Despite concerns surrounding a requirement from the Chattanooga City Council to build a career and technical school downtown, the Hamilton County Commission on Wednesday unanimously approved a special tax zone for The Bend, a potential $2.3 billion development on the city’s Westside.
Tuesday, the City Council unanimously approved the same tax zone. As part of that vote, the council approved six amendments, one of which stipulates the city pull back up to $32 million in city tax revenue from education funding in the agreement if the Hamilton County Board of Education does not use the funding to build a career and technical school.
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Prior to Wednesday’s vote, the commissioners discussed the last-minute addition by the City Council with some criticism.
“The school board does have the authority to decide what is done,” Commissioner Steve Highlander, R-Ooltewah, said during the meeting. “It’s almost like the City Council’s offering a bribe. If it’s done our way, you get the money. If it’s not done our way, you don’t.”
Jermaine Freeman, interim chief of staff for Chattanooga Mayor Tim Kelly, was at the commission meeting Wednesday and told commissioners the amendment should not be considered a bribe.
“What needs to happen with the school is up to the county government, not the city,” Freeman said. “The City Council’s concern was if this school, however it is defined, is not built, the city would be protected and have a chance to get the money back that it’s putting in. Because from our perspective, the increment that we’re talking about is up to $32 million of city money.”
Upon hearing from the city, Highlander backed away from calling the move a bribe but still expressed concern.
“‘Coerce’ might be a better term,” Highlander said. “But the fact that they designated how that school was to be built is a little bit bothersome with me.”
When taking the roll call for the vote, Highlander initially passed on his vote, but when the vote came back to him, Highlander voted to approve the plan.
Commissioner David Sharpe, D-Red Bank, questioned if the city’s stipulation is legal.
“I think that there’s probably some legal questions as to whether or not we can tie public funds to specific projects in public education,” Sharpe said. “That’s the role of the school board. I have some legal questions about that. I mean, I want this resolution to pass. I’m going to vote for it, but I want to make sure that we stay within the confines of our role, responsibilities and, frankly, the law.”
Sharpe offered an amendment to the county’s resolution that would not tie the school system to building a career center but more broadly some type of school project downtown.
“My intention was simply to offer an amendment today to change any language stating ‘career and technical school’ to ‘downtown county school program,'” Sharpe said. “Which could include a technical school but does not cuff us to something that we don’t even know (that) the school system thinks that we really need to do.”
However, upon learning there was no such language to amend in the resolution itself, Sharpe withdrew his motion.
The language referring to a downtown career and technical school is in the special tax zone agreement — formally called the economic impact plan — and not the resolution.
Changing the agreement could potentially delay the approval process, Freeman said.
“If you wanted to alter the language in the economic impact plan, that would actually require going back — to potentially going back — to the Industrial Development Board to trigger a new public hearing and then new votes coming before the City Council and the County Commission,” Freeman said.
Hamilton County Deputy Mayor Cory Gearrin said during the meeting the City Council’s amendment does not force the county to build a career and technical school.
“The city of Chattanooga has made a commitment to an investment towards a vision. It’s their prerogative to get to decide what to do with their revenues,” Gearrin said. “Should the project not happen, the school board and this body will still move forward in a way that they see best fit, but those funds will just flow back.”
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Commissioner Ken Smith, R-Hixson, said the intent from the City Council was to incentivize the county to build a career and technical school. Smith also sits on the City Council as a representative of Hixson.
“The intent, as I understood it — and my intent, was to incentivize a career and technical school, which has been a conversation I’ve heard from both mayors, talking about for well over a year that we need a career and technical school in Hamilton County,” Smith said.
Gearrin said in an interview after the County Commission meeting that County Mayor Weston Wamp’s office is excited to work with the city in bringing a career center downtown.
“The mayor’s been outspoken about his support for a career and technical (school), and the community’s rallied around that,” Gearrin said. “We’re looking for partners all the time. We’re excited for the city of Chattanooga to be leaning in and being a part of that conversation.”
The next step for The Bend is for the plan to be considered by the city’s Industrial Development Board.
The Bend is part of a larger economic plan for the area called One Westside. That plan includes Westside Evolves, a redevelopment project that would demolish two public housing complexes and replace them with mixed-income housing.
Along with funding toward education and infrastructure, part of the tax revenue in the special zone agreement would go towards affordable housing at Westside Evolves.
Contact Ben Sessoms at bsessoms@timesfreepress.com or 423-757-6354.