WWW.EASTRIDGETN.GOV EAST RIDGE TN OUTCOMPETING GEORGIA NEIGHBORS WITH STRATEGIC MUNICIPAL POLICY BRIAN WILLIAMS, MAYOR
EAST RIDGE, TN OUTCOMPETING GE NEIGHBORS WITH S MUNICIPAL POLICY AT A GLANCE EAST RIDGE, TN WHAT: 2 2,034-resident border city with rare Border Region Retail Tourism Development District designation, generating significant economic growth through strategic tax incentives and sports tourism WHERE: Tennessee WEBSITE: www.eastridgetn.gov A DYNAMIC CITY REVERSING DECADES OF CROSS-BORDER RETAIL LOSS, GENERATING $800 MILLION IN SALES TAX GROWTH THROUGH INNOVATIVE DEVELOPMENT AGREEMENTS AND COMMUNITY-FOCUSED INFRASTRUCTURE INVESTMENTS. 1 CIVIL AND MUNICIPAL VOLUME 06, ISSUE 09
EORGIA STRATEGIC Y In a state where only three cities have achieved Border Region Retail Tourism Development District status, East Ridge is Tennessee’s most successful example of strategic economic transformation. The 8.3-square-mile city bordering Georgia has generated nearly $800 million in sales tax growth since receiving its designation in 2011, earning the 2024 Excellence in Economic Development Award from the Tennessee Municipal League. With a population of 22,034 and median household income of $55,988, East Ridge has reversed decades of sales tax leakage across state lines through innovative financial incentives and targeted business development. Mayor Brian Williams attributes the City’s turnaround to a focused approach.“Economic development is the driving force that has turned the City of East Ridge around. We’ve been able to achieve numerous new 2 CIVIL AND MUNICIPAL VOLUME 06, ISSUE 09
developments. We’re also getting some housing that’s getting built,” he explains.The transformation centers on the I-75 corridor, where major retailers like Bass Pro Shops and Topgolf anchor the Jordan Crossing shopping center, with expansion now reaching the middle and western portions of the city. Camp Jordan Park is the economic engine behind this growth. The 300-plus acre regional complex draws thousands of visitors, players, and families who stay in local hotels and spend money at area restaurants and stores.“We have a regional complex that draws thousands and thousands of visitors into our city, which is driving economic benefits from them spending money at our stores and restaurants,” Mayor Williams notes. Originally farmland purchased in 1973, the park now features 13 baseball/softball fields, 14 soccer fields, a 34,000-square-foot arena, amphitheater, and comprehensive recreational facilities that generate significant sports tourism revenue. BUILDING COMMUNITY THROUGH INFRASTRUCTURE East Ridge’s new animal shelter is a community catalyst that brings residents together around a shared purpose. The facility, significantly larger than the previous location used since 2004, provides space for volunteer programs. Cameron McAllister, Administrator of Economic & Community Development, describes the collaborative approach: “The new animal shelter, built in 2024, allows us to expand the services that we offer within the department, but also host programming that we may not have had the chance to do at the previous location.” The facility’s community impact became evident before its official opening. “A week or two prior to the grand opening of the facility, we hosted a community workshop volunteer opportunity for individuals to come together and assist us in putting pieces of equipment in the animal shelter in order to prepare for our public grand opening,” McAllister explains. The shelter exemplifies East Ridge’s broader infrastructure strategy of creating assets that serve multiple community functions. Unlike traditional municipal projects focused solely on service delivery, the facility actively fosters civic engagement through hands-on volunteer opportunities. McAllister confirms this dual purpose: “It’s certainly been an opportunity for members of the community to come together as a whole.” The shelter’s success has established a template for future projects that combine essential services with community-building elements, demonstrating how strategic infrastructure investments can strengthen municipal capacity and social connections. 3 CIVIL AND MUNICIPAL VOLUME 06, ISSUE 09 EAST RIDGE, TN
commercial expansion: “We continue to bring in additional new businesses into what we call the Exit One development.The developers have acquired an additional four and a half acres from the state, and they’re working to bring in two large businesses.” The area now includes Mountain Power Sports with 20,000 square feet minimum, plus upcoming additions like Whataburger, which will begin construction within the month and hopes to open by year’s end. Miller adds,“We also have an old bank CREATING A TOWN CENTER VISION East Ridge’s geography occasions development challenges that have shaped its innovative town center approach.The long,narrow city stretches along the Georgia border with Interstate 75 bisecting its eastern edge, creating distinct development zones that require different strategies for commercial and community growth. Scott Miller, City Manager, outlines the eastern 4 CIVIL AND MUNICIPAL VOLUME 06, ISSUE 09
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building that’s been converted into a Smoothie King and Jersey Mike’s.” The town center concept focuses on the City’s geographic heart around City Hall, where East Ridge is investing heavily in community amenities. Mayor Williams explains the strategy: “We’re trying to build a town center concept in the center of town. We’ve got a community center receiving $1.2 million worth of upgrades and enhancements.” The centerpiece is the $6 million Venue 1921, a 12,000-square-foot pavilion with 7,000 square feet of open space featuring no poles or columns.“We’ll be able to accommodate dinners up to 500,” Miller notes, describing the facility’s six garage doors on the north and south side of the building that open to create indoor-outdoor flow. The retired McBrien school adds future potential with its 55,000 square feet available for business incubation, arts venues, or expanded municipal services, completing the comprehensive town center vision. STRATEGIC BUSINESS INCENTIVES East Ridge’s competitive advantage stems from Tennessee’s Border Region Retail Tourism Development District Act. Mayor Williams explains the act’s mechanics: “We have been utilizing a piece of legislation that came out of the state called Border Regions, and it is a tax incentive on the sales tax collection. A portion of the state sales tax is used to incentivize business to come and develop in our city.” Under the program, businesses can submit all development costs; from property purchase and demolition through construction as qualifying expenses. Once operational, 75 percent of the state sales tax portion gets allocated back to reimburse those expenses over a 20-year period. The return on investment proves substantial for developers. “They’re getting, in some cases, 50 percent of their expenses reimbursed over a 20-year period. This pays out through 2047,” Mayor Williams notes. Miller confirms the program’s success: “We have about 22 development agreements to date, J. Scott Miller, City Manager 6 CIVIL AND MUNICIPAL VOLUME 06, ISSUE 09
and we’ve got several more that are scheduled over the next few months.” The urgency stems from the program’s approaching deadline, the investment period expires in 2027, though payouts continue through 2047. Additionally, East Ridge offers a facade grant matching 50 percent of improvements up to $20,000 for existing businesses. The city has also negotiated payment-in-lieu-of-taxes agreements for manufacturing companies, demonstrating flexibility in creating business-friendly policies that extend beyond retail development to support diverse economic growth. ADDRESSING HOUSING NEEDS East Ridge’s housing pipeline shows a comprehensive approach to meeting diverse residential demands across multiple price points and housing types. The city has approved several major developments that will add hundreds of units to address regional housing shortages while managing the impact of rapid property value increases. Miller details the current projects: “Hummingbird Village in the eastern part of the community has about 55 sites for homes to be built.That was about 150 to 160 single family homes total.” Additional developments include 61 townhouses on Graston Avenue behind Parkridge East Hospital, currently under construction with footings being poured, and 68 single family homes approved for the Gateway Development project area.“On Fountain Avenue, we have 15 cottage homes that are being constructed at the present time,” Miller adds. The Hummingbird Village Phase 2 development Kristen George blissproducts.com 800-248-2547 info@blissproducts.com OVER 40 YEARS OF QUALITY COMMERCIAL PLAYGROUND EQUIPMENT, SUPERIOR SERVICE & COMMITMENT TO COMMUNITY PLAY OUR SERVICES INCLUDE Playground Design On-Site Consulting Equipment Installation Safety Reviews & Third Party Audits Parts Identification SEE OUR PLAYGROUNDS IN ACTION — BUILT FOR SAFETY & FUN! 7 CIVIL AND MUNICIPAL VOLUME 06, ISSUE 09 EAST RIDGE, TN
is the largest single project with 112 townhouses proposed for a 21-acre site known as the Old Horse Farm. Miller explains the timeline: “That’s in the site development phase right now and expects completion in a year.” The city has also rezoned property near Champy’s and Portofino’s for mixeduse development that will convert an existing hotel into studio apartments while adding retail space. Mayor Williams addresses affordability concerns through property tax policy. “We have a certified tax rate. So, if property tax value goes up, the tax rate is decreased to offset the increase of the property value.” Despite residential assessments rising close to 60 percent over four years, the tax rate dropped from 1.25 to 0.79 per $100 assessed value.“Your property tax doesn’t double or go up 60 percent,” Mayor Williams emphasizes, indicating how municipal policy can buffer residents from market pressures. INFRASTRUCTURE INVESTMENT AND FUTURE PLANNING East Ridge has transformed its approach to infrastructure maintenance from reactive repairs to systematic investment, establishing clear funding priorities that support residential neighborhoods and major economic development projects.The city’s infrastructure strategy addresses immediate needs while positioning for continued growth. Mayor Williams describes the residential focus: “We did not have a clearly defined resurfacing program for our residential neighborhoods and streets. So, we’ve been able to commit and started with a million plus probably about three or four years ago. snapdragonhemp.com 8 CIVIL AND MUNICIPAL VOLUME 06, ISSUE 09
We’ve continued to increase it and we’re about $1.7 million, close to $2 million that we’re investing in our infrastructure for our streets, for our residents.” Major arterial improvements target traffic flow around key economic assets. Miller explains the current priority: “We’re widening North Mac Smith Road over towards I-75 and Ringgold Road, but we’re also close to going out to seek bid proposals for the widening of the roadway and intersection improvements on Spring Creek Road in front of Parkridge Hospital.” The Spring Creek Road project addresses a threeyear planning effort to accommodate growth at the city’s largest employer. Parkridge East Hospital has expanded substantially creating traffic demands that require infrastructure upgrades. “The hospital has added an additional emergency, additional maternity and other features. So, we need to widen the road to be able to get people in and out of there in a safe manner,” Miller notes. The project serves dual purposes, providing secondary access to the Gateway development while supporting the hospital that employs the largest workforce in East Ridge. LIVE, WORK, PLAY East Ridge’s leadership operates from a philosophy that municipal government should create conditions for prosperity while minimizing resident tax burden through diversified revenue streams. The approach prioritizes excellent services funded by visitor spending rather than property tax increases, creating a sustainable model for growth. Mayor Williams articulates this vision: “It’s just being able to provide a trustworthy government that is citizen focused to provide benefits to the community, alleviate as much burden on the citizens by bringing in businesses and economic development creating multiple streams of taxes that provide the services.” The strategy leverages tourism and retail spending to fund police, fire, and infrastructure improvements without burdening residents.“If you can alleviate the tax burden on the property owners and the residents ©2025 First Horizon Bank. Member FDIC. Brian Williams, Mayor 9 CIVIL AND MUNICIPAL VOLUME 06, ISSUE 09 EAST RIDGE, TN
PREFERRED VENDOR/PARTNER n Lumberjack’s Tree Service www.lumberjackstn.com Lumberjacks Tree Service is Chattanooga’s trusted, locally owned tree care company. Since 2012, our certified team has provided expert tree removal, trimming, and emergency services with a focus on safety and professionalism. No subcontractors—just skilled, local crews you can count on. n Bliss Products www.blissproducts.com Bliss Products and Services, Inc.— founded in 1984 and still family-owned — is a leading manufacturer’s representative specializing in commercial playground and outdoor recreation equipment across the Southeast. Representing over 40 reputable manufacturers, BPS provides expert design, turnkey installations, recycledmaterial options, and certified safety guidance— your trusted partner for enriching community play and recreation. n Snapdragon Cannabis Co. www.sdcctn.com Snapdragon Cannabis Co. delivers exceptional drinks, delectable edibles, and award-winning customer service rooted in passion for the plant. Every sip and bite is crafted with care, celebrating true Tennessee cannabis culture while prioritizing potency and quality. Our dedication shines through our products and people, elevating experiences and connecting communities. n First Horizon Bank www.firsthorizon.com At First Horizon Bank, we invest in the communities we serve and help our clients unlock their full potential by bringing together the best of big and small banking. With strong relationships and community engagement, we are deeply committed to driving positive change within out footprint. East Ridge continues demonstrating how strategic municipal leadership can transform challenges into competitive advantages. by having visitors come into our park and invest with sales tax, that alleviates the burden placed upon our citizens and we can provide excellent services,” he explains. The city’s systematic planning includes a 10-year recreation plan running from 2024 to 2034, with scheduled updates at the five-year mark. McAllister describes the approach: “Over the last year and a half, we have started implementing the changes that we set out to engage with for our current recreation plan.” Future priorities include Springvale Park expansion with the potential of pickleball courts and continued business development across all city zones. Miller summarizes the comprehensive goal: “We are working to make East Ridge a place to live, work, and play where people want to live here and love to live here, like their services, reasonable cost and also amenities.” The vision balances economic growth with quality of life, creating a model that other border communities can watch closely as Cameron McAllister, Administrator of Economic & Community Development 10 CIVIL AND MUNICIPAL VOLUME 06, ISSUE 09
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