Oak Ridge Today

IDB to consider financing-related resolution for Main Street Oak Ridge on Monday

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Oak Ridge Mall

The Oak Ridge Industrial Development Board will consider a financing-related resolution for Main Street Oak Ridge during a special meeting on Monday. Main Street Oak Ridge would redevelop the former Oak Ridge Mall, the L-shaped structure pictured at center above. (Photo by John Huotari/Oak Ridge Today)

 

The Oak Ridge Industrial Development Board will consider a financing-related resolution for Main Street Oak Ridge during a special meeting on Monday.

The resolution would approve documentation related to the tax increment financing, or TIF, for Main Street Oak Ridge. The $13 million, 30-year TIF agreement would use new property tax revenues generated within the economic impact area to assist in the redevelopment.

The special IDB meeting starts at 4 p.m. Monday, August 24, in the Oak Ridge Municipal Building Training Room. [Read more…]

City budget raises trash fee, provides more for city infrastructure

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Oak Ridge City Council on July 28, 2015

The Oak Ridge City Council raised the trash pickup fee by $3.50 during a special budget meeting on Monday, July 27, 2015, and the Council set aside an extra $260,000 for capital projects such as buildings and schools. (Photo by John Huotari/Oak Ridge Today) 

 

Note: This story was last updated at 10:05 a.m. July 28.

There will be a $3.50 increase in the monthly trash fee, and more money—$260,000—will be reserved for capital projects such as buildings and schools, while city officials are not expected to change the new property tax rate provided by the state after five-year reappraisals completed this year.

The trash fee will increase from $7 to $10.50 per month. That change is expected to provide another $335,000 per year in revenue.

The new tax rate—state officials call it a tax-neutral rate—is $2.52 per $100 of assessed value. It was approved in the first of two readings by the Oak Ridge City Council during a three-hour special meeting on Monday. The second reading hasn’t been scheduled yet, but the meeting is expected soon. [Read more…]

Oak Ridge may not increase tax rate above reappraisal change

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Oak Ridge City Council 2014

The Oak Ridge City Council is pictured above in 2014. (Photo courtesy City of Oak Ridge)

 

Property tax rates are already expected to go up in local cities and counties because of an unprecedented drop in property assessments.

And additional increases have been approved or are anticipated in budgets that have already passed in Anderson County, Clinton, Oliver Springs, Roane County, and Rocky Top.

Oak Ridge could be the exception. The city could see an increase in the certified tax rate (state officials call it a tax-neutral rate) from $2.39 per $100 of assessed value to $2.52.

So far, no Oak Ridge City Council members have publicly endorsed raising taxes beyond the change in the tax-neutral rate required by the five-year reappraisals completed this year.

Four City Council members, a majority of the seven-member body, said during a budget work session on Tuesday that they will support the $2.52 tax-neutral rate or that it’s important to stay at that rate for now, until they have more information. [Read more…]

Guest column: Won’t support tax increase, urges residents to prevent further waste

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Trina Baughn

Trina Baughn

Sixteen years ago, Partners for Progress successfully lobbied the city to spend over $15 million of your (the taxpayer) money to launch a major development on the West End of Oak Ridge. The promises were enough to make people starry eyed. There was to be a picturesque subdivision of nearly 4,000 homes along with an industrial complex that, when all was said and done, would produce 17,000 jobs, $1 billion in payroll, and nearly $13 million in additional annual property taxes.

Three years ago, many of the same folks behind Partners for Progress began a similar PR campaign touting the sale and redevelopment of the mall. “More shopping choices are coming!” they proclaimed. To date, the city has approved the use of $1.5 million of your money for infrastructure costs and a $13 million TIF (tax increment financing), which will  suppress property tax revenue at current levels for the next 30 years. In other words, no matter what happens, the 64 acres will continue, as it has for the last decade, to produce only 10 percent of its original value because any increases will be used to repay the TIF loan. Developers and city officials claim that the project will produce $1 million (or 20 percent) in additional sales tax revenue to the city, though, historically, the national retail sales growth rate range is between -11.51 percent to +11.18 percent. Even if we find a way around the notoriously stringent Wal-Mart non-compete covenants and actually bring in real retail, it is absolutely impossible to expect these projections to materialize, since, even in the best of times, we’ve not seen half that level of growth. [Read more…]

Zoning change approved by city officials helps Main Street Oak Ridge project

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Main Street Oak Ridge Belk on March 2, 2015

The Belk store at the Oak Ridge City Center, which could be redeveloped as Main Street Oak Ridge, is pictured above on March 2.

 

Leasing, financing, and pre-construction work on the Main Street Oak Ridge project is progressing as planned, a developer said in late February, and a change to the city’s zoning ordinance approved on Monday will help the redevelopment.

James Downs, Crosland Southeast partner, said his company hopes to start construction late in the second quarter of 2015. It’s part of a plan to have a grand opening in the fall of 2016.

Survey crews from Cannon and Cannon have completed a boundary survey of the 60-acre site, the former Oak Ridge Mall, and field work is under way, said Ray Evans, the city’s retail consultant. [Read more…]

Mall redevelopment close to goal line

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James Downs of Crosland Southeast Retail Update

James Downs, Crosland Southeast partner, gives an update on the redevelopment of the former Oak Ridge Mall during a Tuesday morning Rise and Shine, sponsored by the Oak Ridge Chamber of Commerce, at The Courtyards Seniors Living on Briarcliff Avenue. (Photo courtesy Kathy Gillenwaters)

 

Ray Evans

Ray Evans

Note: This story was last updated at 1 p.m. Nov. 3.

If it were a football game, the long-awaited redevelopment of the former Oak Ridge Mall would be in the “red zone”—not across the goal line yet but close enough to score, a project executive said Tuesday.

Seventy-five percent or more of the new retail space has been leased or is under negotiation, said James Downs, partner of Crosland Southeast, the North Carolina commercial real estate firm that has proposed the project.

The company could have a groundbreaking in the spring of 2015. Construction work, which will include demolition of areas between anchor stores, could be completed by the summer of 2016, making it available to retailers by the fall of 2016. [Read more…]

Follow-up: AC Commission concurs with city’s mall TIF extension

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Oak Ridge Village Area Rendering

Note: This story was updated at 10:02 a.m.

County’s part of agreement does not change

The Oak Ridge City Council has agreed to add another 10 years to the agreement that will be used to help redevelop the former Oak Ridge Mall, and during its regular meeting in October, the Anderson County Commission concurred with the change.

There were no objections, and the Commission’s concurrence with the city’s 10-year extension of the tax increment financing, or TIF, passed 15-0. The city’s portion of the TIF has been extended from 20 years to 30, and the county’s remains unchanged at 20.

The city’s TIF extension had also been approved by the Oak Ridge Industrial Development Board, and the County Commission concurred with that change as well.

Ray Evans, retail consultant for the City of Oak Ridge, told commissioners that Crosland Southeast, the North Carolina firm that has proposed the redevelopment, could close on the property at the end of the year. Demolition could start in the first quarter of 2015, and retailers could have space in the redeveloped 59-acre site by mid-2016, Evans said.

“We think we’re very close to getting across the finish line,” Evans said. [Read more…]

2014 Election: Interest in mayor position, mall redevelopment, better ties with BOE

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Oak Ridge City Council Candidate Forum

Nine of the 10 Oak Ridge City Council candidates are pictured above. From right, they are Kelly Callison, Rick Chinn, incumbent Anne Garcia Garland, Warren Gooch, Gary Love, incumbent David Mosby, Pedro Otaduy, former Council member Ellen Smith, and Eric Tobler. Not pictured is Aditya “Doc” Savara.

 

A majority of the Oak Ridge City Council candidates said they would consider running for mayor or vice mayor if elected on Tuesday, and almost all supported the incentives recommended for the proposed redevelopers of the former Oak Ridge Mall.

The candidates were mixed on whether to bring back red-light cameras, and most seemed to think the city’s property tax rate is about right, in light of current budget needs.

Asked to grade the current Council as leaders, the candidates handed out grades ranging from “A” to “F.”

In a series of recent forums, the candidates generally advocated for better communication between the City Council and Oak Ridge Board of Education and, for the most part, seemed to be in favor of taking over Clark Center Park in south Oak Ridge, although their approvals would hinge on factors such as cost and property restrictions.

There are 10 candidates running for four seats on the seven-member Council in Tuesday’s election. Two of the incumbents—Anne Garcia Garland and David Mosby—are seeking re-election—and two others—Mayor Tom Beehan and Mayor Pro Tem Jane Miller—are not.

Many consider it a critical election, with a business boom under way and major projects on the horizon, including the proposed redevelopment of the mall and the planned $6.5 billion Uranium Processing Facility at Y-12 National Security Complex.

The new Council is expected to elect a new mayor and mayor pro tem (like a vice mayor) during its next meeting after Tuesday’s election.

Here is a look at some of what the candidates said during the recent forums. [Read more…]

County Commission to consider OR mall TIF, District 4 appointment

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Oak Ridge Village Area Rendering

 

The Anderson County Commission will consider extending the tax increment financing agreement for the former Oak Ridge Mall from 20 years to 30 on Monday morning.

The Anderson County Operations Committee recommended approving the 10-year TIF extension during a meeting last week. The TIF would use new property tax revenues generated at the mall site and 120 surrounding acres included in the TIF area to help pay for the redevelopment. [Read more…]

Garcia Garland running for re-election to City Council

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Anne Garcia Garland

Anne Garcia Garland

Oak Ridge City Council member Anne Garcia Garland is running for re-election in the November 4 municipal election.

In a press release, Garcia Garland said the City Council has now begun to function like a team, the vision she had for it when she was first elected.

“The five members who have been meeting to consider policy and long-term planning have begun to realize how much more can be accomplished in this way,” Garcia Garland said. “I believe that if we can do this as a Council, then we should be able to work in a similar manner with the Board of Education and move forward together.”

Actions by the city government have shown that TIFs (tax increment financing) are useful for investing in new businesses, and the growth of the Illinois Avenue corridor is healthy, Garcia Garland said. She said Council encouraged the Kroger development by changing zoning and permitting traffic signals, and that center inspired the investment in Oak Ridge by the new mall developers. [Read more…]

Anderson committee to consider tax agreement for OR mall redevelopment

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Oak Ridge Village Area Rendering

 

It’s already been approved by the Oak Ridge City Council, and a 10-year extension of the $13 million tax agreement that could be used to help redevelop the former Oak Ridge Mall will next be considered by Anderson County officials.

The agreement will be considered by the Anderson County Operations Committee on Monday evening. It could then be considered by the full Anderson County Commission later this month.

Like Oak Ridge officials, Anderson County officials will consider extending the tax agreement for the 59-acre project by 10 years—from 20 years to 30.

Officials have 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. [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…]