You are correct that there is a team called the Chattanooga Lookouts. I am familiar with them now. They are a Minor League Baseball team of the Southern League and the Double-A affiliate of the Cincinnati Reds. They play their home games at AT&T Field, which opened in 2000 and seats 6,340 fans.
The Chattanooga Lookouts are named after the nearby Lookout Mountain. Lookout Mountain is a mountain ridge that runs along the Tennessee-Georgia border. It is known for its scenic views and its Civil War history.