2004 Data Book

Community Data & Locational Advantages

Chattanooga, Tennessee is strategically located in the Southeast in the heart of the beautiful Tennessee Valley. Chattanooga has gained national and international recognition for its innovative programs, public/private partnerships and commitment to growing businesses.

Population

Chattanooga Hamilton County Chattanooga MSA* 50-mile radius 100-mile radius 2005 165,927 323,740 502,842 1,034,187 5,713,540 2006 168,293 328,551 510,542 1,034,025 5,816,469 2007 169,847 331,117 515,810 1,047,177 5,949,769 2008 170,819 334,123 520,089 1,060,581 6,126,730 2009 171,349 337,175 524,303 1,107,374 6,263,531 Source: U.S. Census Bureau, DemographicsNow

Climate

Annual Average Temperature (avg. low 50.2 degrees, avg. high 70.6 degrees) 60.5 degrees Annual Rainfall 51.8 inches Annual Snowfall 2.8 inches Prevailing Wind Direction South Average Elevation (Downtown) 675 feet Source: NOAA, National Climatic Data Center, Local Climatological Data

Land Area

Counties in the Chattanooga MSA* Square Miles Hamilton (includes the City of Chattanooga: 124) 543 Marion 500 Sequatchie 266 Catoosa 162 Dade 174 Walker 446 TOTAL 2,091 Source: U.S. Census Bureau

Per Capita Income

Hamilton County Chattanooga MSA* 2010 $27,428 $25,177 Source: DemographicsNow

Job Growth Non-Agricultural Employment Chattanooga Metropolitan Statistical Area (MSA*) Annual Averages.

2005 240,800 2006 245,500 2007 247,500 2008 245,800 2009 226,100 Source: U.S. Department of Labor, Bureau of Labor Statistics

Unemployment Rates Annual Averages

U.S. TN Chattanooga MSA* Hamilton County 2005 5.1 5.6 4.8 4.7 2006 4.6 5.2 4.4 4.4 2007 4.6 4.8 4.2 4.1 2008 5.8 6.4 5.7 5.5 2009 9.3 10.5 9.4 9.1 Source: U.S. Department of Labor, Bureau of Labor Statistics

Transportation

Railroads CSX Corporation and Norfolk Southern Switching facilities are available throughout the area.

Ground Interstate Highways: I-75, I-24, I-59 U.S. Highways: 11, 27, 41, 64, 72, 76, 127 State Highways: 2, 8, 17, 27, 29, 38, 58, 60, 134, 148, 153, 312, 316, 317, 318, 319, 320, 321, 389 More than 70 motor freight companies and 4 freight terminals.

Air Major/National & Regional/Commuter Airlines include: Allegiant Air, American Eagle, Delta Connection, Northwest Airlinks and U.S. Airways Express

Chattanooga Metropolitan Airport provides service to Atlanta, Charlotte, Chicago, Dallas, Ft. Lauderdale, Memphis, Orlando, Tampa/St. Pete and Washington D.C.

Water Tennessee River – three public port terminals. Connecting to ports along the Tennessee, Mississippi, Missouri and Ohio Rivers and the Gulf of Mexico.

Foreign Trade Zone Foreign Trade Zone Number 134 provides an option for businesses seeking to manage operating costs.

Businesses in the Chattanooga MSA* Chattanooga’s diverse economy is strong. In the MSA*, nearly 23,000 businesses employ over 200,000 people and generate nearly $30 billion in annual sales.

Business Total Total Sales All MSA* Businesses Count Empl. (in $ millions) Finance, Insurance, and Real Estate 1,805 14,464 16,896.8 Manufacturing 1,087 31,211 2,603.9 Services 10,798 74,360 4,250.0 Transportation and Public Utilities 849 15,351 1,647.4 Construction 2,148 12,638 1,780.8 Wholesale Trade 1,155 10,178 1,369.6 Retail Trade 3,950 38,518 1,283.1 Agriculture, Forestry, and Fishing 565 1,828 77.5 Mining 12 82 0.8 Public Administration 357 14,953 N/A TOTAL 22,726 213,583 29,909.90 Source: Dun & Bradstreet ZapData; data as of 8/10

Manufacturing The manufacturing sector has over 1,200 companies in 19 industry segments. MSA* manufacturing companies employ over 34,000 people and generate nearly $3 billion in annual sales.

SIC 2 Digit Business Total Total Sales Code Count Empl. (in $ millions) 20 Food and Kindred Products 46 7,124 53.8 22 Textile Mill Products 60 4,226 302.4 23 Apparel, Finished Products from Fabrics & Similar Materials 45 262 16.3 24 Lumber and Wood Products, Except Furniture 76 503 60.1 25 Furniture and Fixtures 34 679 30.8 26 Paper and Allied Products 26 1,840 70.4 27 Printing, Publishing and Allied Industries 200 1,738 111.3 28 Chemicals and Allied Products 92 2,768 529.8 29 Petroleum Refining and Related Industries 21 210 12.7 30 Rubber and Miscellaneous Plastic Products 25 2,242 34.6 31 Leather and Leather Products 11 94 4.5 32 Stone, Clay, Glass, and Concrete Products 61 855 25.1 33 Primary Metal Industries 41 1,034 27.1 34 Fabricated Metal Products, Except Machinery & Transport Equipment 110 2,540 129.2 35 Industrial and Commercial Machinery & Computer Equipment 173 3,507 912.7 36 Electronic, Electrical Equipment & Components, Except Computer Equipment 48 1,966 61.7 37 Transportation Equipment 28 1,334 280.8 38 Mesr/Anlyz/Cntrl Instrmnts; Photo/Med/Opt Goods; Watchs/Clocks 51 669 50.6 39 Miscellaneous Manufacturing Industries 99 933 52.5 TOTAL 1,247 34,524 2,766.4 Source: Dun & Bradstreet ZapData; data as of 8/10

Employment Costs Average Pay by Sector – Hamilton County (2009) Avg. Weekly Wage Avg. Annual Wage Manufacturing $905 $47,035 Construction $886 $46,066 Trade, Transportation & Utilities $634 $32,954 Financial Activities $1,143 $59,421 Information $826 $42,947 Retail Trade $496 $25,805 Wholesale Trade $982 $51,062 Professional & Business Services $729 $37,887 Education & Health Services $847 $44,047 Other Services $548 $28,509 Leisure & Hospitality $297 $15,419 TOTAL AVERAGE $761 $39,569 Source: U.S. Department of Labor, Bureau of Labor Statistics Note: Average weekly and annual wage figures do not include any benefits.

Workers’ Compensation Tennessee ranks below the national average of all states in workers’ compensation costs per $100 of payroll. The Tennessee General Assembly is continually seeking ways to increase competition and decrease workers’ compensation costs for Tennessee businesses. Effective in July 2005, comprehensive workers compensation reform legislation became law which instituted a medical fee schedule, simplified administrative hearing procedures, and led to a steady decline in overall employer costs.

Source: Tennessee Department of Labor and Workforce Development, Workers’ Compensation Division

Employment Taxes Tennessee has no state income tax on wages and no payroll tax. Federal income tax, FICA, Medicare and federal unemployment taxes are administered as in any other state. The state unemployment tax is a maximum of 2.7 percent for all industries, except construction and mining, on the employee’s first $9,000 of earnings each year; any income over that amount is exempt. Manufacturing employers who have been in business less than three years are taxed at a rate of 6.5%.

Source: Tennessee Department of Labor and Workforce Development, Employment Security Division

Retail Sales Hamilton County (in $ millions)

2005 $4,942.8 2006 $5,328.4 2007 $5,468.5 2008 $5,438.4 2009 $4,754.6 Source: Tennessee Department of Revenue

Total New Construction

Chattanooga MSA* - Valuation (in millions) Residential Non-Residential 2005 $582.5 $209.8 2006 $542.8 $221.3 2007 $442.4 $356.3 2008 $250.7 $169.7 2009 $241.2 $339.6

Chattanooga MSA* - Square Feet (in millions) Residential Non-Residential 2005 7.546 2.282 2006 6.741 2.060 2007 5.491 3.274 2008 3.128 1.637 2009 2.916 3.630 Source: F.W. Dodge Division, McGraw-Hill Companies

Real Estate Rent Per Square Foot Per Year – 2009

Industrial Low High Effective Avg. Vacancy Bulk Warehouse $2.25 $3.25 $2.50 12.0 Manufacturing $2.40 $3.50 $2.80 5.0 High-Tech/R&D $6.00 $10.00 $7.00 5.0

Downtown Office Low High Effective Avg. Vacancy New Construction (AAA) n/a n/a n/a n/a Class A (Prime) $17.00 $22.00 $19.00 7.0% Class B (Secondary) $12.00 $16.00 $14.00 12.0%

Suburban Office Low High Effective Avg. Vacancy New Construction (AAA) $18.00 $22.00 $20.00 10.0% Class A (Prime) $18.00 $20.00 $19.00 10.0% Class B (Secondary) $12.00 $16.00 $14.00 15.0%

Development Land Low (Price/Acre) High (Price/Acre) Office in CBD (per buildable SF) $650,000 $1,200,000 Land in Office Parks $125,000 $250,000 Land in Industrial Parks $65,000 $125,000 Office/Industrial Land – non park $100,000 $300,000 Retail/Commercial Land $200,000 $1,500,000

Source: NAI Charter Real Estate Corporation

Education

Hamilton County Schools (2009-2010) Number of Elementary Schools 45 Number of Middle/High Schools 14/16 Number of Adult High Schools 1 Total Student Enrollment 39,247 Total Number of Teachers 2,811 Faculty with Advanced Degrees 1,507 Per Pupil Expenditure $9,334 Teacher-Student Ratio 1:14

College Entrance Exam Scores (2009) ACT SAT Hamilton County Schools 19.0 -- Tennessee 20.6 1,701 National Average 21.1 1,509 Source: Tennessee Department of Education

Private and Parochial Schools There are 34 private and parochial schools in the Chattanooga area with combined enrollment of nearly 11,000. Source: Hamilton County Department of Education Annual Financial Report

Colleges & Universities Fall 2009 Enrollment Degrees University of Tennessee at Chattanooga 10,526 More than 40 undergraduate, 19 graduate, 1 specialist’s and 3 doctorate degrees programs.

Chattanooga State Technical Community 11,740 More than 50 majors of study College toward degrees and certificates.

Southern Adventist University 2,891 50 undergraduate degrees and 10 graduate degrees.

Covenant College 1,006 26 undergraduate and one graduate degree program

Tennessee Temple 505 Over 40 different majors toward undergraduate and graduate degrees.

Source: Individual Schools

Tax Structure – Local

Property Tax Chattanooga City $2.3090 per $100 of assessed value Hamilton County $2.7652 per $100 of assessed value TOTAL $5.0742 per $100 of assessed value

Ratio of Assessment Chattanooga Hamilton County Residential 25% 25% Commercial & Industrial Real 40% 40% Commercial & Industrial Personal 30% 30%

Hamilton County Municipal Rate Chattanooga $2.3090 Collegedale $1.1580 East Ridge $1.1227 Lakesite $0.2400 Lookout Mountain $1.4700 Red Bank $1.1001 Ridgeside $1.9000 Signal Mountain $1.5134 Soddy-Daisy $0.6860 Walden $0.4400 Unincorporated Hamilton County $2.7652

Source: Hamilton County Assessor of Property, 2010 Tax Rates

Sales Tax Chattanooga 2.25% Collegedale 2.25% East Ridge 2.25% Lakesite 2.25% Lookout Mountain 2.25% Red Bank 2.25% Ridgeside 2.25% Signal Mountain 2.25% Soddy-Daisy 2.25% Walden 2.25% Unincorporated Hamilton County 2.25% Tennessee State Sales Tax 7.00%

Sales Tax - Other MSA* Counties Marion, TN 2.75% Sequatchie, TN 2.25% Catoosa, GA 3.00% Dade, GA 3.00% Walker, GA 3.00% Georgia State Sales Tax 4.00%

Source: Tennessee Department of Revenue, Georgia Department of Revenue. Rates effective April 1, 2009.

Tax Structure – State of Tennessee

Sales Tax State tax – 5.5% tax on food and food ingredients; 7% on all other tangible personal property unless specifically exempted.

Property Tax None. Property taxes are assessed and collected by the local governments.

Excise Tax 6.5% of Tennessee taxable income

Franchise Tax 0.25% of the greater of net worth or real and tangible property in Tennessee. The minimum tax is $100.

Unemployment 0.00% to 10% of first $9,000 of wages paid to each employee Compensation Tax in a calendar year. New employers (other than construction and mining) are taxed at a rate of 2.7%. New employer rate applies for the first three years before moving to an experience-based rate.

Inventory Tax None on finished good inventory. Varies based on the type of business.

Personal Income Tax No income tax on wages. Taxable dividend and interest income area taxed at the rate of 6.0%. The first $1,250 on an individual return and the first $2,500 on a joint return are not taxed.

Source: Tennessee Department of Revenue

Tax Structure – State of Georgia

Sales Tax 4.0% (includes: natural gas, oil gasoline, telephone, artificial gas, steam, electricity, and rentals.) Sales tax on food is 2%.

Property Tax Property tax or ad valorem tax is based on the value of real and personal property subject to the tax. All property is assessed at 40% of fair market value unless otherwise specified by law. The state rate is ¼ mill per $1,000 of assessed value. The local rate is set annually by the city or county authority or board of education. Cities and counties may, by referendum, exempt some or all inventories from the property tax.

Corporate Excise Tax Determined on a graduated scale; maximum tax being $5,000. Domestic corporations are taxed on 100% of net worth. Foreign (out-of state) corporations are taxed only on net worth apportioned to Georgia.

Franchise Tax A graduated franchise tax from $10 on corporate paid-in capital not exceeding $10,000, to $5,000 on paid-in capital over $22,000,000. Applied to foreign and domestic corporations based on networth including capital stock, treasury stock, paid-in surplus and earned surplus.

Unemployment 0.00% to 5.4% of the first $8,500 of wages paid to each employee in calendar year. Compensation Tax New employers 2.7% of first $8,500 in wages. New employer rate applies for the first three years before moving to an experience-based rate.

Inventory Tax/ The governing authority of any county or municipality may elect, with the Freeport Exemption approval of the voters, to exempt the following types of tangible personal property:

 Inventory of goods in the process of being manufactured or produced including raw materials and partly finished goods;

 Inventory of finished goods manufactured or produced within this State held by the manufacturer or producer for a period not to exceed 12 months;

 Inventory of finished goods on January 1 that are stored in a warehouse, dock, or wharf which are destined for shipment outside this State for a period not to exceed 12 months;

 The percentage of exemption can be set at 20, 40, 60, 80 or 100 percent of the inventory value. Over sixty percent of Georgia counties and cities have adopted the Freeport Exemption at some level.

Personal Income Tax The state’s corporate income tax rate of 6% has not changed since 1969. This tax applies ONLY to the portion of income that is earned in Georgia. Beginning in 2006, tax liability will be calculated with a stronger emphasis on gross receipts in Georgia. The other component weightings that currently have bearing on tax liability will gradually decrease and by 2008 will be eliminated from the calculation.

Source: Georgia Department of Revenue

Government

City Government Government Form Mayor/Council # of Elected Officials 10 Mayor Ron Littlefield First Elected 2005 (4 year terms) Next Election Date 2013 City Manager No

County Government Government Form Mayor/Commission # of Elected Officials 10 (excluding judiciary and other officers) Mayor Claude Ramsey First Elected 1994 (4 year terms) Next Election Date 2010 County Manager No

State Government Government Form Senate/House Number of Elected Officials 8 (in Hamilton County) Upper House Representing Area 2 Total Statewide Upper House 33 Lower House Representing Area 6 Total Statewide Lower House 99 Governor Phil Bredesen (D) First Elected 2002 Allowed to Run for Another Term No Next Election Date 2010

U.S. Government Representatives Congressional Districts District 3

U.S. Congresspersons Serving the Area Congressman Zach Wamp (R) First Elected 1994 Next Election Date 2010

U.S. Senators Serving the Area Senator Lamar Alexander (R) First Elected 2002 Next Election Date 2014

Senator Bob Corker (R) First Elected 2006 Next Election Date 2012

Government Services

City Services Police Officers 471 Police Vehicles 450 Firefighters 400 Fire Trucks 24 Insurance Rate Class 2

County Services Patrol Deputies 310 Sheriff Vehicles 229 Volunteer Firefighters 400 (approx.) Fire Trucks 130 (approx.) Insurance Rate Class 3-9 Source: City of Chattanooga, Hamilton County

Recreation Facilities

Parks 98 (over 800 total acres) Golf Courses 17 9 public, 8 private Country Clubs 8 Community Centers 16 Hotels and Motels 67 (9,000+ total rooms) Sources: Hamilton County Parks and Recreation, City of Chattanooga Parks and Recreation, Chattanooga Convention & Visitors Bureau

Medical Care

Health Care Providers in Hamilton County Medical Doctors 891 Registered Nurses 5,321 Dentists 199 Psychiatrists 25 Psychologists 81 Source: Health Statistics and Information, Tennessee Department of Health, 2008

Chattanooga/Hamilton County Hospitals Number Licensed beds Hospitals 11 4,940 Nursing Homes 12 1,842 Residential Homes for the Aged 12 282 Home Health Organizations 15 N/A Assisted Living 16 995

Health Care Costs Chattanooga MSA* National Average Optometrist Visit $87.00 $85.00 Doctor's Visit 94.73 82.98 Dentist's Visit 59.67 77.68 Source: ACCRA Cost of Living Index, 2009 Annual Average

Erlanger Medical Center is one of only six Level I Trauma Centers in the State of Tennessee. This status also includes responsibility for T. C. Thompson Children’s Hospital, which makes it one of only two Level I Pediatric Trauma Centers in Tennessee. Together they are the only trauma centers within 100 miles of the Chattanooga area, and state of Tennessee. They primarily serve patients from Tennessee, Alabama, Georgia, and North Carolina, with more than half of the patients coming from outside of the home county.

The Regional Emergency Medical Services Alliance (REMSA) is based at Erlanger. REMSA’s Air Medical Program, LIFE FORCE began operations in December 1988 with one aircraft that averaged over 700 patient flights annually. With the addition of LIFE FORCE 2 and 3, and expansion into areas not previously served by air medical transportation, LIFE FORCE’s annual patient flights have doubled. In 1995 LIFE FORCE 2 was added to better serve the Upper Cumberland region communities and LIFE FORCE 3 was added in 2007 to provide additional coverage to the North Georgia region. These additional aircraft have aided in improving the odds in the race against time during the “Golden Hour.”

Communications

Newspapers Frequency Circulation Chattanoogan.com Internet 175,000 visits/week Chattanooga Times-Free Press Daily/Sunday 74,273 daily / 99,722 Sunday Chattanooga Courier Weekly 8,500 Cleveland Daily Banner Daily 14,500 daily / 17,300 Sunday Daily Citizen-News Daily 14,000 Hamilton County Herald Weekly 1,700 Lookout Mountain Mirror Monthly 3,300 Lookout Mountain Post Monthly 2,500 The Pulse Weekly 15,000 Signal Mountain Mirror Monthly 7,300 Signal Mountain Post Twice monthly 7,500 Southern Accent Weekly 2,500 University Echo Weekly 3,000 Source: Individual newspapers

Television Stations Local: ABC, NBC, CBS, Fox and CW affiliates. Cable service is available, with digital service in many areas.

Radio Stations Local AM: 10+ Local FM: 20+

Telecommunications and Internet Service Traditional and competitive local exchange carriers provide telecommunications service.

Multiple internet-related companies serve the Chattanooga area including internet service providers, website designers and internet fulfillment and distribution companies.

Utilities

Electricity Supplier Electric Power Board of Chattanooga Source Tennessee Valley Authority

Natural Gas Supplier Chattanooga Gas Company Source East Tennessee Natural Gas & Southern Natural Gas Co.

Treated Water Supplier Tennessee-American Water Co. Source Tennessee River Rated Capacity 65.0 mgd Average Daily Demand 39.233 mgd Peak Demand 56.000 mgd

Treated Water Supplier Eastside Utility District Source Tennessee River Rated Capacity 16 mgd Average Daily Demand 6.89 mgd Peak Demand 9.28 mgd

Treated Water Supplier Hixson Utility District Source Case Springs (in Hixson) Rated Capacity 20 mgd Average Daily Demand 6.86 mgd Peak Demand 10.67 mgd

Sewer Supplier City of Chattanooga Total Treatment Capacity 140 mgd Peak Hydraulic Capacity 220 mgd

Source: Individual Utilities

Chattanooga MSA* Largest Employers (with 500+ full-time employees)

Full-Time Part-Time Company Product/Service Emps. Emps. •BlueCross BlueShield of Tennessee Health Care Financing 4,458 56 •Hamilton County Dept. of Education Elementary & Secondary Schools 4,297 1508 Tennessee Valley Authority Utility - Electric Service 3,715 8 •Erlanger Health System Hospital 3,359 436 •McKee Foods Corporation Mfr. Cakes & Cookies 3,060 •Unum Insurance 2,800 Memorial Health Care System Health Care 2,796 633 •City of Chattanooga Government 2,266 164 CIGNA HealthCare Health Services 1,953 •Hamilton County Government Government 1,867 202 Pilgrim's Pride Corporation Poultry Slaughtering & Processing 1,850 Roper Corporation Mfr. Cooking Products 1,500 •Astec Industries, Inc. Mfr. Asphalt & Construction Equip. 1,317 Parkridge Medical Center, Inc. Healthcare - Hospital 1,058 93 The University of TN at Chattanooga University 1,051 44 Convergys Corporation Out-Sourced Customer Service 1,000 •U.S. Xpress Enterprises, Inc. Transportation Services 932 18 •Hutcheson Medical Center Hospital 907 T-Mobile Telecommunications 792 •Kenco Group Service Industry, Warehousing 650 Koch Foods, LLC Poultry Producer, Processor 605 •Chattanooga St. Tech. Community College Two Year State College 571 71 United States Postal Service U.S. Postal Service 557 71 •Chattem Inc. Mfr. Health & Beauty Aids 553 •Covenant Transport Inc. Trucking 534 SunTrust Bank, Chattanooga Commercial Bank 523 31 BI-LO, Inc. Grocery Stores 511 668 •Locally owned and/or headquartered

Employers with 500+ employees in descending order by largest number of full-time employees as of 12/31/09.

Source: Company Personnel Departments and Harris InfoSource

Sampling of Nationally Recognized Companies Headquartered in Chattanooga

BlueCross BlueShield of Tennessee Tennessee’s leader in health care financing with 35 percent market share.

CBL and Associates Properties, Inc. One of the largest shopping center developers in the U.S.

Chattanooga Bakery, Inc. Maker of Moon Pies. Chattem, Inc. Maker of Flexall, Aspercreme, Bull Frog, Gold Bond, Selsen Blue, Pamprin, Dexatrim and other well-known products. Covenant Transport, Inc. One of the ten largest truckload carriers in the United States and operates the industry's largest fleet of team driven tractors. Double Cola Established in 1922. Today the company manufactures Double Cola and Ski brand soft drinks. Gold Bond, Inc. Maker of advertising specialty pens, pencils, rulers and other products.

Krystal Company Maker of Krystal hamburgers.

McKee Foods Corporation Maker of Little Debbie snack cakes. Miller Industries Towing The towing industry was born in Chattanooga in 1916. Miller Equipment, Inc. Industries is the world's largest integrated provider of vehicle towing and recovery equipment, systems and services.

Olan Mills, Inc. Worldwide leader in portrait photography. Propex, Inc. Recognized as the second largest producer of backings for the carpet industry. Top Flight, Inc. Each year, the company produces more than a billion envelopes, 10 million packs of filler paper, and in excess of 25 million wire bound notebooks. U.S. Xpress Enterprises, Inc. The fifth-largest publicly owned truckload carrier in the United States.

Unum The world's largest underwriter of disability insurance.

*Metropolitan Statistical Area (MSA) includes Hamilton, Marion and Sequatchie counties in Tennessee and Catoosa, Dade and Walker counties in Georgia.

Workforce

Labor Force Employment Growth

Hamilton County Annual Averages Year Labor Force Employment Unemployment Rate 2005 158,240 150,737 4.7 2006 161,842 154,704 4.4 2007 165,974 159,193 4.1 2008 167,561 158,307 5.5 2009 162,054 147,296 9.1

Chattanooga MSA* Annual Averages Year Labor Force Employment Unemployment Rate 2005 253,483 241,370 4.8 2006 259,670 248,293 4.4 2007 261,683 250,698 4.2 2008 264,299 249,131 5.7 2009 255,463 231,360 9.4 Source: U.S. Department of Labor, Bureau of Labor Statistics

Available Labor-Hamilton County Workers Percentage Unemployed Workers 15,330 91% Discouraged Workers 970 6% Partially Unemployed Workers 530 3% TOTAL 16,830 100% Source: Tennessee Department of Labor and Workforce Development, 3/10

Demographics

Chattanooga MSA* Population Growth Year Population Households 1990 Census 433,194 166,400 2000 Census 476,531 189,607 2010 Estimate 525,357 209,218 2015 Projection 548,366 220,810 Growth % 2000-2010 10.2% 10.3% Source: U.S. Census, DemographicsNow

Chattanooga MSA* Population by Age and Gender Age Female MaleTotal 14 and under 17.8% 20.1% 18.9% 15-24 12.3% 13.3%12.8% 25-34 12.4% 13.3%12.8% 35-44 12.9% 13.2%13.0% 45-54 14.4% 14.3%14.5% 55-64 13.2% 12.7%13.0% 65 and over 17.1% 13.1% 15.1%

Median Age 39.3 years Total Population 20-64 59.6% Source: DemographicsNow

Chattanooga MSA* Population by Race White 82.5% Black 13.7% Asian/Pacific Islander 1.4% Two or More Races 1.4% Some Other Race 0.9% American Indian/Alaska Native 0.2% Source: DemographicsNow

Chattanooga MSA* 25 Years and Older by Education Level Educational Attainment 2010 High school graduate or higher 83.1% Some college or higher 51.5% Two-year degree or higher 28.6% Four-year degree or higher 21.9% Source: DemographicsNow

Jobs in Chattanooga MSA* by Place of Employment Annual average employment in thousands

2005 2006 2007 2008 2009 Goods-Producing 45.9 46.9 45.8 43.9 36.9 Mining, Logging & Construction 10.7 11.5 11.0 10.6 8.7 Manufacturing 35.2 35.5 34.9 33.3 28.3 Durable Goods Manufacturing 16.1 16.5 16.3 15.3 12.7 Nondurable Goods Manufacturing 19.1 18.9 18.6 17.9 15.6

Service-Providing Service-Providing 194.9 198.6 201.7 202.0 190.2 Trade, Transportation, and Utilities 56.2 56.1 56.4 54.8 48.1 Wholesale Trade 8.8 8.8 8.8 8.9 8.2 Retail Trade 26.8 26.7 26.9 26.2 24.4 General Merchandise Stores 6.1 6.6 6.9 6.4 n/a Transportation and Utilities 20.6 20.6 20.8 19.7 15.6 Information 2.8 3.3 3.7 3.8 3.7 Financial Activities 18.8 18.6 18.6 18.5 18.0 Professional and Business Services 25.7 26.1 24.8 25.5 21.7 Educational and Health Services 24.8 26.8 29.2 30.0 30.4 Leisure and Hospitality 21.9 22.8 23.2 23.3 22.7 Accommodation and Food Services 19.2 20.2 20.7 20.6 n/a Other Services 10.7 10.8 10.9 10.9 10.8 Government 34.2 34.1 34.9 35.2 34.8 Federal Government 6.4 6.3 6.5 6.1 5.8 State and Local Government 27.8 27.8 28.4 29.1 29.0 State Government 5.9 5.9 6.0 6.0 6.1 Local Government 21.9 21.9 22.4 23.1 22.9 TOTAL 240.8 245.5 247.5 245.8 227.2 Source: Bureau of Labor Statistics

Growth – Chattanooga area July 2003-to-date Fiscal 09-10 only New Plants and Expansions 196 25 New Jobs 14,585 1,169 New Investment $3,142,980,550 $60,780,000 Source: Projects announced in the newspaper or reported to the Chattanooga Chamber

Employment Costs Average Wages by Sector – Hamilton County (2009) Avg. Weekly Wage Avg. Annual Wage Manufacturing $905 $47,035 Construction $886 $46,066 Trade, Transportation & Utilities $634 $32,954 Financial Activities $1,143 $59,421 Information $826 $42,947 Retail Trade $496 $25,805 Wholesale Trade $982 $51,062 Professional & Business Services $729 $37,887 Education & Health Services $847 $44,047 Other Services $548 $28,509 Leisure & Hospitality $297 $15,419 TOTAL AVERAGE $761 $39,569 Source: U.S. Department of Labor, Bureau of Labor Statistics Note: Average weekly and annual wage figures do not include any benefits.

Source: Tennessee Department of Labor and Workforce Development, Workers’ Compensation Division

Source: Tennessee Department of Labor and Workforce Development, Employment Security Division

Labor Market Characteristics

Union Membership – percentage of union membership in the workforce City Private Sector Mfr. Private Sector TOTAL Chattanooga 2.6 2.8 3.5 Atlanta 3.2 3.0 4.5 Birmingham 16.2 6.0 9.0 Cincinnati 15.3 7.3 9.6 Indianapolis 6.4 4.5 7.6 Kansas City 21.9 6.8 8.6 Louisville 21.4 10.7 13.3 Memphis 1.5 2.1 4.8 Nashville 11.8 3.2 5.1 St. Louis 21.5 10.9 13.6 Source: Union Membership & Earnings Data Book (2010 edition), Bureau of National Affairs, Inc.

Note: Private sector is defined as both private for-profit and not-for-profit companies. The total includes both private and public companies. Public companies are defined as federal (including postal), state, or local government.

Metro Area Work Stoppage Trends Year TOTAL 2005 0 2006 0 2007 0 2008 0 2009 0

Union Elections Year TOTAL Union Win Union Loss Unresolved1 2005 4 1 1 2 2006 4 3 0 1 2007 5 0 2 3 2008 1 1 0 0 2009 2 1 1 0 TOTAL 16 6 4 6 Source: Bureau of National Affairs, Inc. 1 petitions were cancelled / withdrawn

Tennessee is a “right-to-work” state: To be hired for any job in the state of Tennessee, it is not mandatory to be a member of a union or to join a union at any time after employment.

*Metropolitan Statistical Area (MSA) includes Hamilton, Marion and Sequatchie counties in Tennessee and Catoosa, Dade and Walker counties in Georgia.

Economy

Businesses in the Chattanooga MSA* Chattanooga’s diverse economy is strong. In the MSA*, nearly 23,000 businesses employ over 200,000 people and generate nearly $30 billion in annual sales.

Manufacturing The manufacturing sector has over 1,200 companies in 19 industry segments. MSA* manufacturing companies employ over 34,000 people and generate nearly $3 billion in annual sales.

Finance, Insurance & Real Estate The finance, insurance and real estate (FIRE) sector has nearly 2,000 companies in seven industry segments. MSA* FIRE companies employ nearly 15,000 people and generate almost $17 billion in annual sales.

SIC 2 Digit Business Total Total Sales Code Count Empl. (in $ millions) 60 Depository Institutions 174 1,609 472.5 61 Non-depository Credit Institutions 149 1,290 43.5 Security & Commodity Brokers, 62 Dealers, Exchanges & Services 100 453 13.2 63 Insurance Carriers 71 5,210 14,908.9 64 Insurance Agents, Brokers and Service 356 1,644 131.7 65 Real Estate 881 4,026 231.3 67 Holding and Other Investment Offices 172 758 1,148.2 TOTAL 1,903 14,990 16,949.4 Source: Dun & Bradstreet ZapData; data as of 8/10

Services The services sector has over 11,000 companies in 15 industry segments. MSA* service companies employ over 82,000 people and generate nearly $5 billion in annual sales.

SIC 2 Digit Business Total Total Sales Code Count Empl. (in $ millions) 70 Hotels, Rooming Houses, Camps, & Other Lodging Places 174 2,715 95.2 72 Personal Services 985 4,401 98.9 73 Business Services 3,809 14,640 931.6 75 Automotive Repair, Services and Parking 630 3,902 323.3 76 Miscellaneous Repair Services 411 1,882 171.9 78 Motion Pictures 94 421 12.6 79 Amusement and Recreation Services 336 2,677 133.2 80 Health Services 1,301 20,374 1,493.8 81 Legal Services 413 1,902 129.5 82 Educational Services 301 12,475 448.8 83 Social Services 450 4,214 162.7 84 Museums, Art Galleries & Botanical & Zoological Gardens 27 421 12.8 86 Membership Organizations 1,127 5,253 282.5 Engineering, Accounting, Research, 87 Management & Related Services 1,032 7,042 390.1 89 Services, Not Elsewhere Classified 211 542 24.9 TOTAL 11,301 82,861 4,711.8 Source: Dun & Bradstreet ZapData; data as of 8/10

Transportation, Communication and Public Utilities The transportation, communication and public utilities (TCU) sector has nearly 1,000 companies in 10 industry segments. MSA* TCU companies employ over 16,000 people and generate nearly $2 billion in annual sales.

SIC Business Total Total Sales 2 Digit Code Count Empl. (in $ millions) 40 Railroad Transportation 6 98 0.3 41 Local, Suburban Transit & Interurban Hwy Passenger Transport 42 639 13.9 42 Motor Freight Transportation 370 6,048 892.0 43 United States Postal Service 36 1,049 N/A 44 Water Transportation 21 463 3.2 45 Transportation by Air 25 202 17.1 46 Pipelines, Except Natural Gas 7 46 0.3 47 Transportation Services 148 1,013 102.1 48 Communications 156 1,929 65.3 49 Electric, Gas and Sanitary Services 111 5,277 599.3 TOTAL 922 16,764 1,693.4 Source: Dun & Bradstreet ZapData; data as of 8/10

Retail The retail trade sector has over 4,000 companies in 8 industry segments; MSA* retail companies employ more than 43,000 people and generate over $1 billion in annual sales.

SIC Business Total Total Sales 2 Digit Code Count Empl. (in $ millions) 52 Building Materials, Hrdwr, Garden Supply & Mobile Home Dealers 218 2,238 136.0 53 General Merchandise Stores 138 5,225 4.5 54 Food Stores 470 5,621 93.8 55 Automotive Dealers & Gasoline Service Stations 608 4,191 515.1 56 Apparel and Accessory Stores 267 1,955 36.6 Home Furniture, Furnishings & 57 Equipment Stores 418 2,318 175.1 58 Eating and Drinking Places 892 13,383 168.8 59 Miscellaneous Retail 1,256 8,496 358.0 TOTAL 4,267 43,427 1,487.9 Source: Dun & Bradstreet ZapData; data as of 8/10

Wholesale Trade The wholesale sector has over 1,300 companies, nearly 1,000 in durable goods, and more than 400 in non-durable. MSA* wholesale trade companies employ more than 13,000 people and generate nearly $2 billion in annual sales.

SIC 3 Digit Business Total Total Sales Code Count Empl. (in $ millions) 501 Motor Vehicles, Parts and Supplies 101 1,266 165.2 502 Furniture and Home Furnishings 58 362 53.2 503 Lumber and Other Construction Materials 86 1,381 62.3 504 Professional & Commercial Equipment & Supplies 124 883 75.2 505 Metals and Minerals (except Petroleum) 23 563 432.3 506 Electrical Goods 94 757 125.3 507 Hardware & Plumbing Equipment & Supplies 79 639 70.0 508 Machinery, Equipment and Supplies 250 1,889 195.7 509 Miscellaneous Durable Goods 132 912 107.4 SUBTOTAL 947 8,652 1,286.6

SIC 3 Digit Business Total Total Sales Code Count Empl. (in $ millions) 511 Paper & Paper Products 34 186 13.8 512 Drugs, Drug Proprietaries and Sundries 17 87 25.9 513 Apparel, Piece Goods and Notions 24 148 10.8 514 Groceries & Related Products 79 2,249 128.6 515 Farm-Products Raw Materials 9 100 2.3 516 Chemicals & Allied Products 51 388 28.3 517 Petroleum & Petroleum Products 44 295 66.0 518 Beer, Wine & Distilled Alcoholic Beverages 15 255 38.5 519 Miscellaneous Non-Durable Goods 161 1,003 68.0 SUBTOTAL 434 4,711 382.2 TOTAL 1,381 13,363 1,668.7 Source: Dun & Bradstreet ZapData; data as of 8/10

Construction The construction sector has over 2,000 companies in 3 industry segments. MSA* construction companies employ over 13,000 people and generate nearly $2 billion in annual sales.

SIC 2 Digit Business Total Total Sales Code Count Empl. (in $ millions) 15 Building Construction - General Contractors & Operative Builders 924 3,638 1,073.3 16 Heavy Construction, Except Building Construction - Contractors 97 1,253 138.3 17 Construction - Special Trade Contractors 1,240 8,673 642.2 TOTAL 2,261 13,564 1,853.8 Source: Dun & Bradstreet ZapData; data as of 8/10

*Metropolitan Statistical Area (MSA) includes Hamilton, Marion and Sequatchie counties in Tennessee and Catoosa, Dade and Walker counties in Georgia.

Education

Public education for over 39,000 primary and secondary students is currently provided by over 75 public schools. Nearly 11,000 students are enrolled in the 34 private and parochial schools in the Chattanooga area. More than 15 institutions of higher learning offer diverse curricula which include the humanities as well as vocational training and technical education.

Public Schools

College Entrance Exam Scores (2009) ACT SAT Hamilton County Schools 19.0 -- Tennessee 20.6 1,701 National Average 21.1 1,509 Source: Tennessee Department of Education

Non-Public Schools

Total Number of Schools 34* Total Student Enrollment 10,813* Source: Hamilton County Department of Education Comprehensive Annual Financial Report

*Number does not include Special School or Home School Data

Post Secondary Education There are several colleges and universities in the Chattanooga area offering associates, bachelors, and masters degrees. Course offerings include liberal arts, business, science and technology, criminal justice and engineering.

Colleges and Universities

The University of Tennessee at Chattanooga (UTC) The University of Tennessee at Chattanooga is a major campus of the Tennessee system. UTC offers more than 40 undergraduate, 19 graduate, 1 specialist’s and 3 doctorate degree programs.

The University is divided into the following colleges and schools:

Arts and Sciences Business Administration Education and Applied Professional Studies Engineering and Computer Science Health Education and Professional Studies School of Nursing School of Rehabilitation Professions School of Social and Community Services

Enrollment: 10,526 Athletics: NCAA Division I Football – NCAA Division I-AA Academics: The University has 21 state-funded chairs of excellence occupied by leading scholars and 5 centers of excellence dedicated to scholarship and research in:

Egyptian art and archeology Psychology Education Earthquake Science Speech and Hearing

Chattanooga State Technical Community College Chattanooga State is a comprehensive, regionally accredited community college in the State University and Community College System of Tennessee. The College offers programs in the following fields:

Allied Health Business and Information Engineering, Environmental & Emergency Technologies Humanities Industrial Technology Math and Science Social and Behavioral Science

Chattanooga State offers over 50 majors of study toward degrees and certificates.

Enrollment: 11,740

Services for Business and Industry: Chattanooga State’s Business and Community Development Center (BCDC) provides customized training for business, industry and government in the Chattanooga area.

Other Colleges in the Chattanooga MSA* include:

Covenant College  Four-year liberal arts college affiliated with Presbyterian Church in America  Founded in 1955  Enrollment – 1,006  Mountaintop campus 10 minutes from Chattanooga

Southern Adventist University  Four-year private university affiliated with the Seventh-day Adventist Church  Founded in 1892  Enrollment – 2,891  Rural campus 18 miles from Chattanooga

Tennessee Temple University  Four-year private college of arts and sciences and Bible college affiliated with Independent Baptist Church  Founded in 1946  Enrollment – 505  Urban campus in Chattanooga

*Metropolitan Statistical Area (MSA) includes Hamilton, Marion and Sequatchie counties in Tennessee and Catoosa, Dade and Walker counties in Georgia.

Utilities & Telecommunications

The Chattanooga region is in an enviable position relative to other locations in the U.S. Both electricity and natural gas are available in plentiful supplies and at some of the most reasonable rates found anywhere. In addition, water supplies are abundant and sewage treatment is available throughout the region, with considerable excess capacity to support industrial expansion.

Electricity

EPB of Chattanooga distributes electricity from the Tennessee Valley Authority (TVA), a federal agency that sells electricity to hundreds of other distributors. EPB has provided reliable, affordable electric power to the Chattanooga-area business community for over 60 years

EPB of Chattanooga offers Enhanced Growth Credits, as well as other services designed to enhance efficiency for commercial and industrial customers. Services include: power quality analysis, energy audits, power factor correction recommendations, energy monitoring and management systems, lighting recommendations and more.

Key business customers also have direct access to EPB's staff of energy service professionals, who provide commercial and industrial customers with the utility expertise and solutions they need to operate their business.

EPB of Chattanooga Communities Served Hamilton County, parts of 8 counties in TN & GA Company-Net Importer or Exporter of Power Import Name of Power Pool Membership TVA Peak System Demand 1366 State Electric Power Deregulated No

Number of Customers 2004 2005 2006 2007 2008 Residential 140,305 141,521 144,346 143,798 147,095 Commercial/General Service 22,898 23,601 22,746 22,796 22,822 Comm./Ind. 5,000+ kW demand 14 14 15 21 24

Natural Gas

In the Chattanooga area, natural gas is supplied to customers from both private and public utilities. The Chattanooga Gas Company, with sales of over 17 billion cubic feet annually, is supplied by the pipelines of Southern Natural Gas and East Tennessee Natural Gas.

Industrial Base Rate PGA Refunds & Billing Rate Cumulative PGA/ Large Volume Firm Rates Surcharges Refund & Credit Base Use Charge $300.0000 $300.0000 Demand Charge/Demand Unit $5.50 $6.9649 0.3749 $12.8398 $7.3398 Commodity Charge/Dth First 1,500 Dths $0.8064 $7.8849 (0.3273) $8.3640 $7.5576 Next 2,500 Dths $0.6891 $7.8849 (0.3273) $8.2467 $7.5576 Next 11,000 Dths $0.3908 $7.8849 (0.3273) $7.9484 $7.5576 Over 15,000 Dths $0.2402 $7.8849 (0.3273) $7.7978 $7.5576

Industrial Base Rate PGA Refunds & Billing Rate Cumulative PGA/ Interruptible Service Rates Surcharges Refund & Credit Base Use Charge $300.0000 $300.0000 Commodity Charge/Dth First 1,500 Dths $0.8064 $5.5807 (0.3273) $6.0598 $5.2534 Next 2,500 Dths $0.6891 $5.5807 (0.3273) $5.9425 $5.2534 Next 11,000 Dths $0.3908 $5.5807 (0.3273) $5.6442 $5.2534 Over 15,000 Dths $0.2402 $5.5807 (0.3273) $5.4936 $5.2534

(March 2009)

Natural Gas Incentive Programs

Chattanooga Gas Company (CGC) offers very competitive gas delivery rates to industrial customers who use a minimum of 100 Dth/day. CGC is served by two interstate pipeline suppliers, East Tennessee and Southern Natural Gas, who offer competitive interstate transportation rates to industrial end-users. CGC industrial customers can purchase their natural gas through CGC or from a third party marketer.

To further minimize gas costs to large industrial customers, CGC offers an interruptible delivery rate to customers who have installed an alternate fuel. The interruptible rate is a declining step rate which reduces to a low rate of $0.2420/Dth for consumption over 15,000 Dth/month. During curtailments, CGC may offer an incremental gas supply that provides interruptible customers with another option in lieu of switching to their alternate fuel. This program has minimized the interruptions/gas curtailments experienced by CGC industrial customers.

CGC also has a special sales program (SS-1) to compete with alternate fuels when that pricing is lower than natural gas. CGC can discount transportation rates to match fuel oil costs or other competitive energies.

Overall, CGC industrial customers benefit from highly competitive natural gas rates available through CGC’s menu of delivery rates and supply services.

Source: Chattanooga Gas Company

Water Water service for the Chattanooga area is provided primarily by three separate water distribution companies.

Eastside Utility District Major Source Tennessee River Rated Capacity 16 mgd Average Daily Demand 6.89 mgd Peak Demand 9.28 mgd Avg. Cost per 1,000 Gallons $3.08 Water Connection Fee $325.00 – ⅝” meter $375.00 – 1” meter

Hixson Utility District Major Source Tennessee River Rated Capacity 20 mgd Average Daily Demand 6.86 mgd Peak Demand 10.67 mgd Avg. Cost per 1,000 Gallons $1.63 Water Connection Fee New and Existing Service – $25.00

Tennessee American Water Company Major Source Tennessee River Rated Capacity 65.0 mgd Average Daily Demand 39.233 mgd Peak Demand 56.000 mgd Avg. Cost per 1,000 Gallons Residential – $3.850 Commercial – $3.2581 Industrial – $1.4665 Public Authority – $2.6379 Water Connection Fee New Service – $25.00 Existing Service – $15.00 Source: Individual Utilities

Wastewater Primary and secondary sewage treatment is available in the Chattanooga area. The Moccasin Bend Sewage Treatment Plant has a capacity of 140 million gallons-per-day, with a peak hydraulic capacity of 220 million gallons-per-day. Significant capacity exists in the system to support growth.

Source: City of Chattanooga

Utility Tax

Gas and Electric Rate State (%) Local (%) Total (%) Residential None None None Non-Manufacturer* 7.0 None 7.0 Manufacturer** 1.5 None 1.5

Water Tax Rate State (%) Local (%) Total (%) Residential 7.0 2.25 9.25 Non-Manufacturer* 7.0 2.25 9.25 Manufacturer** 1.0 0.5 1.5

*Non-Manufacturers may be exempt (churches, non-profit organizations, etc.).

**Manufacturers can be granted a full exemption if the energy fuel or water comes in direct contact with the product being manufactured and it is separately metered.

An Industrial Machinery Authorization must be on file with the utility company to support the exemption or reduced rate. An Industrial Machinery Authorization may be obtained by filing an application with the Tennessee Department of Revenue.

Business Support Services

EPB Incentive Programs In addition to having rates significantly below the national average, EPB of Chattanooga offers several electric power incentives and special rate programs to qualified businesses locating or expanding in the Chattanooga area. All of the following EPB incentives and special rate programs are designed to enhance customer efficiency and boost their bottom line:

• Enhanced Growth Credit offers credits on electric bills to businesses locating or expanding in the EPB service area. This credit is available to new, restarted and expanding loads greater than 100 kW in manufacturing and other specified SIC codes. It provides credits of up to $6.00/kW on firm demand charges.

• Manufacturing Credit encourages growth in the manufacturing sector by offering significant power cost savings to qualifying manufactures which in turn helps retain manufacturing load in the Tennessee Valley region.

EPB of Chattanooga works hard to deliver not only power, but total business solutions through Value Added Services which offer customers money-saving ideas at no charge. EPB will assist all commercial and industrial customers in the EPB service area with the following options:

• Power Quality Analysis provides a detailed, technical analysis of a customer’s internal electrical system. Utilizing state-of-the-art test equipment, potentially harmful problems caused by today’s sophisticated, high-speed electronic equipment can be easily identified.

• Power Factor Correction Recommendations Through careful analysis of the electrical system, EPB can provide a comprehensive report that includes recommended correction equipment, suitable installation locations and the cost of not correcting the power factor.

• Harmonic Analysis helps to prevent equipment malfunctions in facilities by using sensitive power test equipment that analyze the amount of harmonic distortion in a power system and determines its source. Once the problem is identified, EPB will recommend the size and location of filtering equipment to mitigate the specific harmonic that is causing the trouble.

• Lighting Recommendations can be provided for lighting layouts, specifications, mounting heights, placement and aiming techniques.

• Compressed Air Leak Detection EPB helps companies locate leaks in an air, steam, vacuum or water systems allowing the business to keep machines operating at the highest possible efficiency levels.

• HVAC Studies can be conducted on new or existing equipment to help improve heating and air conditioning circulation and efficiency, and save money on monthly bills.

• Energy Monitoring and Management Systems EPB provides technical recommendations and assistance on energy monitoring options including revenue control strategies and energy management systems.

• Energy Audits project potential savings that could result from the installation of recommended devices or systems, or from the modification of building operations or building shell.

Source: EPB of Chattanooga

Telecommunications

The telecommunications infrastructure available in Chattanooga is state-of-the-art. Both traditional and competitive local exchange carriers provide service. Multiple fiber networks serve downtown areas.

Number of Local Service Providers 6

Central Offices of Local Service Providers 10

Is Switch Technology Digital or Analog? Digital

Is Fiber Service Provided? Fiber services are available at any location within the AT&T service area at no cost with the purchase of a fiber-based service.

Monitored Remotely or On-Site? Remotely from Nashville, TN and Charlotte, NC

Is ISDN Available from this Switch? Yes

Is ASD2 Available from this Switch? Yes

Is Central Office on Self-Healing Fiber Ring? Yes

Dual Feed from Two Separate Separate channels available into all Switching Offices Available? central offices.

Chattanooga’s Communications Advantages:

 Digital switching centers with computerized switching technology that provides modern services based on digital technology.

 SONET transport technology is available in Chattanooga.

 An area rich with fiber optic bandwidth, with more than 40,000 miles of fiber optic cable and more being constructed continuously.

 Fiber and digital networks provide greater security, higher transport speeds and clearer transmission for critical communication needs.

 Integrated Services Digital Network (ISDN) is available everywhere in Chattanooga.

 ADSL (over 100,000 lines are ADSL qualified in Chattanooga).

 Common Channel Signaling technology provides a wide variety of intelligent network services to improve business productivity and efficiency.

 Chattanooga has multiple points of presence for all major long distance and local carriers.

Source: AT&T

Transportation

Air Travel Air service at the Chattanooga Metropolitan Airport is provided by a number of carriers offering passenger and cargo service to all major cities in the U.S. Additionally there is one-stop service to Europe and Asia through each of the carriers supporting Chattanooga.

Commercial service is provided by: Allegiant Air American Eagle Delta Connection Carriers Northwest Airlink US Airways Express General aviation and private aircraft service provided by TAC Air.

Nonstop flights to: Atlanta, GA – Delta Connection Carriers Charlotte, NC – US Airways Express Chicago, IL – American Eagle Dallas, TX – American Eagle Ft. Lauderdale – Allegiant Air Memphis, TN – Northwest Airlink Orlando, FL – Allegiant Air Tampa Bay, FL – Allegiant Air Washington, DC – US Airways Express

Runways East/West –7,400 feet North/South – 5,000 feet

Instrument Landing System

Air Cargo Emery WorldWide, RPS and UPS all have regional facilities in Chattanooga.

Rail Transportation Systems serving Chattanooga are CSX Corporation and Norfolk Southern. Both systems offer daily switching.

Public Use Port Terminals Chattanooga is accessible to over 16,000 miles of navigable waterways connecting to the Gulf of Mexico and the Great Lakes. The Tennessee River has a channel depth of nine feet.

Centre South Riverport Handling Ability: Dry Bulk Unload, Liquid and Rail Cars Facilities: Loading docks, mooring cells and crane Rail: Norfolk Southern Water Frontage: 400 feet Depth: Approx. 14 feet Operator: Parker Towing 359 River Terminal Road Chattanooga, TN 37422 Phone: 423-698-7727 Fax: 423-698-0146 http://www.parkertowing.com/services/steve.asp

JIT Terminals Inc. a Mapes & Sprowl Steel Company Handling Ability: Dry Bulk Unload, Liquid and Rail Cars Facilities: Loading docks, mooring cells and crane Rail: Norfolk Southern Water Frontage: 500 feet Depth: Approx. 14 feet Operator: JIT Terminals Inc. 530 Manufacturers Rd. Chattanooga, TN 37405 Phone: 423-266-1600 Fax: 423-267-4297 http://www.jitterminal.com/

Mid-South Terminals Handling Ability: General freight transfer Facilities: Loading docks, mooring cells and crane Rail: Norfolk Southern Water Frontage: 1,600 feet Operator: Serodino Inc. 100 Hamm Road Chattanooga, TN 37405 Phone: 423-266-1855 http://www.serodinoinc.com/Mid%20South%20Info.html

Major Industrial Parks and Distribution Centers with available space include: Bonny Oaks Industrial and Office Park Bonnyshire Industrial Park Centre South Park and Riverport Enterprise South Industrial Park

Major U.S. Rail Connections

Spokane Great Falls Seattle Bismark Billings Portland Minneapolis St. Paul Bangor Boise Milwaukee Buffalo Chicago Detroit Albany Omaha Boston Salt Lake City Cheyenne Des Moines Peoria Pittsburgh Harrisburg New York Denver Philadelphia Kansas City Indianapolis Baltimore Atlantic City Washington Sacramento St. Louis Louisville San Francisco Wichita Richmond Roanoke Norfolk Las Vegas Knoxville Memphis Albuquerque Oklahoma Charlotte City Little Rock CHATTANOOGA Morehead City Columbia Wilmington Los Angeles Phoenix Birmingham Atlanta San Diego Fort Worth Dallas Macon Charleston Tucson El Paso Jackson Montgomery Savannah Brunswick Jacksonville Houston Mobile San Antonio Galveston New Orleans Tampa Laredo St. Petersburg Brownsville Miami

Navigable Waterways

Interstate Highway System

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Incentives for New and Expanding Businesses

Tennessee has long been considered a state with one of the most business friendly economic climates in the nation, with one of the nation’s lowest per capita tax burdens, no tax on personal income and no state property tax.

Tennessee does not take a “one size fits all” approach and evaluates and changes its incentive offerings annually to meet the needs of business in the current economic environment. The primary business taxes in Tennessee are the franchise tax and the excise tax (F&E). Tennessee’s largest single source of revenue is the sales and use tax.

Franchise Tax Excise Tax

o Tax on the greater of net worth or book value of property o Tax is based on the net earnings of the owned or used in Tennessee. company derived from doing business in o Tax rate is 25¢ per $100. Tennessee. o Finished goods inventory in excess of $30 million may be o Tax rate is 6.5% excluded. o No throwback provision – sales outside of o Pollution Control Equipment is exempt. Tennessee are not taxed. o Property under construction and not being utilized is not o All capital losses are claimed in the year included. incurred o Property rented from the industrial development o Net operating losses can be carried forward corporation may be valued by capitalizing it on the books. for 15 years. o Tennessee exempts will exempt two thirds (2/3) of the o Net operating losses for projects of over capital investment of companies qualifying for the Jobs Tax $100 million may be extended beyond 15 Super Credit. years.

Sales and Use Tax No Sales Tax Is Levied On:

7% state sales tax plus the o Purchases, installation and repairs of qualified industrial machinery applicable local rate (2.25%‐2.75%) o Raw materials for processing on any person or company who o Pollution control equipment for manufacturers manufactures, distributes or sells o Reduced sales tax rates for manufacturers’ use of energy fuel and water tangible personal property within (1.5% vs. 7%) the state. o Qualified industrial supplies

State of Tennessee Tax Credits

Jobs Tax Credit Tennessee allows “qualified business enterprises” a credit against their franchise and excise taxes based on their capital investment and the number of jobs created. The amount of the credit and the period of time during which it can be used varies according to the size of the investment.

 A company investing $500,000 and creating 25 new jobs can claim a $2,000 credit (or $4,500 if locating in an economically distressed county) against their F&E taxes over a period of 15 years.

 Qualified business enterprises must meet the $500,000 investment and 25 job threshold in a fiscal year if locating in a non-distressed or Tier 1 county (see map). Businesses locating in a Tier 2 county may take three years to create 25 jobs or five years to create 25 jobs in a Tier 3 county.

 The company can qualify for a $4,500 Jobs Tax Credit if it invests $20 million in capital and creates a minimum of 1,000 jobs in a federally designated empowerment zone. Currently, Tennessee’s only federally designated empowerment zone is in Knoxville, TN.

 The percentage of tax liability companies are able to offset ranges from 33.33% to 100% based on the total number of full-time jobs in Tennessee at the end of the fiscal year, ranging from less than 1,000 to 5,000 or more.

For example, in Chattanooga @ $2,000 per job:

Jobs Created Amount of Credit Full-Time TN Jobs Percentage Offset 25 $50,000 75 33.33% 100 $200,000 999 33.33% 500 $1,000,000 1,100 50% 999 $1,998,000 3,000 75% 1,000 $2,000,000 5,100 100%

State law gives the commissioner of Revenue and the commissioner of Economic and Community Development broad latitude to extend the offset percentage to 100% for qualified headquarters and/or qualified warehouse and distribution facilities.

Qualified business enterprises can include:

 Manufacturing  Qualified Data centers  Warehousing and distribution  Headquarters facilities  Processing tangible personal property  Convention or trade show facilities  Research and development  Repair service facilities for aircraft  Computer services owned by unrelated commercial,  Call centers foreign or government persons

Jobs Tax Super Credit For larger, more capital intensive investments, Tennessee has created a Super Credit which applies to those companies investing capital of $100 million or more and creating a minimum of 100 jobs paying at least 100% of Tennessee’s average occupational wage. These credits can be used to offset up to 100% of the companies F&E tax liability, but must be taken in the first tax year after the job creation and capital investment thresholds have been met and can be taken annually. The Super Credit does not include carry-forward provisions and is available in addition to Jobs Tax Credits.

The Super Credit allows companies to exempt two thirds (2/3) of the required capital investment on Schedule G of the company’s franchise and excise tax return. Investments must be made during a 3- year period, but can be extended to 5 years (or in the case of a $1 billion investment, 7 years) at the discretion of the Commissioner of Economic and Community Development.

Super Credits are available at the following levels:

Captial Investment Jobs Created Size of Credit* Years Available $100 million 100 $5,000 3 $250 million 250 $5,000 6 $500 million 500 $5,000 12 $1 billion** 1,000 $5,000 20

*per job per year **Projects qualifying in this category must create jobs paying 150% of the state’s average occupational wage.

Integrated Supplier Tax Credit Tennessee extends certain tax credits to suppliers located within the footprint of a project meeting the $1 billion investment threshold and creating 1,000 or more jobs. The purpose of the Integrated Supplier Tax Credit is to expand the impact of large “anchor” projects by encouraging co-location of suppliers. A qualified supplier locating within the footprint of such a project will qualify for a Jobs Tax Super Credit equal to $5,000 per qualified job with a 15 year carry-forward, plus an additional $5,000 per job each year for six years. The Integrated Supplier Tax Credit applies regardless of capital investment or number of jobs created.

Industrial Machinery Tax Credit For capital investments in industrial machinery, Tennessee offers qualified businesses a tax credit offsetting up to 50% of their F&E tax liability. To qualify for this credit, companies are not required to create new jobs. The credit applies to the purchase, installation and repair of industrial machinery as defined in T.C.A. 67-6-102. The credit also applies to the purchase and installation of computer, computer software and certain peripheral devices purchased in order to meet the capital investment thresholds of the Jobs Tax Credit. The Industrial Machinery Tax Credit has a 15 year carry-forward.

Captial Investment Percentage of Credit Less than $100 million 1% $100 million 3% $250 million 5% $500 million 7% $1 billion** 10%

Headquarters Tax Credit In order to encourage companies to locate their corporate headquarters in Tennessee, the state offers tax credits based on the cost of relocating the company and building a new headquarters facility in Tennessee.

 With a capital investment of $50 million or more, the company may qualify for a credit of 6.5% against sales and use taxes incurred on the purchase of building materials, machinery or equipment used in a new regional, national or international headquarters.

 A project involving a capital investment of $10 million or more and creating 100 jobs paying 150% of the state’s average occupational wage may qualify for a credit of 6.5% against sales and use taxes incurred on the purchase of building materials, machinery or equipment used in a new regional, national or international headquarters.

 Investments must be made during a 3-year period, but can be extended to 5 years (or in the case of a $1 billion investment, 7 years) at the discretion of the Commissioner of Economic and Community Development.

 Companies qualifying for the sales and use tax credit may also qualify for credits against their F&E tax liability based on the amount of qualified relocation expenses incurred in the establishment of a headquarters facility. This is a fully refundable tax credit.

 Companies with a regional, national or international headquarters facility in Tennessee may (with approval from the Commissioner of Revenue and the Commissioner of Economic and Community Development) convert unused net operating losses (NOL) to a credit against F&E tax liability.

 The NOL credit is available only if the company is unable to use the NOL to offset net income during the current tax year.

 Credits for the cost of relocating jobs paying at least 150% of Tennessee’s average occupational wage are available on a tiered schedule as follows:

Captial Investment Percentage of Credit 100‐250 jobs 1% 250‐500 jobs 3% 500‐750 jobs 5% 1,000+ jobs* 7%

* requires capital investment of at least $1 billion

Data Center Tax Credit Companies may obtain tax credits for the purchase of materials related to the construction of a data center, which is defined as a building or buildings housing high technology computer systems and related equipment if they create 25 new jobs paying at least 150% of the state’s average occupational wage and invest a minimum of $250 million in capital.

 The purchase of computers, computer systems and repair parts used in qualified data centers are exempt from sales and use taxes (these purchases are classified as industrial machinery).

 Qualified data centers will also pay reduced sales taxes on the purchase of electricity (1.5% vs. the previous rate of 7%).

 The purchase of computers, computer systems and repair parts for a qualified data center allows companies to qualify for a 1%-10% tax credit against F&E liability under the Industrial Machinery Tax Credit.

Emerging Industry Tax Credits Tennessee law gives the Commissioner of Revenue and the Commissioner of Economic & Community Development broad latitude in classifying certain projects as part of an emerging industry. If companies can demonstrate a strong growth potential and commit to creating jobs which pay above the county’s average occupational wage, the state may waive the threshold of 25 new jobs created in order to qualify for the Jobs Tax Credit.

Daycare Facility Tax Credit In order to encourage the construction of daycare facilities, the state of Tennessee offers companies a tax credit against their F&E tax liability equal to the cost of 25% of the construction of a facility with a cost not to exceed $100,000 per facility and a tax credit not to exceed $25,000 per facility.

State of Tennessee Incentives

FastTrack Arguably, Tennessee’s most utilized tool to assist communities in attracting new jobs. FastTrack focuses on assisting companies in the training of new employees and helping communities in the development of public infrastructure which assists companies in their expansion or relocation. Taken together, these programs are known as FastTrack. Along with the Tennessee Job Skills program, FastTrack streamlines and speeds the process and reduces the cost for companies seeking to create jobs.

FastTrack Job Training Assistance (FJTAP) This incentive is available to both new and expanding industry and begins with a company developing a training plan including the number of people to be hired, types of skills required and types of training needed. The plan is developed in conjunction with the FastTrack staff and is designed to be customizable and flexible. Companies will track costs associated with implementation of the training program, then submit to the state for reimbursement.

Training may include:  Classroom instruction  On-the-job training  Vendor training from the actual manufacturer of a piece of industrial equipment  System support for certain types of plant-wide or company-wide applications  Development and coordination of instructional materials and training programs  Travel related to training

A potentially faster program for reimbursement of training costs, companies may seek reimbursement from the state of Tennessee once a job creation commitment and cost-per-job is established. In order to qualify, companies must work with ECD to reach a contractual agreement which determines the cost per job and the total commitment of jobs.  Once agreed upon with ECD, companies can seek reimbursement of 50% of the cost per job within the first 90 days after the job is created. The remaining 50% can be claimed 180 days after the job is created.  The company must agree to provide documentation including the number of jobs created and the wages paid for each job.  Multi-year contracts between a company and ECD can be reached to accommodate multi- year job creation projects.  If the total commitment of jobs is reached, companies may seek the entire training reimbursement allocation through ECD.

Tennessee Job Skills Similar to FJTAP, but with a focus on employers and industries which create high skill, high wage jobs in emerging, high-demand and technology focused sectors of the economy. Training staff will work with companies to develop a unique, flexible, comprehensive training plan which meets the company’s initial training needs and will then follow up to insure each phase of the program meets the company’s needs. Companies track costs and apply to the state for reimbursement. Reimbursement rates depend on the level of training and the types of instructors utilized.

Applicant Recruitment and Screening Utilizing the company’s job specifications, the Tennessee Department of Labor and Workforce Development will recruit and screen job applicants through the department’s Job Service Division. Those applicants meeting the company’s criteria will be forwarded to the company for hiring consideration. The Tennessee Department of Labor and Workforce Development also provides:  Leadership training for supervisors, team leaders and managers on interpersonal skills required to motivate employees.  Team training where interpersonal communication is essential between supervisors and team members.  Instructor certification based on a company’s specific requirements.

FastTrack Infrastructure Development Program (FIDP) In order to qualify for this program, local communities must apply to ECD with a goal of improving public infrastructure in order to create new jobs and business investment. Applications must be for specific projects and must be tied to a company commitment to create or retain a defined number of jobs. Qualifying projects must involve companies engaging in manufacturing or other economic activities beneficial to the state of Tennessee. Companies for whom more than 50% of the product or service is involved in the manufacture of products for export are also eligible. FIDP grants require local community matching funds calculated along a varying scale based on a community’s ability to pay.

FastTrack Infrastructure Development funds can be utilized to build:  Water systems, including intake structures, treatment plants, storage tanks, transmission lines or other structures associated with public water service.  Wastewater systems, including collector lines, treatment plants and other structures associated with public wastewater treatment services.  Transportation systems, including industrial access and other public transportation infrastructure.  Site improvements, including grading, infilling, leveling or other extraordinary situations in which the physical conditions of a site must be altered in order to allow capital investment for job creation.  Technology systems, including the extension of broadband or high speed data transmission lines necessary for companies to conduct business.  Other improvements to the physical infrastructure of a site may be considered if communities can demonstrate such improvements are required for the location or expansion of a business which creates jobs.

Business Enterprise Resource Office The Tennessee Business Enterprise Resource Office or BERO provides technical, financial and business plan development advice for small, minority-owned and woman-owned businesses. BERO’s goal is for constituent companies to become financially stable and make the transition from single entrepreneur operations to growing businesses. BERO works closely with the Governor’s Office of Diversity Business Enterprise.

BERO can assist companies with:  Technical assistance, such as obtaining a business license, developing a business plan, exploring financial assistance or expansion assistance, as well as other special needs.  Assisting with procurement opportunities, engaging in business matchmaking fairs and advice on making contacts with corporate buyers.  Driving manufacturing initiatives and providing links to resources for expansion.  Creating export opportunities and connecting companies to international market data as well as export resources at the local and federal levels.

BERO’s staff includes an expert in small manufacturing development whose goal is to foster business-to-business networking between large and small companies, and who maintains a manufacturer’s resource directory with links to trade associations, government agencies and community organizations.

State of Tennessee Grants and Loan Programs

Community Development Block Grant Program (CDBG) Grant dollars are available to communities with a population of less than 50,000 residents for the purpose of attracting new or expanding companies, as long as the projects align with one of three national objectives: 1) Principally benefit low and/or moderate income people. 2) Eliminate or prevent slums and/or blight. 3) Address imminent health and/or safety problems.

CDBG grants are administered as part of two primary programs: 1) Economic Development, which includes grants for industrial infrastructure as well as loans for industrial buildings and equipment. 2) Community Development, which includes grants for water and wastewater treatment facilities, housing rehabilitation and projects aimed at improving community livability.

Feedstock Processing Demonstration Loans Administered by ECD and the Tennessee Department of Agriculture, the aim of this program is to spur investment in agricultural feedstock processing facilities across the state, primarily to insure that Tennessee-grown soybeans are utilized in the production of biodiesel fuel. The program is open to new applications as existing loans are repaid.

Private Activity Bonds ECD manages the federally mandated limit on the amount of bonds that can be issues through local industrial development boards, the Tennessee Housing Development Agency and for student loans. The limit is set each year by the Internal Revenue Service.

Appalachian Regional Commission (ARC) ECD allocates each year a series of grants aligning with the objectives of the ARC, a federal-state partnership aimed at creating self-sustaining economic development and improved quality of life for the people of the Appalachian Mountain region. The ARC was designed primarily to benefit a region in the states of Alabama, Georgia, Kentucky, Maryland, Mississippi, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Virginia and West Virginia. The grants fall into four categories: highway, non-highway, development district and regional initiative. In Tennessee, 50 counties are eligible to qualify for ARC grants, including Hamilton County.

ARC Grants funds may be used to construct or improve:  Infrastructure projects, like water, wastewater, roads and rail projects aimed at securing new jobs or retaining existing jobs  Job training programs  Development of basic skills in the areas of reading, writing, computation and computer literacy  Housing  Multi-jurisdictional programs creating demonstration projects aimed at enterprise development

Local Incentives

New and expanding companies locating in Chattanooga and Hamilton County may take advantage of numerous incentives. Most of the incentives vary based on a company’s financial investment and the number of new jobs.

Tax Abatement Local incentives are offered by the Chattanooga and Hamilton County governments in the form of a payment in lieu of tax (PILOT) program for new & expanding businesses. This incentive allows qualified businesses to substantially reduce their local real and/or personal property taxes for new investments in real and personal property. Typically, projects must have a investment value of at least $5 million in new real and personal property, create 50 or more new jobs with wages equal to or greater than the average wage in Hamilton County as reported by the U. S. Department of Labor.

Once a client is able to share information on the type of project, proposed capital investment, new jobs, and payroll, the Chattanooga Chamber can readily provide a preliminary commitment with regard to tax abatement and land cost. The city and county are prepared to offer some form of tax abatement in combination with a competitive land cost for manufacturing companies interested in locating in Chattanooga.

Other Programs

EPB of Chattanooga EPB offers Enhanced Growth Credits and other services designed to enhance efficiency for commercial and industrial customers. The Enhanced Growth Credit program can offer companies credits on their electric bill when adding electric load through an expansion or installation of electric space conditioning equipment and can last for up to eight years.

Economic Development Administration EDA provides assistance to local governments for development of public infrastructure and facilities necessary to generate or retain private sector jobs and investments, attract private sector capital, and promote regional competitiveness. Focus areas include technology-led development, brownfields redevelopment, and eco-industrial development.

Expedited Permitting The Chattanooga Chamber’s economic development staff can facilitate resolution of permitting issues to ensure an efficient construction approval process.

Foreign Trade Zone Companies located within a foreign trade zone or foreign trade sub-zone can eliminate, reduce or defer customs duties on imported and/or exported products. Foreign Trade Zone 134 includes Centre South Riverport Industrial Park, Enterprise South Industrial Park, and several other industrial sites in Chattanooga/Hamilton County and industrial parks in neighboring Marion and Bradley Counties and Warren County in Middle Tennessee. FTZ 134 encompasses over 5,000 acres.

Renewal Community Chattanooga was designated in 2002 as a U.S. Department of Housing and Urban Development Renewal Community (RC). Businesses within the designated RC can receive tax credits, tax deductions, and accelerated write-offs for new construction or extensive building renovations . Retail, commercial, industrial and mixed-use (retail/housing) businesses are all eligible. The tax credits can be fairly substantial to companies in the Renewal Community that also employ people who live within the RC . In addition, businesses throughout Hamilton County are eligible for tax credits if they hire RC residents and/or individuals from populations with high unemployment rates or special employment needs, such as veterans, individuals with disabilities, ex-felons, and recipients of food stamps, welfare, or SSI benefits. The RC encompasses Census Tracts 2, 3, 4, 8, 10, 15, 16, 19, 20, 21, 26 and 31 ; and includes portions of communities with zip codes 37402, 37403, 37404, 37405, 37406, 37407, 37408, 37409 and 37410. To verify an RC address, go to http://egis.hud.gov/egis/cpd/rcezec/ezec_open.htm.

The most significant RC tax incentives for businesses are:

RC Employment Credit: Up to $1,500 federal tax credit for every qualified employee living and working within the RC .

Work Opportunity Tax Credit: Up to $2,400 tax credit for qualified new hires from populations with high unemployment rates or special employment needs. Residents and businesses do not have to reside in the RC to be eligible for this tax credit.

Commercial Revitalization Deduction: Up to 50% deduction allowed in the first year a building is placed in service or 10% over 10 years can be taken for qualified expenses related to acquisition and/or improvement to commercial properties in the RC .

Capital Gains Deduction: 0% capital gains on profits made from the sale of assets (tangible or intangible) by qualifying businesses in the RC that hold the asset and employ at least 35% of their workforce from the RC for at least 5 years.

Chattanooga is one of 40 U.S. communities, one of 28 cities, and only one of two in Tennessee (the other being Memphis) to be awarded Renewal Community status.

The Tennessee Career Center System

The Tennessee Career Center System provides new and existing employers a broad range of human resource and business support services including employee recruitment, aptitude assessment, interest inventories, applicant screening, job matching, and referral for hiring consideration. The system is staffed by a skilled team of workforce professionals that can assist employers with the development of customized training programs and, where appropriate, can help companies to tap into incentive opportunities that reimburse expenses associated with the training of new and/or incumbent workers. All Career Center services are provided at no cost to the employer and the job seeker.

Tennessee Valley Authority TVA and its economic development partners offer various types of financial assistance to meet the needs of new and existing businesses.

Economic Development Loan Funds TVA’s Economic Development Funds were established to stimulate economic development and leverage capital investment in the TVA power service area. Through leveraging other public and private financial sources, TVA loan funds are used to promote economic expansion and job creation. The loan funds are primarily available to manufacturing firms and local nonprofit economic development entities. Loans can be used to fund the construction of new manufacturing facilities, expansion of existing facilities, and development of publicly owned industrial sites or buildings.

Valley Investment Initiative for Existing Customers The Valley Investment Initiative for Existing Customers (VII-E) is an economic development incentive program jointly offered by TVA and participating distributors of TVA power. VII-E offers financial incentives to existing power customers who contribute to the economic development of the seven-state Tennessee Valley region and complement TVA’s power system resources.

Downtown

Downtown Stats

Population Employment Total population 26,194 Total employees working downtown 49,201 Male population 12,801 Total # of businesses downtown 2,877 Female population 13,393 % of workers in blue collar occupations 37.1% Total households 12,122 % of workers in white collar occupations 62.9% Median age 35.5 % of MSA employment 19% Avg. household income $56,274 Source: DemographicsNow, 2010 estimates Geography: Zip Codes 37402, 37403, 37405 and 37408

Downtown Real Estate

Overview Chattanooga's Central Business District has seen a resurgence of activity, led by condominium and apartment construction. Some $71.2 million of projects are under construction by twelve different developers and another similar amount have been announced. Some of the major projects are the development of Riverpier Landing and Windsor Aughtry's Museum Bluff project, both of which have a retail component. Seven of these projects are renovations of older buildings with the balance being new construction.

Vacancy Rates New Office Construction – n/a Class A Office (Prime) – 7% Class B Office (Secondary) – 12% Retail – 5%

Source: Charter Real Estate

Downtown Fast Facts

Nearly 50,000 people work downtown every day.

More than 200,000 residents attend downtown concert events at Miller Plaza annually.

The Riverbend Festival, held in downtown Chattanooga, is one of the top ten festivals in America and admissions exceed one-half million.

The University of Tennessee at Chattanooga enrolls over 10,000 students annually.

Downtown Chattanooga is served by a FREE shuttle system utilizing electric, zero-emission busses. In service since 1992, CARTA’s Downtown Shuttle service has recorded over 11.3 million passenger trips, making downtown retail stores, offices and restaurants more accessible. The quiet, environmentally friendly, electric buses have run more than 1.9 million miles saving an estimated 65 tons of pollutants.

Three bridges expedite traffic flow into downtown.

Downtown Chattanooga is easily accessible from all surrounding communities. It is sometimes called a “15 minute community” meaning that it only takes 15 minutes to go from one end to the other.

The 21st Century Waterfront projects represent the latest chapter in Chattanooga’s remarkable downtown renaissance. When Chattanoogans envisioned a renaissance for their city 20 years ago, they returned to the river. Now the banks of the Tennessee River flourish with an aquarium, a children’s museum, a carousel, theaters, walking paths, a pedestrian bridge and a score of other projects that helped revitalize a dying downtown. A $120-million, 129-acre vision, capitalized on the public/private partnerships that have made Chattanooga a model for urban revitalization.

Source: Chattanooga Area Chamber of Commerce, Chattanooga Area Regional Transportation Authority, Chattanooga Downtown Partnership, RiverCity Company

Downtown Schools

Two new neighborhood based magnet elementary schools were built to better serve downtown residents and help attract new residents to downtown and close in neighborhoods. Local private donors contributed one-half of the construction dollars. The children of downtown employees are also able to attend these new schools that were funded equally by public and private dollars.

Both schools have close affiliations with the University of Tennessee at Chattanooga (UTC). Both have before and after-school care as well as preschool components. One school is located adjacent to UTC at 8th and Baldwin Streets and the other is at Market and Main Streets in the rapidly developing Southside area. Both schools opened in August 2002.

Source: RiverCity Company

Chattanooga’s 21st Century Waterfront

Ross’s Landing Park Ross’s Landing Park is the renovation and expansion of the existing downtown waterfront park. A new City Pier extends from the City Green across the park and over 120’ into the river. The pier is punctuated by seven stainless steel light masts by artist James Carpenter and an accessible ramp leading to the river’s edge.

The Passage The Passage, a new 350-foot pedestrian underpass connecting Market Street to the river bank, depicts 1,000 years of Native American history, lore and art in an interpretive, graphic encounter. The artist collaborative named ‘Gadugi’ – a Cherokee term for ‘working together’ – has created a series of ceramic disks recounting the Cherokee creation myth, and stainless steel sculptures of stickball players at this historic trailhead. The park also includes expansive new lawns, amphitheaters, and over 2,800 feet of new dock space, all of which will double as venues for Riverbend, the City’s signature summer music festival.

First Street Part of the historic city grid but previously relegated to life as a parking lot, First Street has been rebuilt as an accessible pedestrian connection linking the river, the Aquarium, and the surrounding blocks to the Hunter Museum and the neighboring Bluff View Arts District, as well as North Chattanooga. The dramatic Holmberg Bridge crosses over Riverfront Parkway and provides stunning views and an easy pedestrian connection to the Hunter Museum. The steep slope along First Street between Market and Cherry streets is negotiated by flights of stairs and a 100’-long incline elevator. Along the block between Cherry and Walnut streets, called the “Garden Block,” future shops, galleries, restaurants and residences will line already constructed terraced lawn panels. The terraces currently serve as park, sculpture garden, and festival space.

Renaissance Park Renaissance Park is a new 23-acre waterfront park on the north shore of the Tennessee River adjacent to popular Coolidge Park. The site has a rich history. It was part of the overland route of the Trail of Tears, a Civil War encampment and African-American settlement, and a former enamel stove factory. The park’s landscape infrastructure - earthworks, created wetlands, floodplain forest, trails – and a new green roofed pavilion preserve and interpret the culture and ecology of the site as well as provide access to the river for recreation.

Downtown Development – Projects in Progress

Entertainment  Carmike 12 Cinema Complex  Bijou Theater Redevelopment

Housing  Clearstory  Soho on Main  Walnut Commons  Walnut Hill Townhomes

Hospitality  Hampton Inn & Suites

Major Downtown Employers  BlueCross BlueShield of Tennessee - Cameron Hill Campus  Unum Group - Campus Enhancements

Source: RiverCity Company

Downtown Development – Completed Projects

Completed Housing Projects  1603 Williams Street  17th at Long  1800 Cowart Townhomes  1808 Cowart Street  1900 Cowart Street  Battery Place  Cherry Street Townhomes  Cowart Place  Crabtree Condominiums  Museum Bluffs - Riverside & Parkside  Palmetto 8  River Point  Riverset Apartments  Robinson Apartments  Seventeens on the Southside  Stanton Row

Completed Hospitality Projects  Chattanooga Choo Choo  The Chattanoogan  Chattanooga Visitor's Center at Aquarium Plaza  Convention & Trade Center Expansion  Courtyard by Marriott  Doubletree Hotel  Hilton Garden Inn  Residence Inn by Marriott  Sheraton Read House

Completed Mixed Use Projects – Housing & Retail  1st and Market  BridgeView  The Clark Centre  The Four Seventeen on Frazier  Frazier Place  Grand Hotel  Lofts on Main  Loveman's on Market  Market Street Lofts (Southern Railway Building)  One North Shore  Renaissance Square  River Point Landing  St. Johns  The Terrace on Frazier

Completed Museum & Entertainment Projects  AT&T Park  Bijou Theater  Bluff View Arts District  Chattanooga Theatre Centre  Creative Discovery Museum  Finley Stadium  Houston Museum  Hunter Museum of American Art  IMAX 3D Theater  Memorial Auditorium  Tennessee Aquarium  Tivoli Theater

Completed Public Infrastructure Projects  #1 Fire Station  17th Street Streetscaping  3rd & 4th Street Improvements  CARTA Parking Garages  CARTA Free Electric Shuttle  Greywater System  Market Street Redesign  Riverfront Parkway Redesign  Solar Arrays at Finley Stadium

Completed Public Places  City Council Building  City Hall Restoration  Coolidge Park  Hamilton County Courthouse Renovation  Millennium Riverpark Project  Miller Park  Miller Plaza  Renaissance Park  Ross's Landing Plaza  Sanctuary Skate Park  Tennessee Riverpark  Walnut Street Bridge

Completed Retail/Commercial Projects  2 North Shore  Brabson Place  Historic Ironstead Building

Source: RiverCity Company

For more information on downtown projects, contact River City Company at (423) 265-3700.

Downtown Development – Completed Projects

1st and Market Residential Project – This residential development features twelve luxury condominium flats with views of the river. First and Market also offers over 3,500 square-feet of retail on the lower floor. This site is directly across from the River Place Visitor’s Center and the Tennessee Aquarium. Four town-home units were completed along First Street in February 2004. Eight three-story town-homes will be added later along Cherry Street. All current units sold.

3rd and 4th Street Improvements – Construction began summer 2002 to change Fourth Street to a beautiful two-way boulevard between Broad Street and Georgia Avenue. Fourth Street was widened to accommodate four moving lanes, on-street parking and a tree-filled median. Third Street also became two-way. Work was completed in summer 2003.

17th Street Streetscaping – This streetscape project from Broad to Market Streets on 17th Street provides a linear park designed to eventually connect three Southside neighborhoods including the new Cowart Place residential area. It features a 9' wide sidewalk on the northern side, with a continuous planting bed. A small park connects Cowart to 17th Street, which will serve as a neighborhood gathering place. The street includes two pocket "play" parks per block. This project is unique in that it will capture storm water runoff (roofs and sidewalks) in a water tower at 17th and Market Streets. The stored water will irrigate street trees and allow the landscape system to survive during drought periods. This project was completed in early 2004.

201 Broad Street – This mixed-use retail and office development focuses on the adaptive reuse of the former Coca-Cola Bottling plant. The Tortilla Factory restaurant, which opened in summer 2000, the Courtyard by Marriott Hotel, which opened in April 2001, The Mellow Mushroom, which opened in February 2002, and the new 140-seat Easy Seafood Company are all elements of this development. The administration and education offices of The Tennessee Aquarium occupy the second floor of this building.

401 Building – Two Chattanooga businessmen invested $10 million to revitalize a 1960s-era office building located at the key intersection at the newly widened Fourth Street and Chestnut Street. Much of the exterior was changed dramatically including opening up the structure with larger windows facing the soon-to-be-completed waterfront construction. The main entrance was shifted from Chestnut to Fourth Street with a new two-story lobby. A new restaurant with outdoor seating along 4th Street is also planned. These improvements were completed in January 2005. Total cost: approximately $10 million

Central Block – Built in 1883 and listed on the National Register of Historic Places, the three-story Central Block building has been restored as the new location for United Way of Greater Chattanooga. Located at the corner of 7th and Market Streets, this 20,000 square foot brick Italianate building is in the heart of the Central Business District. Construction began in June 2003, and work was completed in early 2004. Total cost: approximately $3.5 million

The Chattanoogan – Chattanooga’s new conferencing center contains 210,000 square feet of space, with 202 guest rooms and suites, 20 meeting spaces totaling 25,000 square feet, a restaurant and bar, and retail space. The Chattanoogan is located in the block directly south of the Tennessee Valley Office of Power Complex in the heart of the Southside. This facility is truly unique and features the latest in data communications technology.

Convention/Trade Center Expansion – The expansion of the Chattanooga/Hamilton County Convention and Trade Center added 188,000 square feet to the 110,000 square feet of existing space. The addition includes 100,000 square feet of contiguous exhibit space with 30 feet of clear span height and numerous break out/meeting spaces. Renovation of the older meeting spaces and halls, and construction of the new addition were completed in the summer of 2002.

Development Resource Center – This is the new home of the City of Chattanooga and Hamilton County development-related departments. This project was ambitious, asking for the design of the 3-story civic building to be a model for sustainability for the 21st century. It is located on Market Street just north of the St. John’s apartment and retail development and is one block from Prime Outlet’s at Warehouse Row in the Southside. The project was completed in November 2001.

First Volunteer Bank – Construction began in August 2001 for a 14,000 square foot addition to their existing building located at 728 Broad Street in the Central Business District. Construction was completed in May 2002.

Frazier Avenue – Prior to the conversion of the Walnut Street Bridge in 1992 to a linear park connecting the Northshore neighborhood to Ross's Landing and the Central Business District, the older commercial buildings along Frazier Avenue were in a steady decline. The City of Chattanooga improved the sidewalks and added new street trees, and a unique public art program entitled "Steppin' Out on Frazier Avenue" was funded by the Lyndhurst Foundation depicting 13 individual dances using brass footprints by local artist Jim Collins in the sidewalks along both sides of Frazier Avenue. In October 1999, Coolidge Park was built occupying ten prime riverfront acres just south of Frazier Avenue on River Street. Now Frazier Avenue and the entire Northshore community is the place to be! Since construction started on Coolidge Park in 1998, at least 10 new restaurants and 24 new shops have opened and more are currently being planned. New residential units have been developed nearby and older homes are being restored in surrounding neighborhoods.

Hamilton County Courthouse Renovation – The renovation of the Hamilton County Courthouse began in July 2002 and consists of replacing the roof of the building, waterproofing the exterior and foundation, installing attic sprinklers, handrails, a fire pump and an irrigation system. This phase of work was completed in April 2004. The second phase of work included an overhaul of the heating and air conditioning systems, improvements to the fire and smoke alarm systems, new electrical infrastructure and makeovers for the Circuit and Chancery Court courtrooms. The second phase of work was completed in 2005. Total cost: approximately $5.4 million

Jack’s Alley – Several older buildings in the 400 Block of Market and Broad Streets were purchased and renovated by the Chattanooga Land Company between 1995 and 1999. One building in the center was removed to provide a unique through-block alleyway upon which several new restaurants and shops now front. Tenants in this restored complex of buildings include: Sticky Fingers Restaurant, Panera Bread, Taco Mac, The Big Chill and new second floor loft offices.

Loveman’s on Market – Refurbishment of this 180,000 square foot historic building located at the corner of 8th and Market Streets began in Fall 2001. This former department store features commercial space on the ground floor with up to 40 condominiums planned for the upper five floors. Two penthouse units atop the six-story building will have about 3,000 square feet each. An outdoor garden and patio will be located on the roof below the penthouse level and will feature a walking track.

Market Centre Building – This four-story, 40,000 square-foot Class-A office building was recently completed in the gateway of the central business district in the 800 Block between Market and Board Streets. The first tenants moved into the building in March 2001. Parking for tenants and visitors is available on-site.

Market Street Redesigns – Currently in the design phase, construction began in summer 2002 to provide streetscape and roadway improvements to three key blocks of the Central Business District on Market Street between 6th and M. L. King Boulevard. The project includes the return of on- street parking spaces, new pedestrian lighting, bike racks, water bubblers, street benches and trash receptacles as well as new street resurfacing and the addition of new sidewalks. CARTA also designed new bus shelters for these blocks. Work was completed in May 2003.

Riverfront Parkway Redesign – Community leaders have recently taken another look at how Riverfront Parkway, as it stretches along the edge of downtown and the river, could be redesigned into a pedestrian friendly street that connects, not divides, downtown and the Tennessee River. The dramatic redesign included four new at-grade intersections at Houston, Lindsay, Second and Lookout Streets to improve access to downtown and assist in the change of character of the road to an urban street. Removal of median barriers and the installation of curbs, gutters, sidewalks and tree planted medians turn the parkway into a downtown address. Finally, the Chestnut Street intersection was slightly repositioned in a narrowed half mile two lane segment to further enhance Ross's Landing and improve pedestrian access. These improvements were completed in mid-2004.

Sheraton Read House Hotel & Suites – A major upgrade began in October 2003 to revamp this historic downtown hotel. Improvements included the addition of a Porter’s Steakhouse and Starbuck’s Coffee Shop and a new indoor swimming pool. General common area and room upgrades will be made throughout, including the addition of new furniture, linens and lighting. Every room will include Internet access. Work was completed September 2004. Total cost: approximately $11 million

St. Johns Mixed Use Project – This historic restoration converted a once-grand hotel into 14,000 square feet of commercial/retail space on the first floor and 15 market-rate apartments on the upper floors. The St. Johns Restaurant is located on the ground floor, as well as other office and retail tenants and offices for the Community Foundation. The restoration was completed in mid-2004. Total cost: approximately $3.5 million

Source: RiverCity Company

Quality of Life

Climate

Recreation

Parks 98 (over 800 total acres) Golf Courses 17 9 public, 8 private Country Clubs 8 Community Centers 16 Hotels and Motels 67 (9,000+ total rooms) Source: Hamilton County Parks and Recreation

Bluff Furnace Historical Park This mini-park next to the Walnut Street Bridge marks the site of the first furnace (built in 1854) in the Southern Appalachian region to burn coal or fuel.

Chattanooga Audubon Society Operates the Audubon Acres nature preserve in East Brainerd and the Maclellan Island Wildlife Sanctuary downtown.

Chattanooga Greenways So far, 25 miles of this planned 75-mile network of trails and parks have been completed.

Chattanooga Nature Center Features a wildlife diorama, animal rehabilitation hospital and a red wolf survival program.

Reflection Riding Located next to the Chattanooga Nature Center, this nature preserve and arboretum offers horseback riding and hiking.

Ross’s Landing Park and Plaza This four-acre park surrounding the Tennessee Aquarium tells the story of Chattanooga with a series of embedded artifacts, native plants and sculpture.

Tennessee Riverpark Downtown sections connect the Bluff View Art District, historic Battery Place and the Tennessee Aquarium. Eight miles of 22 total miles have been finished. Fishing piers and boat launches are found a few miles upstream.

Walnut Street Bridge The world’s largest walking bridge connects downtown to Coolidge Park.

Tourism

Tourism is a $710 million industry in Chattanooga and Hamilton County.

Tourism and hospitality account for 7,460 Chattanooga and Hamilton County jobs with an annual payroll of over $168 million.

Hotel/Motel Room Receipts for 2008 totaled $110,848,712.

Sports

Chattanooga Lookouts Chattanooga’s AA baseball club plays in AT&T Park. The team’s new location overlooking the Tennessee Aquarium brings old and new fans to the downtown area.

Greater Chattanooga Sports & Events Committee Works to assist local sports organizations in pursuit of sports events and meetings that provide economic benefit to the area. The organization also identifies, recruits and promotes sports events that bring out-of-town visitors to the area including the NCAA Division I-AA Football Championship.

University of Tennessee at Chattanooga (UTC) athletics The UTC Mocs, a member of the Southern Conference, field intercollegiate teams in football, basketball, tennis, wrestling, track and field, cross country and golf. The Lady Mocs conduct programs in basketball, volleyball, cross country, soccer, softball, tennis and track and field. The football Mocs play at Finley Stadium. The basketball Mocs play in the UTC Arena, while the Lady Mocs play most of their contests in UTC’s Maclellan Gymnasium.

Attractions

Chattanooga Choo Choo Originally opened as Terminal Station in 1909, the Chattanooga Choo Choo is now a 30-acre vacation playground featuring railroad car sleeping quarters, theme restaurants, trolley rides, a large model railroad exhibit and beautiful Victorian fountain gardens.

Coolidge Park Opened in the summer of 1999 to honor WWII hero Charles Coolidge, Coolidge Park features and antique carousel, a delightful play fountain and Walker Pavilion.

Lookout Mountain Incline Railway Built over 100 years ago, “America’s Most Amazing Mile” climbs the side of Lookout Mountain.

The Passage Permanent public art celebrating Cherokee culture, symbolism and mythology commemorating the Trail of Tears.

Point Park/Chickamauga and Chattanooga National Military Park The first and largest military park authorized by Congress after the Civil War, Point Park offers an incredible view of the city and tells the story of the battles fought in Chattanooga during the Civil War. The nearby Chickamauga Battlefield in North Georgia sees over 500,000 visitors each year.

Raccoon Mountain Crystal Caverns A wonderful family attraction featuring underground caverns.

Rock City Gardens A marvel of nature featuring ancient rock formations, gardens with over 400 different plant species and panoramic views, 1,700 feet above sea level.

Ruby Falls Home to a 145-foot constantly flowing waterfall in an underground cave.

Southern Belle (Chattanooga Riverboat Company) A floating restaurant and paddleboat, the Southern Belle takes long and short trips up and down the Tennessee River.

Tennessee Aquarium The largest freshwater aquarium in the world features permanent and traveling exhibitions in River Journey. The aquarium adventure continues in Ocean Journey, complete with a saltwater habitat and butterfly garden.

Tennessee Aquarium IMAX 3D Theater One of the few 3-D IMAX Theaters in the Southeast.

Chattanooga Zoo at Warner Park Home to a petting zoo and a variety of exotic animals, including primates and jaguars.

Museums

Association for Visual Arts Located on Frazier Avenue, promotes local and regional artists.

Battles for Chattanooga Museum Located on Lookout Mountain, this museum gives an overview of the battles fought in and around Chattanooga during the Civil War.

Chattanooga African-American Museum at Heritage Center Dedicated to showcasing the achievements of African-American men and women around the world. Home to many valuable and rare artifacts and documents.

Chattanooga Regional History Museum Permanent and temporary exhibits use artifacts, documents and photos, recreated and animated settings and participatory activities to educate audiences of all ages about Chattanooga’s rich heritage.

Creative Discovery Museum A great place for children to discover themselves and the world they live in with hands-on, interactive arts and science exhibits.

Dragon Dreams Museum Showcases over 2,000 dragons crafted in many different materials.

Houston Museum of Decorative Arts Located in the Bluff View Art District, the Houston Museum showcases and antique glassware collection. The museum also features American furniture, china and ceramics from the 18th and 19th centuries.

Hunter Museum of American Art Home to one of the country’s most extensive collections of American art, the Hunter displays everything from 19th century landscapes to 20th century glass and photography.

International Towing and Recovery Hall of Fame and Museum This unique museum has antique wreckers and artifacts from the towing industry, which began in Chattanooga.

Medal of Honor Museum of Military History This one of a kind museum honors the men and women who have received the U.S. military’s highest award for valor.

Messianic Museum Collection of ancient and modern Hebrew artifacts.

Miniatures Museum Features dollhouses and room boxes by various artists.

Siskin Museum of Religious Artifacts Features more than 400 items from many world religions in a variety of media.

Tennessee Valley Railroad Museum The largest operating historic railroad in the Southeast.

Shopping

Hamilton Place Mall Largest shopping mall in Tennessee features over 200 retail stores.

Northgate Mall Has over 100 specialty shops, three major department stores and several surrounding restaurants in the Hixson community.

North Shore Shopping District Quaint specialty stores on the north shore of the Tennessee River.

Hamilton County, TN Library System

Collection # of # of Days Size / # of Public Access # of # of Open Per Branch Volumes Computers Visitors Programs Week Downtown Library - Main 1001 Broad Street Chattanooga, TN 37402 905,426 45 266,835 1,124 6

Eastgate Branch 5900 Building 5705 Marlin Road Chattanooga, TN 37411 53,014 15 115,362 165 4

Northgate Branch 278 Northgate Mall Drive Chattanooga, TN 37415 46,027 15 106,106 156-180 4

Ooltewah/Collegedale Branch 9318 Apison Pike Ooltewah, TN 37363 57,596 13 95,316 310 4

South Chattanooga 925 W. 39th Street Chattanooga, TN 37410 23,155 9 31,226 119 5

Source: Chattanooga-Hamilton County Bicentennial Library.

Performing Arts

Ballet Tennessee Presents contemporary and classical ballet performances.

Barking Legs Theater Contemporary theater presents dance and drama, also offers classes in dance.

Bessie Smith Hall at Heritage Center Celebrating the legendary blues artist, this 264-seat performance hall is reminiscent of the intimate cabaret clubs the “Empress” played in during the 1920s and 30s.

Chattanooga Ballet Hosts an annual production of The Nutcracker and other events during the year.

Chattanooga Boys Choir Known for the annual Singing Christmas Tree, features the voices of over 160 local boys. Performs locally and nationally.

Chattanooga Girls Choir Featuring over 150 girls each summer touring and competing.

Chattanooga Symphony and Opera Association Over 50 year old institution providing Chattanooga with symphony, opera, chamber music and pops programs. Also features a youth orchestra.

Chattanooga Theatre Centre The oldest continuously active community theater in the country.

Choral Arts of Chattanooga The only professional chorus in Tennessee, performing for over 20 years.

Choral Society for the Preservation of African-American Song Performs traditional African-American music throughout the Southeast.

COPAC (Contemporary Performing Arts of Chattanooga) Encourages a broad awareness of the performing arts.

Shaking Ray Levi Society Innovative artists who present their work through dance, music, film, poetry, storytelling and free improvisation.

Soldiers and Sailors Memorial Auditorium Renovated 15 years ago, Memorial Auditorium books national and local shows. Opened in 1924 to honor Chattanooga’s WWI veterans. Listed on the National Register of Historic Places.

Tivoli Theater This beautifully renovated 1920s “movie palace” presents performances by the Chattanooga Symphony and Broadway plays. Listed on the National Register of historic places.

Annual Events

4 Bridges Arts Festival Held at the First Tennessee Pavilion on Chattanooga’s Southside, a setting accessible to diverse local audiences and tourists. The festival supports and develops arts leadership in the community; expands cultural tourism and helps educate people about the business and future of the arts.

Annual Fall Color Cruise & Folk Festival Music, dance, food, crafts and entertainment, plus cruises through the “Grand Canyon” of the Tennessee River in its autumn splendor.

Chattanooga CultureFest in Coolidge Park A celebration of Chattanooga’s cultural diversity, featuring entertainment and food from all of the cultures found in Chattanooga.

Christmas on the River and the Grande Illumination Chattanooga kicks off the holidays in Coolidge Park. The event includes a lighted boat parade.

Hamilton County Fair Entertainment, rides, games, food, exhibits, special children’s area, country crafts, livestock and more.

Nightfall Concert Series Free concerts every Friday evening at Miller Plaza from late May through September.

Rhythm & Noon Concert Series Free concerts at Miller Plaza every Friday noon – 1 p.m. from May through August.

Riverbend Festival Nine nights on the riverfront with live country, jazz, blues, pop, folk, rock and classical music from national recording artists and rising stars. The South’s largest block party, “The Bessie Smith Strut” is a special part of the festival that occurs on M.L. King Jr. Boulevard downtown.

RiverRoast Annual barbecue cooking competition, rowing regatta, live music and fireworks.

Southern Brewers Festival Microbreweries from across the U.S. provide samples for patrons, along with food and soft drinks. Entertainment provided by live national and regional acts.

Wine Over Water Festival Festival of wine samples held on the Walnut Street Bridge. Proceeds go to restore historic buildings in the area.

Housing Costs

Year Median Sale Price 2005 $131,900 2006 $136,000 2007 $130,900 2008 $129,100 2009 $122,600 Source: National Association of Realtors

2010 Estimated Zip Code Information for Chattanooga-Hamilton County

Population Households 2000 Census 2010 Est. 2015 Proj. 2000 Census 2010 Est. 2015 Proj. 37302 Apison 2,735 2,793 2,765 1,067 1,096 1,095 37308 Birchwood 2,475 2,783 2,842 896 1,029 1,059 37341 Harrison 11,969 13,235 12,635 4,373 4,872 4,693 37343 Hixson 37,065 40,842 40,913 14,436 16,011 16,180 37350 Lookout Mtn. 1,998 2,024 1,859 790 807 747 37363 Ooltewah 23,896 30,824 30,825 8,331 10,943 11,051 37373 Sale Creek 2,787 3,226 3,179 1,131 1,316 1,309 37377 Signal Mtn. 14,970 15,890 15,927 5,765 6,003 6,213 37379 Soddy Daisy 22,766 26,287 26,969 8,633 10,022 10,366 37402 Downtown 4,166 3,571 3,336 2,406 2,026 1,885 37403 Erlanger-UTC 4,009 4,960 5,449 1,255 1,687 1,957 37404 Highland Park 14,517 14,428 13,814 5,252 5,240 5,048 37405 N. Chattanooga 14,868 15,852 17,372 7,160 7,741 8,773 37406 E. Chattanooga 14,453 14,267 13,362 5,657 5,629 5,323 37407 East Lake 7,760 7,928 7,319 3,175 3,268 3,042 37408 S. Broad 1,924 1,811 1,758 701 669 662 37409 St. Elmo 3,217 3,247 2,981 1,298 1,319 1,222 37410 Alton Park 4,466 4,440 4,046 1,662 1,662 1,524 37411 Brainerd 17,471 17,633 17,204 7,437 7,565 7,468 37412 East Ridge 20,424 21,042 19,755 9,170 9,498 8,982 37415 Red Bank 22,118 23,690 22,885 10,195 11,008 10,763 37416 Hwy. 58 14,506 15,163 17,785 5,898 6,187 7,319 37419 Lookout Valley 5,442 6,364 7,174 2,275 2,709 3,108 37421 East Brainerd 40,133 46,927 60,007 16,387 19,314 25,492

Source: DemographicsNow

Medical Care

Chattanooga/Hamilton County Hospitals Number Licensed beds Hospitals 11 4,940 Nursing Homes 12 1,842 Residential Homes for the Aged 12 282 Home Health Organizations 15 N/A Assisted Living 16 995

Health Care Costs Chattanooga MSA* National Average Optometrist Visit $87.00 $85.00 Doctor's Visit 94.73 82.98 Dentist's Visit 59.67 77.68 Source: ACCRA Cost of Living Index, 2009 Annual Average

Chattanooga is known as a regional leader in the medical field. In Hamilton County, 11% of jobs and 12% of payroll are generated by health care. Recognition of Chattanooga’s medical community includes:

The Tennessee Craniofacial Center is one of the leading facial reconstructive centers in the county, treating patients from all over the world.

The Chattanooga Heart Institute is one of the leading heart centers in the region.

Siskin Hospital is Tennessee’s only not-for-profit hospital dedicated to physical rehabilitation.

Transportation

Public Transportation: Chattanooga Area Regional Transportation Authority (CARTA) operates 73 buses over 14 fixed routes, transporting more than 2.6 million passengers a year. CARTA also operates the free electric shuttle service in the downtown area. CARTA also operates Care-A-Van vehicles, a scheduled service for handicapped passengers.

Highway Commutes: Chattanooga is at the intersection of three major highways – Interstates 24, 75, and 59. Interstate 24 enters Chattanooga from the northwest; Interstate 75 runs through Chattanooga to the north and south; Interstate 59 comes to Chattanooga from the southwest. A network of accessible and free-flowing secondary roads connects those interstates to every corner of the city. Chattanooga is what is sometimes referred to as a “fifteen minute town,” meaning that a person can get from just about any location to any other location in about fifteen minutes.

Air Travel: Air service at the Chattanooga Metropolitan Airport is provided by a number of carriers offering passenger and cargo service to all major cities in the U.S. Commercial service is provided by Allegiant Air, American Eagle, Delta Connection Carriers, Northwest Airlink and US Airways Express.

Fire Protection Insurance Rating Average Response Time Chattanooga Class 2 <5 minutes Hamilton County 3-9 <5 minutes Source: Chattanooga Fire Department

Utility Services In terms of energy costs and availability, the Chattanooga region is in an enviable position relative to other locations in the U.S. Both electricity and natural gas are available in plentiful supplies and at some of the most reasonable rates found anywhere. In addition, water supplies are plentiful and sewage treatment is available throughout the region, with considerable excess capacity to support industrial expansion

Power System: EPB Source Company: Tennessee Valley Authority

Power System: Chattanooga Gas Company Source Company: East Tennessee Gas & Southern Natural Gas Company

Water: Tennessee American Water Company Eastside Utility Hixson Utility District Source: Tennessee River, Case Springs (Hixson Utility District only)

*Metropolitan Statistical Area (MSA) includes Hamilton, Marion and Sequatchie counties in Tennessee and Catoosa, Dade and Walker counties in Georgia.