No tax gains have been generated by The Bend’s development tax deal and Steam Logistics has produced far fewer jobs than promised, according to a presentation on tax incentive performance given to Chattanooga City Council on Tuesday.
The required Phase I infrastructure is under development at The Bend, a Westside riverfront development. About $15,000,000 has been spent by the developer, Charita Allen, the city’s senior adviser for economic and community development, told council members. Council member Ron Elliott of Missionary Ridge, who chairs the economic and community development committee, requested the presentation.
“No increment has been generated for payment” on the $115 million deal that is designed to use incremental tax money generated by the project to fund its infrastructure, according to Allen’s presentation.
The 20-year agreement dictates that the extra tax revenue generated by The Bend be used to help fund city and county expenses for education, affordable housing, sidewalks and a new fire station.
Under the tax deal approved by the Chattanooga City Council and Hamilton County Commission to support The Bend development, at least 10% of the new housing units are to be reserved as affordable units priced so that those making 80% or less of the median household income in Chattanooga can afford to live in the apartments without spending more than 30% of their income on rent.