The Chattanooga Lookouts have finalized a $17 million loan that’s part of the financing package for the planned new South Broad ballpark, officials said Friday.
The proceeds of the private loan involving a consortium of local financial institutions will be used by the Chattanooga-Hamilton County Sports Authority to help construct the publicly owned stadium.
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The $115 million project is now fully funded, with the ballpark to replace aging AT&T Field downtown, officials said.
FirstBank led the syndicate of local financial institutions on the Lookouts loan, which includes Tennessee Valley Federal Credit Union, SmartBank, Citizens Tri-County Bank and WesBanco Bank.
Lookouts managing owner Jason Freier said the financial institutions believe in the project and want to make it happen.
(READ MORE: Lookouts stadium groundbreaking draws hundreds)
“Now it’s time to build something remarkable that will revitalize the South Broad District and benefit the entire region,” he said in a statement.
Jim McKenzie, market president for FirstBank, said the project is a catalyst for transforming the dilapidated foundry buildings in the district where the facility will sit.
“Much like the Tennessee Aquarium did for the riverfront area of downtown Chattanooga 32 years ago, this baseball stadium will radically transform a tired, old, visually unappealing site into a fresh, vibrant and visually appealing area,” he said in the statement.
In October, $80 million in taxable and tax-exempt bonds were sold to fund a major piece of the proposed ballpark. According to plans, the bonds will be paid back mostly by new city and county tax revenue generated by stadium development.
The Lookouts also are contributing $3 million in non-reimbursable cash for construction, and the club will pay rent of at least $1 million per year for 30 years.
In addition, the team will pay operating and maintenance costs for 30 years and cost overruns to construct the stadium. Plans are for an April 2026 opening for the multi-use stadium.
Chattanooga Mayor Tim Kelly and other officials said the ballpark is the linchpin of a potential $1 billion in new development in and around the old 140-acre U.S. Pipe/Wheland Foundry tract.
— Compiled by Mike Pare