Oak Ridge Today

Mall demolition begins with ceremonial groundbreaking, knocking down of wall

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Main Street Oak Ridge Groundbreaking July 20 2016

Demolition of the former Oak Ridge Mall began Wednesday, July 20, 2016, with a ceremonial groundbreaking and the knocking down of a wall near the former Goody’s store, starting construction on a 58-acre mixed-use retail development known as Main Street Oak Ridge. (Photo by John Huotari/Oak Ridge Today)

 

Note: This story was last updated at 7 p.m.

Demolition of the former Oak Ridge Mall began Wednesday with a ceremonial groundbreaking and the knocking down of a wall near the former Goody’s store, starting construction on a 58-acre mixed-use retail development known as Main Street Oak Ridge.

Demolition could last three months, and the construction of two new stores, T.J. Maxx and Dick’s Sporting Goods, could start where the former Sears building is in October. New stores could open in the spring of 2017.

Officials, business representatives, and the community celebrated with a groundbreaking ceremony on Wednesday. About 300 or more people attended. After the groundbreaking on a hot, sunny summer afternoon, those celebrating, including children and adults, had a chance to spray graffiti on part of the old mall as a fundraiser for the renovation of Blankenship Field.

Main Street Oak Ridge is now the largest multi-tenant commercial retail project in the city, said Parker Hardy, president of the Oak Ridge Chamber of Commerce. [Read more…]

Mall project clears critical hurdle Monday

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Oak Ridge Village Area Rendering

 

Tim Sittema

Tim Sittema

Council, IDB approve TIF extension, grant, roadway work

The proposed redevelopment of the Oak Ridge mall cleared a critical hurdle on Monday when city officials agreed to extend a property tax agreement for the 59-acre project, authorize $2 million in roadway and other infrastructure work, and offer a $500,000 grant if some federal funding is not approved.

Officials described the proposed redevelopment, named Main Street Oak Ridge, as an $80 million project that could fill a “hole in the heart” of Oak Ridge, bring new retail life to the city’s downtown, and build a lasting legacy.

Monday’s moves were meant to reduce the risk for four local lenders that could combine to offer $13 million in loans to part of the redevelopment under a tax increment financing, or TIF, agreement. That incentive would use new property tax revenues generated at the mall site and 120 surrounding acres included in the TIF area to repay those loans. Officials said the loans could be repaid in 18 years, according to financial models.

David Bradshaw

David Bradshaw

But in two separate special meetings on Monday, the Oak Ridge Industrial Development Board and Oak Ridge City Council agreed to extend the TIF term from 20 years to 30. That extra 10 years is meant to act as a “shock absorber” and help make sure that the banks are repaid if there is a “glitch” in the project that would push the repayment past the previously approved 20-year term, officials said.

“This is not a ‘home run’ project for us as financial institutions,” said David R. Bradshaw, Oak Ridge president of CapitalMark Bank and Trust, one of the financial institutions that could participate. But, he added, “It is the right thing to do for the community.” [Read more…]