Oak Ridge Today

Council rejects revised plan for Main Street Oak Ridge

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Most of Main Street Oak Ridge is pictured above in this proposed plan from Nov. 29, 2018.

Most of Main Street Oak Ridge is pictured above in this proposed revised plan from Nov. 29, 2018.

 

Note: This story was last updated at 1 a.m.

The Oak Ridge City Council on Monday narrowly rejected a revised plan that would have allowed four national retailers to build stores at Main Street Oak Ridge.

The Council had unanimously approved a revised plan for Main Street Oak Ridge, subject to certain conditions, in December. That was the first of two readings.

But Council rejected the plan in a 4-3 vote in the second and final reading on Monday.

The rejection hinged on concerns that included the closure of an access road to the 58-acre site, the movement of mixed-use areas to a future phase along Wilson Street, and questions about whether there are other site plan options and whether the development would or should establish a “city center.” People who rejected the revised plan or asked Council to reject it said they support the development and want continued negotiations with RealtyLink, the developer. But it wasn’t immediately clear this week if that will happen.

Those who had supported the revised plan, on the other hand, warned that rejecting it could affect funding for Oak Ridge and Anderson County governments and school systems by diminishing expected sales and property tax revenues, possibly in the range of several hundred thousand dollars. They worried about the impact on the city’s retail community, property tax values, and new housing developments. They called the project a “once in a generation” opportunity and said it could be a few decades before another similar proposal emerges.

It’s not clear what will happen next or if there is any solution that will be acceptable to both RealtyLink and the planning commissioners and City Council members who opposed the revised plan. On Tuesday, three people involved in the project, including RealtyLink, said there is no other design, no “plan B.”

“We’ve worked for six months to get to where we are,” said Neil Wilson, principal of RealtyLink in Greenville, South Carolina. “We didn’t get what we wanted, and they didn’t get what they wanted.”

He said the four national tenants were notified Tuesday that Council rejected the proposed changes to the planned unit development for Main Street Oak Ridge. The potential tenants will be notified if something changes. [Read more…]

Tourism in Oak Ridge, Anderson County shows increased economic impact

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The economic impact of tourism in Anderson County and Oak Ridge has increased for a second year in a row.

In September, the Tennessee Department of Tourism Development released its 2015 annual report showing that visitors to Anderson County, which includes Oak Ridge, were responsible for spending more than $119 million in the county, an increase of 2.9 percent over the previous year, a press release said. Visitor spending in Anderson County yielded nearly $3 million in local sales tax.

“Marketing efforts continue to pay off as part of an organized effort to increase tourism in Oak Ridge and Anderson County,” Anderson County Mayor Terry Frank said in the press release. “Tourism is not only a way to increase our tax revenues, but the people who visit us positively add to the fabric and culture of our community—making tourism investment an all-around win.”

In its annual report, Explore Oak Ridge released data that showed Oak Ridge hotel revenue was up by 11 percent compared to the previous year (hotel revenue is a typical measure tourism’s economic effect on a city). Local tax generated from Oak Ridge hotels exceeded $585,000 in the 2015-16 fiscal year. [Read more…]

Oak Ridge could lose $500K-$700K per year under Hall tax repeal

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McNally-Ragan-Calfee-at-Breakfast-with-Legislators-April-25-2016

The reduction and repeal of the Hall income tax was among the issues discussed during a Breakfast with the Legislators on Monday, April 25, 2016. Pictured above from left are Sen. Randy McNally, Rep. John Ragan, and Rep. Kent Calfee. (Photo by John Huotari/Oak Ridge Today)

 

Note: This story was last updated at 9:30 p.m.

Oak Ridge could lose $500,000-$700,000 per year in revenues if the repeal of the Hall income tax is approved, Oak Ridge City Manager Mark Watson said last week.

If Governor Bill Haslam signs a bill that the state legislature passed Friday, the tax, which was enacted in 1929, would be eliminated in the 2022 tax year. Haslam has not said whether he will the sign the bill into law or veto it.

If it becomes law, the bill could cost Oak Ridge about $119,000 in the fiscal year that starts July 1, or about 1.25 cents on the property tax rate, Mayor Warren Gooch said Saturday. The legislation would reduce the Hall income tax on stock and dividend income from 6 percent to 5 percent in the 2016 tax year.

The tax would be reduced by 1 percent per year after that until it is eliminated by 2022.

The Hall income tax generated total revenue of $303.4 million in Tennessee in fiscal year 2014-15, and $105.5 million went to cities and counties, with the rest going to the state.

On Thursday, Watson said the amount dispersed to Oak Ridge varies between about $500,000 to $700,000 per year. State data shows Oak Ridge collected about $708,000 in 2015. [Read more…]

State sales tax holiday under way

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Information from WYSH Radio

Tennessee’s annual sales tax holiday began at 12:01 a.m. this morning, and it will continue through Sunday, August 3, at 11:59 p.m. There will be no sales tax charged on clothing and school and art supplies that cost less than $100 per item and computers that cost $1,500 or less.

Examples of items that can be bought tax-free during the holiday include: [Read more…]

2014 Election: Mayoral candidates ‘bicker’ over tax hikes, lawsuits

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Anderson County Mayor Debate

The three candidates for Anderson County mayor are pictured above at a debate moderated by radio talk show host Hallerin Hilton Hill, left. Starting at center, the three candidates in the August 7 mayoral election are Terry Frank, the incumbent and a Republican; Democrat Jim Hackworth; and Independent Bradley Rickett.

CLINTON—She’s attacked him over a 24-year-old tax hike. He’s blasted her over lawsuits and turmoil in the Anderson County Courthouse.

The two candidates, Anderson County Mayor Terry Frank and her challenger, Jim Hackworth, will face off in the August 7 election.

Frank, a Republican, was first elected mayor in a special election in August 2012. Now she is running for her first four-year term.

Hackworth, a Democrat, is a former state representative and Anderson County commissioner.

The two have battled in forums, on radio shows, and through ads and flyers. Their political squabbles have largely ignored the third candidate, Independent Bradley Rickett. [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…]

Council gives schools $250,000, school shutdown avoided

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Bruce Borchers and Mark Watson

During a special meeting Tuesday, Oak Ridge municipal officials agreed to give the city school system an extra $250,000 to avoid a potential loss of millions of dollars in state funding and avert a possible Oct. 1 school shutdown. Pictured above are Oak Ridge Schools Superintendent Bruce Borchers, left, and City Manager Mark Watson, who recommended the extra funding on Tuesday. (File photo)

In a short special meeting Tuesday, the Oak Ridge City Council agreed to give the city’s schools $250,000 to allow the system to avoid a potential loss of millions of dollars in state funding and avert a possible Oct. 1 shutdown.

The one-time transfer will come from higher-than-expected sales tax revenues in Roane County.

The vote was 4-1-1. Oak Ridge Mayor Tom Beehan, Mayor Pro Tem Jane Miller, and Council members Chuck Hope and Charlie Hensley voted in favor of the extra funding, which had been recommended by City Manager Mark Watson. [Read more…]

Guest column: Oak Ridge Schools explain funding issues, maintenance of effort test

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In the spirit of collaboration, the Oak Ridge Schools would like to share pertinent information in regard to the current maintenance of effort (MOE) issue that faces our community. Tennessee law requires that local governments fund local school systems by at least the same amount each year.

In August, Oak Ridge Schools were notified by the State Department of Education, Office of Local Finance, about the failure to pass the MOE test. Failure to correct this problem by Oct. 1 will result in a loss of Basic Education Program (BEP) funding at a rate of $1.87 million per month.

The only possible resolution to satisfy state law is an increase in local funding from the city general fund in the amount of $250,000. This budget amendment would need to be approved in two readings by City Council, and two readings by the Board of Education.

Numerous meetings have occurred between city and schools staff. In addition, the “high school debt/potential failure of MOE” item has been an ongoing discussion for the past two years. To date, no meetings have been scheduled by the City Council to make the necessary budget amendments. [Read more…]

Guest column: The sky is not falling on school funding, city manager says

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Mark Watson

Mark Watson

The Sky is NOT Falling!

It is not often that a city manager takes the time to write an editorial, but I think this is one of those times.

These past two weeks, I have been working with new School Superintendent Bruce Borchers in reviewing a notice he received from the State of Tennessee that the financial formulas for required school funding have not been met by Oak Ridge. This principle is known as maintenance of effort.

Oak Ridge is one of the few school systems in Tennessee recognized as a city system. The school system is a “department” of the city for budgetary purposes.

Our school system has maintained itself through the years as one of the premier school systems in the state, and citizens here pay much more than the minimum requirements for school maintenance found elsewhere. However, with ups and downs of sales taxes and reductions in some state funding categories, the school and the city have found themselves calculated as coming up short in the statewide formula. This is the problem that Superintendent Borchers and myself find ourselves working together to resolve. With a solution, we will take that to our respective City Council and School Board. [Read more…]

Haslam signs bill to reduce grocery tax

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Governor Bill Haslam

Bill Haslam

Tennessee Gov. Bill Haslam on Monday signed legislation that reduces the state sales tax on groceries from 5.25 percent to 5 percent in July.

It was the last step in a two-year effort to cut the state portion of the grocery sales tax to 5 percent, a press release said.

Haslam held a ceremonial bill signing on Monday at Sloan’s Grocery in Vonore in Monroe County. [Read more…]

Guest column: Anderson County officials present budget highlights

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By Anderson County Mayor Terry Frank and Budget Director Chris Phillips

As Anderson County government begins the budget process for the 2013/2014 county budget, we wanted to share with the citizens, elected officials, county employees, and all interested parties some of the challenges and opportunities that we face in presenting our County Commission with a balanced, no-tax-increase budget while still providing core services.

Upon first request from all departments, the county’s general fund budget is out of balance by more than $4 million, expenditures over revenues.

Revenues are initially projected at 98 percent of our current year levels. Property assessments (growth) have a slight increase, while things like sales tax and business tax are projected to be down to some extent. While the county’s general fund is not heavily dependent upon federal revenue, budget woes at the federal level have caused concern about some of the revenues that we do receive. [Read more…]

Governor says legislative agenda underscores top priorities

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Governor Bill Haslam

Gov. Bill Haslam

NASHVILLE – Tennessee Gov. Bill Haslam this week announced his priorities for the 2013 legislative session, building on momentum from his past proposals focused on attracting and growing Tennessee jobs, pursuing meaningful education reform, managing an efficient and effective state government, and strengthening public safety.

“In working together over the past two years with the Legislature, we’ve accomplished a lot for the people of Tennessee, and I look forward to working with the 108th General Assembly in the same way,” Haslam said. “Our proposals represent our top priorities of making Tennessee the No. 1 state in the Southeast for high quality jobs, continuing to improve education, being the best managed state in the country, and keeping our citizens safe.”

The governor’s legislation:

[Read more…]