Oak Ridge Today

Guest column: Won’t support tax increase, urges residents to prevent further waste

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Trina Baughn

Trina Baughn

Sixteen years ago, Partners for Progress successfully lobbied the city to spend over $15 million of your (the taxpayer) money to launch a major development on the West End of Oak Ridge. The promises were enough to make people starry eyed. There was to be a picturesque subdivision of nearly 4,000 homes along with an industrial complex that, when all was said and done, would produce 17,000 jobs, $1 billion in payroll, and nearly $13 million in additional annual property taxes.

Three years ago, many of the same folks behind Partners for Progress began a similar PR campaign touting the sale and redevelopment of the mall. “More shopping choices are coming!” they proclaimed. To date, the city has approved the use of $1.5 million of your money for infrastructure costs and a $13 million TIF (tax increment financing), which will  suppress property tax revenue at current levels for the next 30 years. In other words, no matter what happens, the 64 acres will continue, as it has for the last decade, to produce only 10 percent of its original value because any increases will be used to repay the TIF loan. Developers and city officials claim that the project will produce $1 million (or 20 percent) in additional sales tax revenue to the city, though, historically, the national retail sales growth rate range is between -11.51 percent to +11.18 percent. Even if we find a way around the notoriously stringent Wal-Mart non-compete covenants and actually bring in real retail, it is absolutely impossible to expect these projections to materialize, since, even in the best of times, we’ve not seen half that level of growth. [Read more…]

Oak Ridge Chamber members hear about retail convention at networking meeting

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Leigha Edwards

Leigha Edwards, vice chair of the Oak Ridge Chamber of Commerce’s economic growth efforts, gives an update on retail activity during a Tuesday morning networking meeting. (Photo by Oak Ridge Chamber of Commerce)

Leigha Edwards, one of the Oak Ridge representatives who attended a recent shopping center convention, gave an update on retail activity during a Tuesday morning networking meeting.

Edwards works for UT-Battelle, which manages Oak Ridge National Laboratory, and she is vice chair of the Chamber’s economic growth efforts, a press release said.

She recently attended RECon, held by the International Council of Shopping Centers, along with other representatives of the Oak Ridge Chamber of Commerce and the City of Oak Ridge. In addition to Edwards, other representatives who attended were Melinda Hillman of Roane State Community College and chair of the Chamber’s Board of Directors; Stephen Whitson of H-S Whitson; Mayor Pro Tem Ellen Smith; and Parker Hardy, president and chief executive officer of the Oak Ridge Chamber of Commerce.

“The conversation at RECon about retail development in Oak Ridge has changed dramatically since the first year I attended in 2013,” Edwards said. “The fact that Crosland Southeast is purchasing the mall property changed things in a very positive way. Their reputation is such that it brought a great deal of credibility to the project and the city as a whole. [Read more…]

Garcia Garland running for re-election to City Council

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Anne Garcia Garland

Anne Garcia Garland

Oak Ridge City Council member Anne Garcia Garland is running for re-election in the November 4 municipal election.

In a press release, Garcia Garland said the City Council has now begun to function like a team, the vision she had for it when she was first elected.

“The five members who have been meeting to consider policy and long-term planning have begun to realize how much more can be accomplished in this way,” Garcia Garland said. “I believe that if we can do this as a Council, then we should be able to work in a similar manner with the Board of Education and move forward together.”

Actions by the city government have shown that TIFs (tax increment financing) are useful for investing in new businesses, and the growth of the Illinois Avenue corridor is healthy, Garcia Garland said. She said Council encouraged the Kroger development by changing zoning and permitting traffic signals, and that center inspired the investment in Oak Ridge by the new mall developers. [Read more…]

Guest column: Oak Ridge—moving ahead!

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Mark Watson

Mark Watson

In December of 2013, the City of Oak Ridge was given a Christmas present: a strong, viable prospective property owner that would help reclaim the center of our precious city. Crosland Southeast, well-respected developers from North Carolina, came to our city and said they could help us redevelop the crumbling mall within our city. This mall, newly named Main Street Oak Ridge, had come to symbolize the ultimate development challenge for our city.

Now, 10 months later, the time has come for the details of our work to begin to come out in the open. This project has taken several courses. First, the City of Oak Ridge and Anderson County said that they would support the development of this project with what is known as a tax increment district, or TIF. The governments would continue to receive their marginal values in property taxes, but the “new” value created by the private investment in Main Street Oak Ridge would be used to pay for public improvements on the project such as new traffic configurations, road improvements, and building demolition. In return, the private developer would borrow money at his own risk and develop major new retail shopping, with a potential hotel and residential development on the 65-acre site.

This effort has been successful, and major retail tenants have been lined up for filling a targeted 260,000 square feet of new facilities. Our Belk store will receive a facelift, and JCPenney will continue to perform. At present, stores are in the initial inquiry stages of building and will be moving to make announcements by the first of the year or shortly thereafter. I would love to tell you the names of the stores (which I have seen), but we need to honor the wishes of the companies as they make their expansion announcements. I believe the Oak Ridge community will be pleased! [Read more…]

Guest column: City manager urges citizen engagement in key decisions

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Mark Watson

Mark Watson

Many projects are happening in Oak Ridge at the present time. Our city does not slow down and is affected by issues at the state, federal, and local levels.

As your city manager, I am concentrating on matters such as the implementation of EPA sewer requirements on a tight timeframe, creation of a national park, development of a new mall, and installation of a new dispatch center.

Among its many other decisions, Oak Ridge will be facing a pair of major initiatives which particularly important for our community. The American Museum of Science and Energy (AMSE), owned by the U.S. Department of Energy (DOE) and managed by Oak Ridge National Laboratory contractor UT-Battelle, is under new leadership as veteran museum director David Moore takes the helm. With this change, the DOE knows that the long-term viability of a museum is dependent upon local and regional involvement.

Recently, the AMSE Foundation and the City of Oak Ridge have been co-hosting a series of community meetings about AMSE to discuss options for developing a new operating model for the museum. Two of four public discussions have been held about this topic.

Last week, we heard from the directors of the MUSE in Knoxville, the Titanic Museum in Pigeon Forge, and the new Birthplace of Country Music Museum in Bristol to hear how today’s museums remain current and relevant to their visitors. Turnout for the first two meetings has been very encouraging; the next public meeting is scheduled for Thursday, September 25, from 6-8 p.m., when heritage tourism will be discussed. [Read more…]

Anderson Commission unanimously approves Oak Ridge Mall TIF, project goes to state

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Oak Ridge Mall Concept Plan Featured

The Anderson County Commission on Monday unanimously approved a $13 million tax financing agreement that could be used to help the $85 million redevelopment of the mostly empty Oak Ridge Mall.

CLINTON—The Anderson County Commission on Monday unanimously approved a $13 million tax financing agreement that could be used to help the $85 million redevelopment of the mostly empty Oak Ridge Mall.

The vote was 15-0. Anderson County Commissioner Mark Alderson was absent.

“I am extremely optimistic about this,” said Anderson County Commission Vice Chair Robin Biloski, an Oak Ridge resident.

It’s the fifth unanimous or near-unanimous vote on the project in less than a month. The tax increment financing, or TIF, had also been approved with no opposition, but with one abstention, by the Oak Ridge City Council, and it had also been endorsed with no opposition by the Oak Ridge Industrial Development Board and Anderson County budget and operations committees. [Read more…]

Letter: Mall nullification proposal would make TIF loan impossible to finance

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Oak Ridge Mall TIF Public Hearing

James Murphy, center, is a Nashville attorney representing Oak Ridge Mall redeveloper Crosland Southeast. Also pictured during a recent public hearing are Ray Evans, right, Oak Ridge economic development consultant; and Tim Sittema, a Crosland Southeast partner.

Note: This Nov. 14 e-mail from an attorney representing mall redeveloper Crosland Southeast was written in response to a nullification proposal submitted by Oak Ridge City Council member Trina Baughn to Anderson County officials.

I represent Crosland in connection with the proposed Economic Impact Plan for the Redevelopment of the Oak Ridge Mall Economic Development Area (the “Economic Impact Plan”). The Economic Impact Plan has been approved by the Industrial Development Board of the City of Oak Ridge (the “IDB”) and the City Council for the City of Oak Ridge, and it is on the agenda for the Nov. 18 meeting of the Board of Commissioners of Anderson County. I would like to respond to Ms. Baughn’s suggestion that the tax increment financing (“TIF”) funding for the redevelopment of the Oak Ridge Mall be nullified if at least 65 percent of the planned new retail square footage is not completed by December 2018.

As has been explained by Ray Evans in the meetings of the Anderson County Operations Committee and the Budget Committee, the proposed redevelopment of the Oak Ridge Mall requires a public-private partnership. After carefully reviewing the project’s pro forma, the city officials who have been involved in negotiating the incentives with Crosland were convinced that there was a funding gap of $13 million that could be bridged by the use of the TIF funding. Without that $13 million in TIF funding, the project would not go forward. [Read more…]

Mall redevelopment could cost $80 million, create close to 1,000 jobs

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Oak Ridge Mall Master Plan

The site plan for the redevelopment of the Oak Ridge Mall shows a multi-use, town center development with retail, office, hotel, and residential properties. (Submitted image)

The project could include retail, hotel, office, and residential properties, and generate more than $2 million per year in new city and county sales tax revenues, consultant says

Note: This story was last updated at 2 p.m.

The North Carolina company that wants to redevelop the Oak Ridge Mall has unveiled its site plan for the 60-acre property.

The $80 million redevelopment could include new retail, hotel, office, and residential properties. It would create almost 1,000 new jobs and increase annual city and county sales tax revenues by more than $2 million, according to an estimate by a city consultant.

The two remaining anchor stores at the 500,000-square-foot mall, JCPenney and Belk, would stay. So would Walmart and the Cinemark Tinseltown theater.

Meanwhile, the existing interior space between the anchor stores would be demolished. Previous mall redevelopment plans had also called for demolishing that interior retail space. [Read more…]