Hamilton County Commission approves Jailhouse Studios lease at downtown building

The Hamilton County Commission has unanimously approved a 35-year lease agreement with Urban Story Ventures for the redevelopment of the former county jail in downtown Chattanooga. The developer plans to transform the vacant building into "Jailhouse Studios," a high-tech music and movie studio, which will also include an AI data processing and storage center. This decision follows significant community discussion and concerns regarding the data center component of the project. Commissioner David Sharpe introduced amendments to the resolution, which were also unanimously passed. These amendments cap the data processing and storage use within the facility to 12,000 square feet, requiring further county approval for any expansion beyond this limit. Sharpe stated that these conditions directly address community pushback and aim to prevent the entire building from being converted solely into a data center. Additionally, 1.5% of the net profits from Jailhouse Studios will be allocated to local arts and entertainment workforce development programs, managed by the Songbirds Foundation. Community members expressed mixed opinions during the meeting. Opponents cited environmental concerns related to the data center, questioned job creation numbers, and argued that the county was offering an overly favorable lease deal to Urban Story Ventures. A petition against the data center aspect, garnering over 1,000 signatures, highlighted calls for better public input. Conversely, local artists and teachers supported the project, emphasizing its potential to create necessary infrastructure and opportunities for the creative industry in Chattanooga. Hamilton County Mayor Weston Wamp and Public Works Division Administrator Todd Leamon supported the project, noting that the old jail has been a financial liability, costing $24,000 annually in utilities while vacant since 2020. White indicated Urban Story Ventures plans to invest $60 million to $80 million in local labor and $20 million in supplies for the renovation.