Oak Ridge Today

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…]

IDB, Council to consider longer tax agreement, road improvements for mall project

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Main Street Oak Ridge Site Plan without Tenants

A Main Street Oak Ridge site plan from Tuesday, without tenants shown. (Submitted image)

 

Oak Ridge Village Area Rendering

In two special meetings today, local officials will consider adding another 10 years to a tax incentive agreement for the long-awaited redevelopment of the Oak Ridge mall, and they will also consider authorizing improvements to public infrastructure, including the rebuilding of three private roads: Main Street East, Main Street West, and Wilson Street.

The tax incentive is known as tax increment financing, or TIF. It would use new property tax revenues generated at the mall site, which will be renamed Main Street Oak Ridge, to help pay for development costs.

A 20-year, $13 million TIF and economic impact plan were approved by the Oak Ridge Industrial Development Board, City Council, and Anderson County Commission in November, and by Tennessee officials in January.

But the IDB and City Council will now consider extending the TIF term to 30 years. The extension would also have to be approved by the Anderson County Commission and Tennessee officials. [Read more…]

IDB has special meeting on Oak Ridge mall on Monday

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Oak Ridge Village Area Rendering

 

Mark Watson

Mark Watson

A city board on Monday will consider extending the tax agreement for the redevelopment of the Oak Ridge mall from 20 years to 30.

The Oak Ridge Industrial Development Board will consider the change to the tax increment financing, or TIF, agreement during a special meeting Monday afternoon.

It’s one of a series of resolutions expected to be considered by the IDB and Oak Ridge City Council during special-called meetings on Monday, September 29. [Read more…]

Oak Ridge mall to have new name, banks considering financing

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Oak Ridge Village Area Rendering

 

Tim Sittema

Tim Sittema

The redeveloped Oak Ridge mall will have a new name, and local banks and credit unions are considering helping with project financing, executives said Tuesday.

The redeveloped mixed-use property will be known as Main Street—Oak Ridge, said Crosland Southeast, the North Carolina development firm that has been working with the city of Oak Ridge to redevelop the site, including through significant demolition and new construction. The name was chosen after long consideration of a new brand identity for the development, including involvement by Oak Ridge High School students.

“Most everyone we talked to in Oak Ridge was positive about creating a downtown destination for the community—something that says this place is the heart of the city,” said Crosland Southeast partner Tim Sittema. “The site already has Main Street running through it; so Main Street—Oak Ridge is the obvious choice.”

David Bradshaw

David Bradshaw

Construction is expected to begin in early 2015, with an opening anticipated in the third quarter of 2016, based upon completion of the financial arrangements.

In a press release, Crosland Southeast said a consortium of local financial institutions, led by CapitalMark Bank and Trust of Oak Ridge, is considering substantial involvement in the financing of the redevelopment “due to the transformative nature of this project in the city core.”

“In addition to our bank, ORNL Federal Credit Union and others have held discussions together about providing lending support to the mall project,” said David Bradshaw, executive vice president of CapitalMark. “Although details have not been finalized and commitments have not yet been made, there is very strong interest among our local banks and credit unions to be engaged in this important long-term investment in the Oak Ridge community.” [Read more…]

DOE transfers former machine shop property to CROET

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DOE Land Transfer at ETTP to CROET

From left during Wednesday’s land transfer ceremony are U.S. Rep. Chuck Fleischmann; Mark Whitney, manager of DOE’s Oak Ridge Office of Environmental Management; Lawrence Young, CROET president and CEO; and David Klaus, DOE’s deputy undersecretary for management and performance.

 

Roughly 25 acres of land that once housed a machine shop and supporting buildings at Heritage Center has been transferred to an economic development organization that finds new uses for former federal property.

The property transfer from the U.S. Department of Energy to the Community Reuse Organization of East Tennessee was celebrated in a Wednesday afternoon ceremony. It’s the 12th transfer from DOE to CROET, and the two dozen acres were signed over to CROET for private-sector use.

Among the speakers at Wednesday’s ceremony were U.S. Rep. Chuck Fleischmann, a Republican whose district includes Oak Ridge, and David Klaus, DOE’s deputy undersecretary for management and performance.

“The reindustrialization program in Oak Ridge has not only been an economic development catalyst for the region, it is saving tax payers millions of dollars as the federal government transfers underutilized assets to the private sector,” Fleischmann said.

The transfers of the parcels, officially known as ED-11 and ED-12, have been in the works for at least a few years. Lawrence Young, CROET president and chief executive officer, said there will some infrastructure improvements to make the property ready for development. Part of the property once housed Building 1401, an old machine shop that has now been demolished. [Read more…]

Second and final state approval granted for Oak Ridge Mall redevelopment

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Oak Ridge Mall Concept Plan Featured

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 two state approvals required for the $13 million tax financing agreement for the proposed redevelopment of the Oak Ridge Mall have now been granted.

Tennessee Comptroller Justin P. Wilson notified mall redevelopment representatives of his approval in a Feb. 5 letter.

Earlier, in January, the Tennessee Department of Economic and Community Development notified project representatives that it had approved the proposed tax increment financing, or TIF, but would not issue a separate letter.

Under Tennessee law, the comptroller and ECD both had to approve the TIF after considering whether its use is in the state’s best interest. The comptroller said it was in the Feb. 5 letter.

ECD approval was granted in a different manner. In a January e-mail, ECD General Counsel Sharon Kolb said the department had received the request for a “best interest” determination for the Oak Ridge Mall on Dec. 19. Since the department did not approve or deny the request within 30 days, it was deemed approved under the Tax Increment Financing Act, Kolb said. [Read more…]

State comptroller approves $13 million agreement for Oak Ridge Mall

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Oak Ridge Mall

The Tennessee Comptroller has approved the use of a $13 million tax financing agreement that could be used for the $85 million redevelopment of the Oak Ridge Mall. The L-shaped mall is pictured at center above.

The Tennessee Comptroller has approved a $13 million tax financing agreement that could be used for the $85 million redevelopment of the Oak Ridge Mall.

The approval was announced in a Wednesday letter from Tennessee Comptroller Justin P. Wilson to Nashville law firm Bradley, Arant, Boult, and Cummings, which is working with Crosland Southeast, the North Carolina company that wants to redevelop the mostly empty mall.

The 20-year tax increment financing, or TIF, agreement, would use new property tax revenues generated at the 59-acre site to help pay for development costs, possibly including tearing down the existing space between the two remaining anchor stores, JCPenney and Belk, as well as for replacing aging infrastructure and building new roads. [Read more…]

More weather-related closings, cancellations

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Here are more weather-related closings on Wednesday and Thursday:

Due to unsafe road conditions, Waste Connections will not be running trash or recycling routes on Wednesday, Jan. 29. They will collect Wednesday routes on Thursday, Thursdays on Friday, and Fridays on Saturday. The convenience center will also be closed today (Wednesday), Oak Ridge officials said.

“Patience is appreciated,” they said.

Oak Ridge Schools will operate on a two-hour delay Thursday.

Anderson County Schools will be closed again Thursday due to the weather. All central office staff will follow the inclement weather procedure. [Read more…]

ETEC presents 2013 Muddy Boot Awards

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On Friday, the East Tennessee Economic Council named three new recipients of the Muddy Boot Award: Bill Biloski, Ray Smith, and Barry Stephenson.

The Muddy Boot Award is a tribute to people who, through their work and community activities, make East Tennessee a stronger region.

Also Friday, ETEC presented two Postma Young Professional Medals to husband and wife Colin and Sherith Colverson.

The council’s annual celebratory event was keynoted by Tennessee Gov. Bill Haslam. [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…]

Officials celebrate conversion of historic hotel to assisted living center

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Alexander Inn Groundbreaking

Local, state, and federal officials join volunteers and nonprofit and business executives for a groundbreaking ceremony at the historic Alexander Inn on Thursday.

Top military leaders and scientists once stayed at this historic two-story hotel in the heart of Oak Ridge, and now it’s being converted into an assisted living center.

The $5.5 million renovation of the Alexander Inn at Jackson Square started in July, the culmination of a years-long preservation effort. It could be complete by mid-2014, said Rick Dover, manager of Family Pride Corp., the company converting the hotel.

The Guest House Senior Living at the Alexander Inn will have 62 rooms, including a 17-room memory care wing.

The hotel was built during the Manhattan Project, a top-secret federal program to build the world’s first atomic bombs during World War II. Guests who once stayed there included Gen. Leslie Groves, Secretary of War Henry Stimson, and physicists J. Robert Oppenheimer and Enrico Fermi. [Read more…]