WBV

Call to Order & Pledge of Allegiance (2:14)

Meeting called to order.
Pledge of Allegiance recited.

II. Invocation (2:49)

Councilwoman Coonrod delivered the invocation.

III. Meeting Minutes (3:54)

Minutes from the previous meeting approved with no objections.

IV. Announcements and Agenda Discussion (4:01)

Councilman Smith appointed as chair of the Budget and Finance Committee.
Budget and Finance Committee meeting scheduled for January 14th.
Timeline for filling the vacant District 6 seat:
- Notice to the newspaper on January 8th.
- Resumes and letters of interest accepted until January 21st at noon.
- Resolution to declare the seat vacant on January 14th.
- Interviews on January 28th at 3:30 PM.
- Vote and swearing-in on January 28th.

V. First Reading Ordinances (6:29)

Council Office Ordinance:
- Amending the city code regarding threats of mass violence on city-owned property.
- Discussion on clarifying the reporting procedure:
  - Councilwoman Hill expressed concerns about the requirement to contact the mayor or department head in addition to law enforcement.
  - Councilwoman Coonrod and other council members emphasized the importance of clear and simple instructions for the public.
  - Consensus reached to amend the ordinance to require reporting the threat to emergency personnel.
  - Councilwoman Coonrod requested a meeting with all community center managers to discuss the ordinance and develop policies and procedures.
  - Chief Freeman agreed to schedule the meeting.
- Amended ordinance language read by the City Attorney.
- Councilwoman Dooley stated her intention to abstain from voting on this item.

VI. Public Works & Wastewater Items (29:53)

Public Works Ordinance:
- Mandatory referral in District 2 (300 block of Ann Street) deferred for two weeks due to ongoing conversations about conservation easements.

VII. Resolutions (30:22)

Council Office Resolutions:
- Resolution to honor Dr. Burse by renaming the Family Justice Center in her memory.
Economic Development Resolution: (Discussed in detail later in the Economic Development Committee meeting)
Finance Resolutions:
Mayor's Office Resolutions:
- Several board appointments.
Parks & Public Works Resolutions:
Wastewater Resolution:
Office of Community Health Resolution:
- Item W withdrawn due to the Office of Community Health not receiving the anticipated grant.
- Item X confirmed as still active, as the grant was received.
Councilman Leford's Question on Finance Item J:
- Question about the 5th-year rebate computation and whether this is a common occurrence.
- Weston Wamp, City Finance Officer, explained that it is uncommon and related to the 2019 bonds and the impact of the COVID-19 pandemic on spending timelines.
- Discussion about the return on investment and the tax-exempt status of the bonds.

VIII. Review of Proposed Agenda for January 14th (34:34)

Ordinances on first reading this week will move to final reading next week.
Several planning ordinances will be discussed in the Planning and Zoning Committee meeting.
Resolution under Economic Development to be discussed in the Economic Development Committee meeting.
Finance items reviewed.
Future Considerations:
- Ordinance to amend the operating and capital improvements budget (January 28th, date flexible).
- Budget and Finance Committee meeting and public hearing to precede the vote.

IX. Committee Meetings (36:38)

Economic Development Committee
Parks and Public Works Committee
Planning and Zoning Committee
Attorney-client privilege meeting to be held during the recess.

X. Economic Development Committee Meeting (37:04)

Presentation by Sharita Allen, Senior Advisor for Economic Development:
- Recommendations for adopting formal pilot policies.
- Goals:
  - Better stewardship of public resources.
  - Clear and predictable processes.
  - Improved transparency.
  - Increased competitiveness.
  - Growth of jobs and investment.
- Alignment with the goals of the Industrial Development Board (IDB).
- Recommendation for delegation of certain pilots to the IDB.
- Key elements of the proposed policies:
  - Holding taxes associated with schools harmless.
  - Codifying the inclusion of an economic development fee.
  - Outlining the reporting process.
  - Implementing conflict of interest requirements.
  - Requiring an economic impact analysis.
  - Protecting stormwater fees.
  - Instituting a public hearing.
  - Requiring an affidavit stating the "but for" necessity of the pilot.
- Defining eligible projects and minimum thresholds:
  - 100 full-time jobs.
  - $20 million in capital investment.
  - Specific industry sectors.
  - Minimum wage of 80% of Hamilton County's average annual wage.
- Proposal to delegate authority to the IDB for certain pilots meeting specific criteria.
- Codifying standard percentages for pilots.
- Outlining the approval process and providing flexibility for projects not meeting the criteria.
- Evaluation Matrix:
  - Assigning points based on various factors (jobs, wages, capital investment, location, etc.).
  - Each point equals one year for the phase-in of the pilot.
  - Maximum incentive period of 10 years unless otherwise approved by the City Council.
  - Minimum requirement of 4 points for eligibility.
  - Average wage must be no less than 80% of Hamilton County's average annual wage.
  - Minimum capital investment requirements for different project types.
- Targeted Industries:
  - Aligning with the state of Tennessee's targeted industries and the Chattanooga Chamber of Commerce's Climbs plan.
  - Examples: Advanced manufacturing, electric vehicles, professional services, freight services, future technology, etc.
  - Transactional pilots meeting all eligibility criteria and falling within these targeted industries would be automatically delegated to the IDB.
Council Discussion and Questions:
- Councilwoman Dooley:
  - Questions about clawback language and the net financial and employment gains from the pilot program since its inception.
  - Request for annual reports on the status of active pilots.
- Councilman Henderson:
  - Expressed opposition to delegating taxing authority to the IDB.
  - Supported the annual reporting requirement.
- Vice Chair Hill:
  - Supported the policy and the use of a matrix but expressed concerns about delegating authority.
  - Emphasized the importance of transparency and getting the expectations right.
  - Requested further clarification on the difference between Area Median Income (AMI) and average annual wage, and how those numbers compare.
  - Requested definitions for vague terms in the evaluation matrix, such as "community benefit commitments" and "exceptional corporate stewardship."
  - Supported the idea of annual updates and presentations from pilot recipients.
- Councilman Leford:
  - Supported the matrix and the concept of transactional pilots.
  - Expressed concern about the length of the current process and suggested exploring ways to reduce the number of hearings and meetings required.
- Councilwoman Coonrod:
  - Emphasized the importance of prioritizing local hires.
  - Requested more information about the types of positions that would be created.
  - Highlighted the need for workforce development programs and partnerships with organizations like Project Return.
  - Raised concerns about the environmental impact and hiring individuals with background challenges.
Presentation by Adam Myers, VP of Economic Development at the Chattanooga Chamber, and Darcy McDougall, COO of Novonix:
- Overview of Novonix's proposed expansion at Enterprise South Industrial Park.
- Project details:
  - 182-acre site.
  - Up to 500 new jobs by March 31st, 2030.
  - Average annual wage of $61,000.
  - $1 billion estimated capital investment.
- Pilot request:
  - Standard declining pilot for 15 years.
  - Year 1: 100% abatement.
  - Years 2-3: Declining abatement percentages.
  - Years 4-15: 50% abatement.
  - Full school taxes paid.
  - 15% economic development fee payment each year.
  - $13.3 million in dedicated economic development fees

‍