Oak Ridge Today

Four new stores at Main Street could generate more than $600,000 in tax revenues, city says

Posted at
By Leave a Comment

A revised master plan for Main Street Oak Ridge. The Oak Ridge Municipal Planning Commission was to discuss the proposed revisions during a work session on Thursday, April 11, 2019.

The four new stores at Main Street Oak Ridge could create 150 jobs and generate more than $600,000 in sales and property tax revenues for Oak Ridge and Anderson County, according to calculations by the city’s economic development consultant.

The estimated new revenues could include $572,096 in sales tax revenues and $116,965 in property tax revenues for Oak Ridge and Anderson County, according to the calculations. The portion of new sales tax revenues for just Oak Ridge could total $385,158, according to the calculations.

The four new stores are part of a revised plan for Main Street Oak Ridge, the 58-acre redevelopment of the former Oak Ridge Mall.

A new version of that plan is scheduled to be considered by the Oak Ridge Municipal Planning Commission on Thursday. The economic benefit calculations for the new stores are included in the agenda for Thursday’s meeting.

Here is the specific breakdown of the economic benefits of the four new stores, which could total 75,000 square feet, according to the calculations:

[Read more…]

Council members suggest next steps for Main Street Oak Ridge

Posted at
By Leave a Comment

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 plan from Nov. 29, 2018.

 

Oak Ridge City Council members on Tuesday suggested next steps for Main Street Oak Ridge. The discussion occurred about a week after Council rejected a revised plan for the second phase of the project in a 4-3 vote, creating uncertainty about what will happen next. The Tuesday evening discussion was meant to help guide Oak Ridge City Manager Mark Watson in his conversations with RealtyLink, the developer.

The four City Council members who voted against the revised plan expressed a range of concerns on Tuesday that included having a main entrance, ensuring that there is a way to get into and see the center of Main Street, and making sure the project is walkable and has a comprehensive system of sidewalks. Individually or collectively, they objected to the proposed layout of the buildings as the site prepared to welcome a second wave of tenants, advocated for a public forum on the project, and mentioned the importance of mixed-use development. (Mixed-use developments can include retailers and residential and commercial units, among other possibilities.)

The three Council members who voted for the revised plan continued to stress the potential benefits of welcoming four new national retailers to Oak Ridge, pointed out that RealtyLink has spent tens of millions of dollars here, and emphasized the importance of the potential sales tax revenues. They said those revenues will be crucial to help pay off such debts as the renovation of Oak Ridge High School. That debt is expected to spike in 2022 and 2023, about the same time as the city will permanently lose its revenues from the state’s Hall income tax, Oak Ridge Mayor Warren Gooch said.

Gooch issued a dire warning about the possibility of city inaction bringing the project to a standstill on Tuesday.

“The clock is running, and it’s going to impact us going forward,” Gooch said. “I view this as absolutely imperative to go forward. The fiscal viability of this city is at risk.”

The Council members who have raised concerns and voted against the revised plan on Monday, January 14, have stressed the importance of making sure that the city and developer pursue the best development option. They have said they want to ensure the project’s long-term success.

Here is a summary of some of the city officials’ comments from the Tuesday night non-voting work session: [Read more…]

(For members) Divided opinion, split vote for revised Main Street plan

Posted at
By Leave a Comment

The Oak Ridge Municipal Planning Commission and City Council discuss the revised plan for the second phase of Main Street Oak Ridge during a non-voting joint work session in the Municipal Building on Thursday, Nov. 8, 2018. (Photo by John Huotari/Oak Ridge Today)

The Oak Ridge Municipal Planning Commission and City Council discuss the revised plan for Main Street Oak Ridge during a non-voting joint work session in the Municipal Building on Thursday, Nov. 8, 2018. (Photo by John Huotari/Oak Ridge Today)

The Oak Ridge Municipal Planning Commission and City Council discuss the revised plan for the second phase of Main Street Oak Ridge during a non-voting joint work session in the Municipal Building on Thursday, Nov. 8, 2018. (Photo by John Huotari/Oak Ridge Today)

The Oak Ridge Municipal Planning Commission and City Council discuss the revised plan for the second phase of Main Street Oak Ridge during a non-voting joint work session in the Municipal Building on Thursday, Nov. 8, 2018. (Photo by John Huotari/Oak Ridge Today)

 

Oak Ridge officials have discussed the revised plan for the next phase of Main Street Oak Ridge in a half-dozen meetings since October, and in that time, the Municipal Planning Commission has had a split vote and City Council members have expressed divided opinions about the plan.

The Planning Commission, which has generally had concerns about the revisions and had postponed a vote, approved a version of the revised plan, subject to 10 conditions, in a 5-4 vote during a special meeting on Wednesday.

It’s not clear what will happen when the City Council considers the Planning Commission’s recommendation on Monday, December 10. Several Council members have had concerns, while others seemed ready to allow RealtyLink, the developer, to proceed with the 58-acre redevelopment.

The revisions have been proposed as RealtyLink prepares to welcome a second wave of tenants to the former mall site. The changes, which planning commissioners have called significant, would eliminate multifamily units and add retail uses, according to the city staff. The proposed revisions have included removing the access road from the roundabout to Rutgers Avenue, building four stores in that area (between PetSmart and JCPenney), eliminating the planned multi-family residential units near JCPenney, adding sidewalks and open space, and including mixed-use development in a later phase along Wilson Street.

Those who have had concerns have been disappointed about the proposal to close the access road and a shift from what they thought was going to be a mixed-use center with residential units, retailers, restaurants, and a central gathering space, to what could be primarily a shopping center. They have argued that a mixed-use area could improve the long-term viability of the project.

“The overwhelming response I’ve heard is: We want a town center,” said Stephen Whitson, Planning Commission chair. “I’ve heard it over and over.”

Those who would like to proceed are worried that RealtyLink could move on to other developments in other communities if its revised project here is not approved, and they have cited the potential sales tax revenues from the new retailers as an important consideration. The new retailers could include apparel stores and a home store.

Complicating the project are various lease and deed restrictions that control what can be built where. Lease restrictions include, for example, limits on the size of buildings on Wilson Street and restrictions on parking lot use near Cinemark Tinseltown, with no residential within 300 feet of the closest boundary corner.

The question now is whether the city wants to “hold out for something better” or act on a plan that is ready to go, Oak Ridge City Manager Mark Watson said during a November 8 work session featuring Planning Commission and City Council.

RealtyLink has said the proposed changes to the plan are tenant-driven, and the company has limited control over the site plans. Five national tenants are “at the table,” Neil Wilson, RealtyLink principal, told planning commissioners in October. RealtyLink has taken a plan first proposed by Crosland Southeast, the original developer, and adopted and revised it.

New stores would not be expected to be open by Christmas 2019, but they could be open sometime around the spring of 2020, according to the discussion at a November 8 work session.

Here is a timeline of the discussion in five meetings since October. It includes the opinions of planning commissioners and City Council members, and the results of the Wednesday vote.

The rest of this story, which you will find only on Oak Ridge Today, is available if you are a member: a subscriber, advertiser, or recent contributor to Oak Ridge Today. 

Already a member? Great! Thank you! Sign in here.

Not a member? No problem! Subscribe here:

Basic

Pro

Temporary

If you prefer to send a check, you may do so by mailing one to:

Oak Ridge Today
P.O. Box 6064
Oak Ridge, TN 37831

Note: Most news stories on Oak Ridge Today are free, brought to you by Oak Ridge Today with help from our advertisers, sponsors, and subscribers. Some are considered premium content. This story is premium content. Premium content can include in-depth, investigative, and exclusive stories.

Mall demolition begins

Posted at
By 3 Comments

Oak Ridge Mall Demolition Sears July 26 2016

Demolition of the former Oak Ridge Mall began Tuesday. Crews demolished a significant part of the former Sears store Tuesday morning, July 26, 2016. (Photo by John Huotari/Oak Ridge Today)

 

Note: This story was last updated at 12:15 p.m.

Demolition of the former Oak Ridge Mall began Tuesday. Crews demolished a significant part of the former Sears store Tuesday morning.

The demolition is expected to include the enclosed space between Belk and JCPenney, the two remaining anchors at the former mall.

Plans call for replacing the former mall with Main Street Oak Ridge, a 58-acre, $75 million mixed-use development that could include retailers, restaurants, residential units, and a hotel. Belk and JCPenney are part of Main Street Oak Ridge, and they remain open during demolition of the mall’s enclosed spaces and construction of new stores. [Read more…]

Council to consider budget on Monday, Tuesday

Posted at
By Leave a Comment

They postponed a budget vote for one week, and the Oak Ridge City Council on Monday and Tuesday will resume those discussions. So far, the debate has included calls to raise the property tax rate to fund certain programs and other recommendations to keep the rate unchanged—or even lower it.

The budget will be discussed during a non-voting work session at 5 p.m. Monday, June 15, in the Oak Ridge Municipal Building Training Room. The Council could then vote on it in the first of two readings this month during a 7 p.m. meeting in the Municipal Building Courtroom.

Council will then discuss the budget in a second work session at 6 p.m. Tuesday, June 16, in the Multipurpose Room at the Central Services Complex on Woodbury Lane. [Read more…]

School budget would ask city for $650K, use $1.75M from fund balance

Posted at
By Leave a Comment

Oak Ridge Board of Education May 26, 2015

The Oak Ridge Board of Education on Tuesday unanimously approved a budget that would use $1.75 million from the school system’s fund balance and ask the city for about $650,000. The request for more money still has to be considered by the Oak Ridge City Council.

 

Note: This story was last updated at 11:12 a.m. May 27.

The Oak Ridge Board of Education on Tuesday approved a budget that would use $1.75 million from the school system’s fund balance and ask the city for about $650,000.

Those two actions would help Oak Ridge Schools cover a deficit of roughly $638,000 and meet a total of $1.75 million in other desired expenses, or “additional investment,” including:

  • about $1.1 million for 3 percent pay raises with benefits,
  • $484,000 for step increases based on experience, and
  • approximately $211,000 for staff, including a communications director, four technology-related positions, and a teacher’s assistant for an elementary behavioral class. The four technology-related jobs include an instructional technology coach, an applications administrator, and two technology technicians.

[Read more…]

City recommends budget with no tax increase, Council votes Monday

Posted at
By 25 Comments

Oak Ridge City Council

The Oak Ridge City Council is pictured above during an August 2013 meeting. (File photo)

Note: This story was updated at 7:40 p.m. June 4.

Oak Ridge City Manager Mark Watson on Monday recommended a budget that does not raise the property tax rate, setting up a potential conflict with school officials, who have requested a 37-cent tax increase to avoid cuts.

The Oak Ridge Board of Education already approved its budget in in two meetings last week. That budget, which was scaled back from an earlier proposal, could include an extra $3.3 million to start implementing a technology initiative known as 1:1 that would provide electronic learning devices to all students over three years, add five technology positions, and give 2 percent pay raises to staff.

But the budget is still subject to the amount appropriated to the schools by the city. Oak Ridge provides a little less than one-third of the school system’s funding.

While the schools have approved a budget for the fiscal year that starts July 1, the city has not. The Oak Ridge City Council will consider the municipal budget in two separate meetings this month, one on June 9 and the second on June 16. The city budget also includes a 2 percent pay raise for employees.

It’s not clear that Oak Ridge City Council members will agree to raise taxes to accommodate the school system’s request. In his budget presentation to Council on Monday, Oak Ridge City Manager Mark Watson said Council members have endorsed keeping the tax rate unchanged for the seventh year in a row.

[Read more…]

School Board, City Council resolve high school debt dispute

Posted at
By Leave a Comment

Oak Ridge City Council and Board of Education

A proposal to resolve a dispute over sales tax revenues and high school debt appeared to have majority support during a non-voting joint work session of Oak Ridge City Council and Board of Education on Friday.

Despite opposition from a few residents and municipal officials, the Oak Ridge City Council and Board of Education have resolved a dispute over Anderson County sales tax revenues and debt payments for the $66 million renovation of Oak Ridge High School.

The dispute, which started several years ago, centered on how to use the Oak Ridge school system’s portion of Anderson County sales tax revenues generated by a tax increase approved by county voters in a 2006 referendum. School officials had argued that they could keep their share of the revenues generated in the county outside of Oak Ridge, while city officials had said all the revenues, whether collected inside the city or outside of it, should be used for high school debt payments.

A resolution unanimously approved by the school board in February and the City Council in a 5-2 vote on Monday, March 3, allows the schools to keep its portion of the new Anderson County revenues collected outside the city. However, the resolution spells out how the money has to be spent: on technology enhancements, debt reduction, capital repairs and equipment, and grant matches and innovative educational projects. [Read more…]

Council has special meeting today on high school debt, school budget

Posted at
By Leave a Comment

Oak Ridge City Council and Board of Education

A proposal to resolve a dispute over sales tax revenues and high school debt had majority support during a non-voting joint work session of Oak Ridge City Council and Board of Education on Friday.

The school board approved it unanimously on Monday, but a few City Council members have questions about a proposed resolution of a dispute over sales tax revenues and high school debt so they have called a special meeting for this evening (Thursday evening).

At issue is a proposed resolution of the dispute over certain Anderson County sales tax revenues and debt payments for the $66 million renovation of the Oak Ridge High School.

Before it was approved by the school board on a voice vote Monday, the resolution was discussed in a joint work session with the council on Friday. A majority of city and school officials expressed support for the resolution during the non-voting work session.

It is next scheduled to be considered by the City Council on Monday, March, 3.

Tonight’s special non-voting meeting has been called by City Council members Trina Baughn and Anne Garcia Garland. [Read more…]

Guest column: The Oak Ridge High School debt chronicles

Posted at
By 9 Comments

Trina Baughn

Trina Baughn

The Oak Ridge High School Debt Chronicles—How a $40 Million Project Will Cost Taxpayers Over $126 Million (So Far) 

It appears that the nearly three-year long debate between the Oak Ridge City Council and the Board of Education (BOE) over who owes what on the high school renovation project—the single largest financial expenditure that this city has ever made—is about to be resolved once and for all (or so some hope). To many, this will provide a welcomed relief. For all, it will once again extend and increase a debt obligation far beyond what anyone ever imagined.

Just over one week after the initial public revealing, council will vote on a resolution to end the debate on the high school mortgage issue. The root problem that this resolution will address is not ambiguity in the 2004 referendum or in any “gentlemen’s agreements.” No, the reason that this resolution is necessary, according to the fifth “Whereas,” is “changing community economics and increasing educational needs.”  The need for this resolution, which will violate the original understanding and intent of the 2004 referendum, boils down to an implied need by the Oak Ridge schools for more money.

If passed, this resolution will allow the BOE to retain the portion of the half-cent sales tax revenues collected outside of the City of Oak Ridge and will accomplish the following: [Read more…]

City, school officials endorse resolution of sales tax, high school debt dispute

Posted at
By 12 Comments

Oak Ridge City Council and Board of Education

A proposal to resolve a dispute over sales tax revenues and high school debt had majority support during a non-voting joint work session of Oak Ridge City Council and Board of Education on Friday.

Note: This story was updated at 1 p.m.

It hasn’t been approved yet, but a majority of city and school officials on Friday said they support a proposal that would resolve a long-running dispute over whether to use some sales tax revenues collected in Anderson County to help pay for renovations of Oak Ridge High School.

The dispute has centered on how to use a portion of new sales tax revenues collected in Anderson County outside of Oak Ridge under a May 2006 referendum. School officials had argued they could keep that portion of the revenues, but municipal leaders had said the money should be used to help pay down the debt on the $66 million renovation of the high school.

The amount of money in question is in the range of $250,000 to $300,000 annually, although the total varies from year to year. [Read more…]

City, schools could resolve high school debt, discuss Blankenship bleachers

Posted at
By 1 Comment

Oak Ridge High School

Municipal and school officials could resolve a long-running dispute over sales tax revenues and how they should be used to repay the debt on the $66 million renovation of the Oak Ridge High School, pictured above.

Oak Ridge municipal and school officials could resolve a long-running dispute over sales tax revenues and high school debt payments, and they will discuss a proposed resolution during a joint work session Friday.

The non-voting work session will include the Oak Ridge City Council and Board of Education. Also on the agenda is an update on the visitor bleachers at Blankenship Field, which are being demolished. It’s not clear yet how replacement bleachers will be funded.

The meeting starts at noon Friday in the Oak Ridge Municipal Building Training Room.

The sales tax dispute has centered on how to spend new revenues collected in Anderson County, but outside Oak Ridge, under a sales tax increase approved by county voters in a May 2006 referendum. School officials had argued they can keep that money, but municipal officials had said the revenues should be used for debt payments on the $66 million renovation of the Oak Ridge High School. [Read more…]