Chattanooga’s City Council on Dec. 2 approved an amended economic impact plan (EIP) for the Northgate Mall infrastructure project in Hixson, voting to reduce the project estimate in section 7 from $9.2 million to $8.7 million based on an independent third‑party review.

The measure, presented by the Department of Economic Development, covers infrastructure work tied to redevelopment of the Northgate Mall area and includes stormwater, sewer and wastewater components and a water‑line replacement that currently is owned by the Hixson Utility District. Sherry Allen, senior adviser for economic and workforce development, told the council the utility district does not have capital funding to replace the water lines and said it would not participate financially, although it is willing to accept lines dedicated to district standards once built.

Supporters said the lower figure reflects realistic financing assumptions from a third‑party analysis and preserves the project’s viability. Councilwoman Burrows said the adjustment was intended to align the EIP with the reviewer’s findings; the council amended the EIP and then approved it as amended, and later approved a companion intergovernmental financial assistance agreement between the city and the Industrial Development Board to enable the financing structure.

Council members debated a separate proposed amendment that would have barred use of TIF increment to pay for the water lines unless the council later approved such use. Proponents of that language said it would encourage staff and the developer to pursue grant funding — notably a potential Appalachian Regional Commission (ARC) water infrastructure grant with a Dec. 5 pre‑application deadline — before tapping incremental tax revenues. Opponents said the full package, including water lines, is necessary to make the redevelopment financially feasible and argued Hixson residents have paid taxes and deserve investment in local infrastructure.

Sharita (economic development staff) told council that if the water lines remain in the project the city could apply for grant funding that typically flows to municipalities; if grant financing fails, the developer could return to request council approval to use increment for the water portion. Council ultimately withdrew the proposed restriction and instead approved the EIP with the $8.7 million estimate.

What happens next: The EIP approval authorizes the city to proceed with related actions that enable the Industrial Development Board to execute the development agreement and to pursue the grant opportunities staff identified. Councilmembers signaled plans for follow‑up oversight, including a resolution Councilman Davis said he would bring asking the Industrial Development Board to prioritize community‑preferred uses in the development agreement.

The council’s vote was voice‑recorded as "approved as amended." Staff and the developer will continue work on the development agreement and pursue potential outside grants that could reduce the city’s repayment obligations under the TIF structure.