner that revitalizes the western gateway to Chattanooga without relying

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    The document summarizes plans to revitalize the South Broad District in Chattanooga through a catalytic project at the U.S. Pipe and Wheland Foundry site, including the construction of a new multi-purpose stadium that would be leased to the minor league baseball team Lookouts. The stadium is intended to spur over $350 million in initial development and up to $1 billion over the long term. Financing for the stadium would come primarily from revenues generated by the project itself, including property taxes, sales taxes, and payments from the Lookouts through their lease. The goal is to redevelop a long-vacant brownfield in a manner that revitalizes the western gateway to Chattanooga without relying

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    11K views5 pages

    South Broad District Summary - City Council 2022.06.30

    Uploaded by

    Dan Lehr
    The document summarizes plans to revitalize the South Broad District in Chattanooga through a catalytic project at the U.S. Pipe and Wheland Foundry site, including the construction of a new multi-purpose stadium that would be leased to the minor league baseball team Lookouts. The stadium is intended to spur over $350 million in initial development and up to $1 billion over the long term. Financing for the stadium would come primarily from revenues generated by the project itself, including property taxes, sales taxes, and payments from the Lookouts through their lease. The goal is to redevelop a long-vacant brownfield in a manner that revitalizes the western gateway to Chattanooga without relying

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 5

    South Broad District Summary

    Revitalize. Renew. Reinvest

    South Broad Study

    The process for revitalizing the South Broad District began in 2003 and continued under several
    City and County administrations. In 2017, the Chattanooga Design Studio began a planning
    study of the South Broad District, which includes more than 400 acres just south of Downtown
    Chattanooga. The study area included the U.S. Pipe and Wheland Foundry site, South Broad
    Street, Southside Gardens, Market Street, and the area surrounding The Howard School.

    Following are just a few of the implementation recommendations included in the South Broad
    District Study (January 29, 2018):

    ● Explore the creation of a TIF district


    ● Support The Howard School
    ● Pursue catalytic projects with the U.S. Pipe/Wheland Foundry Site identified as an ideal
    location for catalytic projects.

    City Council adopted the South Broad District Plan by Resolution on April 10, 2018.

    Now is the time to revitalize the western gateway to our city.

    1
    South Broad District (Approximate TIF Boundaries)

    Northern Boundary - Interstate 24/Highway 27


    Western Boundary - Interstate 24
    Southern Boundary - Chattanooga Creek
    Eastern Boundary - Chattanooga Creek/Property Line behind The Howard School

    Catalyst Project - U.S. Pipe and Wheland Foundry Site

    ● New publicly owned stadium, which will be a multi-purpose entertainment venue


    ● Lookouts would be the anchor tenant
    ● Creation of a sports/entertainment venue was referenced in the South Broad District
    Plan in 2018.
    ● 19 stadiums with minor league baseball have been built since 2002
    ○ 8 stadiums were 100% publicly funded
    ○ 14 stadiums were 80%+ publicly funded
    ○ 1 stadium was built without public funds, 100% funded by a philanthropist
    ● Stadium is a catalyst for the remaining 120 acres on the site around the stadium
    ● Core Development is already planning over $160 million for multifamily housing
    ● Property owner has engaged a world-renowned master developer to guide the
    development of the site, to leverage up to $1 billion of new development
    ○ Jim Irwin & New City Properties
    ○ Designer and master developer of Atlanta’s Ponce City market
    ○ Experience with brownfields and stadiums as catalyst for development

    2
    Rendering - Adaptive Reuse of Buildings for the Stadium

    3
    Financing the Stadium

    ● Special thank you to our State legislative delegation - state/local sales tax revenues from
    all stadium events can be captured to pay for the stadium
    ● Creation of TIF district to capture new property taxes that do not exist today
    ● Creation of Sports Authority jointly formed by City and County
    ● Competitive lease and parking fee structure with the Lookouts
    ● Sports Authority will issue 30 year bonds with debt service paid from the following:
    ○ TIF property tax increment
    ○ Sales taxes from stadium activities
    ○ Stadium lease
    ○ Net parking revenues
    ○ Local support
    ● The Lookouts lease starts at $1 million per year with an escalator, higher than any other
    team in minor league baseball
    ○ 1.5 times higher than the rent paid by the minor league team in Nashville
    ○ 2.75 times higher than the rent paid by the Tennessee Titans for Nissan Stadium
    ● The Lookouts will be responsible for maintaining the stadium per the lease agreement
    ○ At least $1.5 million per year for 30 years, or $45 million
    ● Donation of 8-10 acres of private land to Sports Authority, valued at $10 million+
    ● Financing plan conservatively assuming only $350 million of development around the
    stadium ($160 million already planned:

    Stadium Financing Plan:


    Stadium Construction Costs $ 72,000,000
    Capitalized Interest $ 6,863,009
    Bond Issuance Costs $ 604,657
    Bond Proceeds Required $ 79,467,666

    Sources for Bond Repayment:


    Incremental Property Taxes $ 49,790,904 63%
    Stadium Lease $ 17,500,934 22%
    State Sales Taxes Generated in Stadium $ 5,095,349 6%
    Net Parking Revenues $ 2,988,600 4%
    City of Chattanooga Debt Service $ 1,524,823 2%
    Hamilton County Debt Service $ 1,524,823 2%
    Local Sales Taxes Generated in Stadium $ 1,042,234 1%
    Total Sources for Payment of Bond Debt $ 79,467,666 100%
    Note: Amounts expressed in today’s dollars using a discount rate equal to the bond rate.

    4
    Key Points

    ● This process started in 2003

    ● South Broad District Plan adopted by Council in 2018

    ● The time is now!

    ● This is not about the stadium, the stadium is simply the catalyst for developing a blighted
    brownfield that has long sat vacant, and revitalizing the western gateway to Chattanooga

    ● Publicly owned stadium

    ● 96% of the funding to construct the stadium comes from the project itself through
    investment from the private developers and payments from/generated by the Lookouts

    ● $350 million of development generates $40 million in new revenues for schools over
    30 years, new revenues provided by new growth, not new taxes

    ● The Lookouts are paying for 22% of the cost of the stadium through their lease, we are
    not giving anything to the lookouts…they have to pay to use the stadium and their lease
    funds nearly a quarter of the cost of the stadium

    ● The Lookouts lease payment will be the highest in all of minor league baseball, and
    almost 3 times higher than what the TN Titans pay to lease Nissan Stadium
    (Note - Nissan stadium got $500 million from the State)

    ● The Lookouts will pay at least $45 million over 30 years for maintenance of the stadium

    ● Land valued at more than $10 million will be donated to the Sports Authority

    ● Development begets development. Within 5-7 years, the project is expected to generate
    more revenue than necessary to pay down the bonds used for stadium construction,
    allowing surplus TIF funds to be directed to infrastructure needs and to other projects in
    the South Broad District

    ● The development goals of $350 million for phase 1 and $1 billion for full build out are
    very achievable.
    ○ Fort Wayne, IN stadium site - development has reached $1 billion in 13 years
    ○ Columbia, SC stadium site - development has reached $650 million in 6 years
    since 2016 (including during the pandemic) and is expected to reach $1.2 billion
    within the next 5 years. This site is similar to the Chattanooga site

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