Oak Ridge Today

ORHS students work on branding, design ideas with mall redevelopment company

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ORHS Students Work on Mall Redevelopment

Standing from left to right are Buddy McWilliams, Payne Adkins, Abigail Clanton, and Chris Giese. Seated from left to right are Wesley Robinson and Alex Tavangaran. (Photo courtesy J. Clint LaFollette)

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For three classes at Oak Ridge High School, the future of the old Oak Ridge Mall property is something the students are taking personally. Nearly 60 students in the Digital Arts and Design and Virtual Enterprise classes have been working on a branding strategy for the once-thriving retail site, and their top ideas will be presented to Crosland Southeast, the Charlotte-based firm that has been working with the City of Oak Ridge to develop a plan to establish a multi-use work-live-play-shop destination.

“It has been an exciting project to work on, because there have been several attempts to revitalize this property, and all have failed due to, among other things, the lack of focus on the specific interest of Oak Ridge residents,” said Buddy McWilliams, an ORHS senior who is working on the project. “Crosland Southeast has shown that they want to be successful by looking at the interest of students and others who will be using the property.”

Crosland Southeast approached Oak Ridge School Board Chairman Keys Fillauer with the idea to work with the students, and an enthusiastic Fillauer discussed it with ORHS Principal David Bryant and teachers Linda Ousley and Clint Lafollette, and the project was off and running.

Ousley is the facilitator of the school’s Virtual Enterprise program. Ousley said that Crosland Southeast will get a good cross-section of Oak Ridge opinion by talking with the students, and the students are getting excellent experience they can use on their future resumes. [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…]

JCPenney in Oak Ridge to stay open as 33 stores close across US

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JCPenney at Oak Ridge Mall

JCPenney at the Oak Ridge Mall will stay open as the company closes 33 stores across the United States.

The JCPenney in Oak Ridge will stay open as the retailer closes 33 underperforming stores across the United States.

The list of closures announced Wednesday includes only one Tennessee store, the JCPenney at Northgate Mall in Chattanooga.

The JCPenney in Oak Ridge is at the city’s mostly empty mall, where a $85 million redevelopment has been proposed. Crosland Southeast, the North Carolina company that has had a purchase contract on the mall since January 2013, has said the renovated 59-acre site could open in  2016 and include a mix of retail and office space, a hotel, and up to 50 multi-family residential units, as well as a few restaurants. Belk and JCPenney are expected to stay. [Read more…]

Watson one of four finalists for Texas job; decision possible in late January

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Mark Watson

Mark Watson

Oak Ridge City Manager Mark Watson is one of four finalists for a similar job in one of the fastest-growing cities in Texas, and officials there could hire someone near the end of January, an official said Monday.

Jon Branson, one of two assistant city managers in Pearland, Texas, said the City Council is tentatively scheduled to conduct some final interviews on or around Jan. 25, and officials hope to have a decision shortly afterward.

Pearland’s current city manager, Bill Eisen, is retiring at the end of the month after 12 years. Branson will be the interim city manager starting Jan. 1, and he will serve until the Pearland City Council hires a new city manager. [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…]

Guest column: A successful Oak Ridge Mall project

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Trina Baughn

Trina Baughn

Note: This is a copy of a Nov. 14 e-mail from Oak Ridge City Council member Trina Baughn to Anderson County Commissioners and Mayor Terry Frank.

Honorable Mayor Frank and County Commissioners:

Like you and all of our citizens, I recognize the need for the successful redevelopment of the Oak Ridge Mall property. My research, to include discussions with various city officials and partners from their past projects, has me convinced that if anyone can help us finally turn the mall around, it is Crosland Southeast.

The generation of added sales tax revenue from new retail is our highest priority in this venture. Not only do we desire more shopping options, but the financial health of our community is highly dependent upon new sources of revenue.

No one can guarantee that the anticipated sales tax will materialize nor is it realistic to expect such an assurance. However, there is one guarantee contained within this plan. Once demolition has begun, the terms of the tax increment financing (TIF) will be permanently secured, regardless of whether or not anything is built. The end result will lock in a 20-year freeze on the property tax collected by the city and the county. [Read more…]

Guest column: AC Commission needs to stay involved with mall project

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Declining DOE Residency Hurts Anderson County

In 2003, the Anderson County Commission approved a county subsidy for a revitalization project at the Oak Ridge Mall.

Had that project succeeded, it would have generated a substantial increase in county revenue, allowing tax rates to be lowered. A successful mall project would have also helped stabilize the U.S. Department of Energy payroll gap with Knox County. Stabilizing this gap would have generated nearly $100 million more in DOE payroll for the Anderson County economy—in this year alone.

Obviously, the potential economic benefit from a successful mall project is huge.

To give the project the best chance for success, the Commission needs to couple the requested mall subsidy to four key Commission actions: [Read more…]

Letter: Chamber asks city, county officials to endorse mall TIF

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Note: This is a copy of a Nov. 6 letter sent by the Oak Ridge Chamber of Commerce to the Oak Ridge City Council and Anderson County Commission. The Oak Ridge City Council approved the tax increment financing for the Oak Ridge Mall redevelopment in a 6-0 vote on Monday.

Dear members of Council and Commission:

Today, in a full retreat attended by the board of directors of the Oak Ridge Chamber of Commerce and numerous Chamber Millennium Partners, our board unanimously adopted a position urging Oak Ridge City Council and Anderson County Commission to unanimously approve tax increment financing (TIF) for redevelopment of the Oak Ridge Mall property.

This is the most critical near-term economic development project in Oak Ridge and Anderson County. It will undoubtedly impact our economy, our ability to attract additional retail/commercial projects, and our community pride.

Some specifics are: [Read more…]

Oak Ridge City Council approves $13 million tax financing for mall redevelopment

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Oak Ridge Mall

The Oak Ridge City Council voted 6-0 on Monday to approve a $13 million proposal to use new property tax revenues to help redevelop the Oak Ridge Mall. The L-shaped mall is pictured at center above. The white-roofed building at center left is Walmart and the one at center top is the Cinemark Tinseltown theater.

The Oak Ridge City Council voted 6-0 on Monday to approve a $13 million proposal to use new property tax revenues to help redevelop the Oak Ridge Mall.

There was one abstention. The near-unanimous approval by Council continues a string of successes for the proposed redevelopment.

Known as tax increment financing, or a TIF, the proposal approved by Council on Monday had already been unanimously endorsed by the Oak Ridge Industrial Development Board and the Anderson County operations and budgets committees. It will next be considered by the Anderson County Commission on Monday, Nov. 18. [Read more…]

Mall TIF sailing through approval process, goes to Oak Ridge City Council tonight

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Oak Ridge Mall Concept Plan Featured

The proposal to use tax increment financing to help with the $85 million redevelopment of the Oak Ridge Mall, pictured above in a concept plan, has easily sailed through the approval process so far, and the project faces a crucial vote at tonight’s Oak Ridge City Council meeting.

The proposal to use tax increment financing to help with the $85 million redevelopment of the Oak Ridge Mall has easily sailed through the approval process so far, and the project faces a crucial vote at tonight’s Oak Ridge City Council meeting.

The Oak Ridge Industrial Development Board and Anderson County operations and budget committees have already unanimously endorsed the tax increment financing, or TIF. The agreement could be worth $13 million and last 20 years, and it would allow new property tax revenues generated at the site to be used to help pay for development costs.

The redevelopment of the mostly empty mall, where ambitious revamping plans have languished for years, has been proposed by Crosland Southeast, a North Carolina company relatively new to this project. Under the tax financing agreement, new property taxes collected in the TIF district could be used to reimburse Crosland Southeast for certain expenses associated with the project. [Read more…]