The developers of one of the largest new industrial parks in Chattanooga are seeking a change to their tax incentive agreement with the city and county. The move occurs amid a broader downturn in the logistics industry.
In 2022, officials broke ground on the North River Commerce Center, 4546 N. Access Road, with the goal of constructing 800,000 square feet of high-quality industrial space at the former DuPont site at a cost of about $100 million.
The project received a special tax district from the city and county that enables the developers to reimburse the cost of public infrastructure at the site using increased property tax revenue generated by upgrades to the land.
Charita Allen, the city’s senior adviser for economic and workforce development, said in an email the reimbursements are capped at $8.75 million for infrastructure with another $1.15 million available for associated capitalized interest, fees and financing costs. The public infrastructure work includes road and right of way improvements, signaling, utilities and sewer infrastructure.
Winston Brooks, Chattanooga’s director of economic development, told a city board Monday the changes would give developers five more years to complete the full build-out of the project, extending the deadline to Dec. 31, 2031. That would prevent a premature clawback of tax money.