Staff photo by Mike Pare / Workers are putting up a four-story TownPlace Suites by Marriott hotel in East Ridge on Frawley Road.

East Ridge's latest building project, a TownPlace Suites by Marriott, officially launched on Wednesday as the city sees a surge in new development with more in the pipeline.

The $12.5 million, 88-room hotel by locally based Dynamic Group is expected to open in the first half of 2022. It's a project in which developers took advantage of the city's Border Region Retail Development District state sales tax incentive.

"It's another example," said Mayor Brian Williams at the 730 Frawley Road site where the four-story hotel is underway close to Camp Jordan and Interstate 75.

Williams listed a litany of projects at least partly fueled by the state sales tax incentive. Within a designated district in the city, a portion of the state sales taxes collected may be used to pay for infrastructure and other building costs for projects such as the TownPlace Suites.

The mayor mentioned a pair of new restaurants which recently opened or are soon coming, DosBros and Dairy Queen, at the nearby Jordan Crossing mixed-used development. Already, Bass Pro Shops, Topgolf and a Hampton Inn are anchors in Jordan Crossing.

But retailers large and small, hotels, attractions and other businesses are landing in and eyeing East Ridge as well.

Roshan Amin, the Dynamic Group's president and chief executive, cited East Ridge's state sales tax break as helping with his project.

"We've got a development agreement with the city for incentives," said Amin, whose group also is planning new hotels in Chattanooga and Hixson.

In addition to the East Ridge hotel, Dynamic Group is in discussions with restaurant companies to fill a couple a sites adjacent to the new TownPlace Suites, he said.

"We ended up with two restaurant pads we'll be able to sell or lease," Amin said. "We're talking to a few companies."

Williams also talked about a new $10 million project under construction in East Ridge to house the Southern Honda Powersports dealership.

Chattanooga businessman Tim Kelly is shifting that business from its current Workman Road site to the new location on Ringgold Road. Kelly said the new business is not far from I-75 and will make it easier for customers.

"It should allow us to have a much more retail friendly location," said Kelly, a Chattanooga mayoral candidate who also tapped the Border Region incentive.

Just last month, Pandora's European Motorsports announced it's moving from its Chattanooga location to East Ridge.

Pandora's, which sells motorcycles from brands such as BMW, Ducati, and Triumph, currently is located on Highway 58 near Highway 153 and prepping to move into larger space at 5337 Ringgold Road across from Southern Honda. It, too, is benefiting from the incentive.

East Ridge's mayor also brought up plans by Chattanooga Red Wolves owner Bob Martino, who is proposing the largest new array of development ever in the city.

Martino, who opened the soccer club's $6 million stadium last year, has unveiled plans for 400 apartment and condominium units, 375 hotel rooms, and 475,000 square feet of commercial space — worth some $125 million if all built out.

The project is projected to create up to 1,200 jobs. East Ridge already has approved incentives for Martino's plans.

Contact Mike Pare at Follow him on Twitter @MikePareTFP.