A community benefits agreement covering issues such as hiring, affordable housing and public transportation has been reached related to the building of the new Chattanooga Lookouts stadium.
The agreement, a first in the city, was hammered out by The Bethlehem Center, the Lookouts, the owners of the old foundry land where the ballpark will go in the South Broad District and the site’s master developer, officials said Tuesday.
Chattanooga Mayor Tim Kelly said the city wants all to benefit from the city’s progress.
“While city government legally could not be part of this agreement, we never lost faith that it would get done,” he said in a statement. “We have always known that we can do big, positive things in Chattanooga when we work together.”
The agreement is aimed at helping guarantee specific goals seen as important to the community as the $115 million stadium is built with a planned opening in early 2026. Discussions about crafting such an agreement were raised some two years ago after the facility was proposed.
Officials said more than $1 billion in new development is envisioned in and around the South Broad District.
(READ MORE: Coalition wants benefits from stadium deal)
Reginald F. Smith II, executive director of The Bethlehem Center, said the agreement is a collaborative effort on the part of groups to ensure the stadium project not only enhances the community’s sports profile but enriches lives of South Chattanooga residents.
“We are committed to leveraging this agreement to foster economic opportunity and community well-being in our neighborhood,” he said in a news release.
Andy Stone, a partner in the company that owns the 140-acre U.S. Pipe/Wheland Foundry site, said in a statement it’s fitting the property that was an economic engine for South Chattanooga for a century will again spur revitalization of the area.
The agreement also covers topics ranging from vendor selection to the Riverwalk, traffic, building efficiency and environmental standards, and the potential for a new childcare facility in the area, officials said.
The Bethlehem Center, a nonprofit serving children and families in the South Chattanooga area, earlier this year took the point on negotiations for a coalition of local organizations concerning the agreement.
That was after the nonprofit advocacy group CALEB said a committee formed to negotiate with the foundry landowners and the baseball team broke off talks.
The group said then it was not able to get “meaningful safeguards” for the community on contracting for the stadium construction and the larger development on the site.
The minor league team is planning to move to the new stadium from AT&T Field downtown.
(READ MORE: New Lookouts stadium proposed)
Lookouts President Rich Mozingo said in a statement the team has a long history of working directly with its neighbors.
He said the aim is to “ensure the people we employ, vendors we do business with and fans we entertain benefit as much as possible from our continued presence in this city.”
Jim Irwin, president of master developer New City Properties, said in the release “it will be incredibly fun and meaningful to begin the redevelopment of the foundry site with the entire Chattanooga community in mind.”
According to plans for the ballpark, $80 million in bonds will be issued by the Chattanooga-Hamilton County Sports Authority and paid back mostly by new city and county tax revenue generated by the stadium development.
Also, there will be a $26 million private loan obtained by the team and landowner, paid back with new city property tax revenue in a 470-acre tax district around the stadium, but not with county revenue.
In addition, there will be $5 million in additional sports authority debt, also repaid from the city’s property tax revenue and potentially hotel motel taxes or local option sales taxes.
Also, there’s a $3 million up front contribution from the Lookouts, at least $1 million in annual rent from the team, along with $1 million interest earnings on the $80 million in bonds.
Contact Mike Pare at mpare@timesfreepress.com or 423-757-6318.