East Ridge receives Municipal League award for Excellence in Economic Development

Located on the Tennessee-Georgia line, the city of East Ridge has met the challenge of sales tax leakage across the border head-on with financial incentives and investments that have revitalized its downtown business district.

In recognition of the innovative efforts of the city of East Ridge to reinvest and reinvigorate its downtown and local business climate, the Tennessee Municipal League is pleased to present East Ridge with an award for Excellence in Economic Development. 

In October 2011, East Ridge designed a 950-acre tract inside the city limits as a Border Regional Retail Tourism Development District, which is designed to keep sales tax dollars in Tennessee by making border cities more competitive. 

East Ridge was able to enter into financial incentive agreements to spur new development on the tract and then be reimbursed for the cost of those incentives through a portion of the state’s increased sales tax revenue.

Since the establishment of the district, businesses developed in the district include a Bass Pro Shop, Hampton Inn, Chick-Fil-A, Starbucks, Jonathan’s Grille, Food City, TownPlace Inn & Suites, Dunkin Donuts, Southern Honda Powersports, and more. 

The district was also chosen as the first Chattanooga-area location for Top Golf and the founding USL League One professional soccer club the Chattanooga Red Wolves chose to locate their stadium in the district. 

Since the region’s inception, the city has seen sales tax growth of nearly $800 million. Those funds have been used to reinvest in growth and development, benefiting both East Ridge and surrounding areas of the state. 

The city has also funded a Building and Facade Improvement Grant to help existing businesses in its commercial district beautify, improve, and promote high-quality redevelopment in the city center.