A discussion about Hamilton County Schools potentially purchasing the former Sears and J.C. Penney stores at Northgate Mall at a Monday board meeting has drawn criticism for one school board member.
Some Hamilton County residents are calling board member Rhonda Thurman of District 1 out for what they call a racist and offensive comment about local developer and Islamic leader, Bassam Issa.
While board members debated the $8.9 million price tag for the properties, several expressed frustrations with a perceived price increase since Issa and his partner, John J. Woods, purchased the Sears property after the district expressed interest in it in April.
Thurman agreed with fellow board members Steve Highlander and Jenny Hill's concerns about "the economic times" and argued that there are likely to be more properties available as businesses close as a result of the COVID-19 pandemic.
"I have a problem with somebody just going around and buying up a lot of buildings, just because they can get funding from other sources from outside our country, and then holding them hostage so people like us can come and they can double price them," Thurman said during the meeting.
Thurman did not respond to calls from the Times Free Press as of Tuesday afternoon.
Woods purchased the J.C. Penney store in 2019 in partnership with Issa and then partnered with him and Chattanooga-based CBL Properties Inc. to purchase Sears. He called Thurman's comments unfortunate.
"The money came from me, not from another country. What a ridiculous comment," he said in an email Monday night.
On Tuesday, Woods also questioned not only Thurman's comment but the board's entire discussion about the proposal Monday.
"[Bassam] and I went and saw every board member and explained the deal," Woods told the Times Free Press on Tuesday. "There's no foreign money, I don't know what she's talking aboutto make that comment, and that goes out to the community, that's not accurate, that's not fair."
The money used to fund these projects, Issa said, is local money.
"I want to clarify that I have never used foreign money, and everything that current money, and all the money I do is American money, and my partner is John, he's American. And the other fact is that the banks we use aren't even national, we use local community money," he said.
Issa also noted that he and Woods will make about a 15% profit on one property and break even on the other - far less than the profit they would have made if they developed the property for commercial or residential purposes.
Staff photo by Tim Barber / Bassam Issa at the scene of a project at the former Firestone property adjacent to Northgate Mall.Several Hamilton County educators and community members have taken to social media since the meeting, calling out Thurman for her comment. They argue that her allusion to foreign investors and holding property hostage is racist and Islamophobic, especially when aimed at Issa, a well-known and longtime Chattanoogan.
"Be mad that he bought the property to raise the price, but to say he is getting money from another country and holding the building hostage is pure racism when talking about someone of Middle Eastern descent," Heather Modrow, an outspoken teacher and member of Hamilton County United - a local teacher advocacy group - posted on Facebook. "How offensive indeed. She should apologize to all our black and brown students and their families. Instead she will say 'that's not what I meant.' If that's really true, then she needs to look at her own biases."
Hamilton County United posted its own statement on Facebook as well Tuesday. The group is also supporting much of candidate Stephen Vickers' campaign against Thurman for the District 1 school board seat on the August ballot.
"Our country is too divided already. Our elected officials should not add to that division on the best of days, and certainly not now. Ms. Thurman owes both Mr. Issa and our community an apology," the statement read.
Several local faith leaders who have worked with Issa over the years, specifically after the July 16 terrorist attack in Chattanooga when Issa served as a bridge between Chattanooga's Muslims and the rest of the community, also weighed in.
Brandon Gilvin, senior minister at First Christian Church, accused Thurman of perpetuating Islamophobic tropes. Tricia Dillon Thomas, co-pastor at Renaissance Presbyterian Church, said school board members should be held accountable for both their actions and their words.
"These are men and women, leaders of our community, who are responsible for shaping the educational system for our children," Thomas said. "When Rhonda Thurman is willing to make such a racist and xenophobic statement about a Muslim leader publicly, a leader who tirelessly works for this community, I question if she is indeed working for the best interest of all children."
Board member Steve Highlander, of District 9, said during the meeting that the Sears property was originally available to the district for $3.5 to 4 million and accused Issa and Woods of doubling the price by offering it to the district for $6.5 million. Woods said that he and Issa have about $7.5 million already invested in both properties after adding HVAC systems and negotiating deed restrictions on the property.
"Its just unnecessary," Woods said of Thurman's comment. "Its not true and it's inappropriate and it's just unfortunate we have someone on the school board like that. We need more forward thinkers. .Mr. Issa is a very professional man and is a great man who has done a lot for this community. He has spent a lot of time and money as a developer revitalizing other empty buildings that would just be sitting vacant right now."
Issa and Woods together met with every school board member and several Hamilton County commissioners over the past few months to discuss a potential lease-to-own deal on the properties, but eventually settled on an outright purchase.
The district hopes to renovate the Sears building into a new home for Chattanooga School for the Liberal Arts.
As for Issa, he also said he did not want to respond to Thurman's comment with more negativity.
"She is entitled to her opinion. It's useless to get into arguments and miss the main point, which is these kids having a great school," he told the Times Free Press. "We believe it would be a shame that we as Chattanoogans squabble and try to make points one way or another and lose our opportunity to have new schools for students of our families here in Chattanooga. It's up to [the board]. They're driving the wheel, whatever they want, we are at their service."
"I've always put my money in Chattanooga. I'm a Chattanooga man, and I believe in investing my money in my community," Issa added.
Contact Meghan Mangrum at mmangrum@timesfreepress.com or 423-757-6592. Follow her on Twitter @memangrum.