Tennessee Comptroller Jason Mumpower states that the plans to build the new South Broad District in Chattanooga, that include a new stadium for the Lookouts, are in the best interest of the state if two conditions are met.
Mumpower states that the final contract with the Lookouts will need to include an unconditional commitment to make annual lease payments of at least one million dollars for 30 consecutive years. Any excess tax revenues will only be used for eligible purposes. If both those conditions are met, then Mumpower will issue a final determination.
The Chattanooga City Council approved the deal in August, creating a stadium authority and allowing that authority to bond up to $80 million at a rate up to 6% for 30 years for the projected $79.5 million project.
In August, it was reported that the city and county will each reportedly contribute more than $1 million to the deal initially. The bonds are then expected to be repaid through $49.8 million worth of property taxes from the site, $17.5 million worth of lease payments ($1 million per year), an estimated $5 million in sales taxes retained by the team after it was approved by Tennessee lawmakers and an estimated $3 million in parking fees.
