THE CHOO CHOO DEAL
Under the proposed PILOT for the Choo Choo, general county property taxes for the hotel will be frozen for 12 years, but the hotel will still pay the education portion of the tax. The Choo Choo pays about $280,000 in property taxes now, according to Choo Choo partner and former Chattanooga Mayor Jon Kinsey. At the end of 12 years, property tax bills will be gradually phased in: 20 percent in the first year, 40 percent the second, and so on.
With city and county officials soon to take up the much-delayed housing tax-break deal for the Chattanooga Choo Choo, so-called housing PILOTs have brought together some unlikely allies.
The Chattanooga Tea Party and Chattanooga Organized for Action are separately calling for city and county officials to rethink payment-in-lieu-of-tax agreements for private housing developments in the city, which are administered by the River City Co.
The Tea Party and COA would like to see all pending PILOTs halted and the program evaluated, revised or scrapped.
The Chattanooga City Council will hear a resolution Tuesday on a proposed PILOT agreement for the Choo Choo. And the Hamilton County Commission will evaluate the overall PILOT program in a committee meeting Thursday.
