Posted January 05, 2009

CHATTANOOGA, Tennessee -- The Chattanooga Chamber Foundation, a sister organization to the Chattanooga Area Chamber of Commerce, has sold the Civic Forum Parking Lot at 1001 Market Street to Republic Parking System International, LLC.
 
In a separate transaction, the Chamber Foundation has reinvested the proceeds from the sale of the parking lot toward the purchase of the office building at 811 Broad Street, where the Chattanooga Area Chamber of Commerce is based, from BBC Associates, represented by Steve Hunt of Berry & Hunt.

According to Tom Edd Wilson, president and CEO of the Chattanooga Chamber, the two transactions substantially improve the Chamber's financial footing.  "The Chamber occupies the basement and first two floors of the 811 Building," said Wilson.  "Most of the remainder is leased to other businesses.  Because the building generates much greater revenues than the parking lot did, we will be able to offset a more substantial part of our occupancy cost by owning the building."
 
In addition to the positive financial aspects of the transactions, Wilson pointed to the intangible value associated with the 811 Building.  "Our first priority is to be good stewards of the Chamber's finances, so that we can continue to deliver strong value to the small and large businesses who invest in us as well as to the public at large through our successful job creation efforts," Wilson said. 

"Relocating the Chamber has also allowed us to represent the city and deliver the kind of positive first impression that was essential as we worked to recruit Volkswagen, Alstom, T-Mobile, and dozens of other companies we have successfully attracted to Chattanooga over the last five years."
 
Wilson also noted that the timing for purchase was determined in part by an option that was negotiated when the Chamber first leased space at the 811 Building in 2003.  "Because the value of the building has increased more quickly than expected and occupancy of the leased space is so high, acquiring this property has become a deal that is too good to pass up," Wilson said.  "This building is an asset that will continue to increase in value for years to come."
 
The sale of the Civic Forum Parking Lot and purchase of the 811 Building were approved by the Chattanooga Chamber Foundation Board, which authorized Wilson and Mike McGauley of Fidelity Trust Company to negotiate on its behalf.
 
An option agreement that had existed between the Chamber Foundation and the City of Chattanooga to make provision for the future use of the Civic Forum Parking Lot for the construction of a proposed new federal courthouse has been established between the City and Republic Parking System International, LLC.  The newly negotiated option is set to continue until 2015.
 
Chattanooga City Mayor Ron Littlefield noted that the option agreement gives the city maximum flexibility without having to make any financial commitment at the present time.  "The Civic Forum Parking Lot is surrounded by the downtown library, EPB's new office building, and the TVA office complex," Littlefield said.  "The public has a strong interest in making sure that the Civic Forum property is eventually developed in a manner that advances our on-going revitalization efforts.  The option agreement gives us maximum flexibility without having to commit any public funding until plans for the property crystallize." 
 
The Chattanooga Chamber Foundation and the Chattanooga Area Chamber of Commerce are sister organizations that are directed by two separate boards of directors.  The Chamber Foundation is a 501(c) 3 non-profit that receives funding for economic development and owns organizational assets including the newly acquired building.  The Chattanooga Area Chamber of Commerce is a 501 (c) 6 business association with over 1,600 member companies.  The Chattanooga Area Chamber of Commerce employs staff, many of whom are contracted to work wholly or partly for the Chattanooga Chamber Foundation.