Oak Ridge Today

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

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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…]

Baker Center: Roadway quality at risk unless new funding found

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Tennessee spends less on a per-capita basis than almost any other state on its highways and roads, yet enjoys roadways that are better than those in most states. But according to a new paper produced by researchers at the Howard H. Baker Jr. Center for Public Policy at the University of Tennessee in Knoxville, roadway quality is now at risk unless new funding is found.

Fuel tax rates are among the lowest in the nation, yet Tennessee boasts a roadway network that has better pavement, better bridges, and less congestion than most comparable state systems. Concerns are mounting that these benefits are at risk because of a funding outlook that continues to deteriorate.

The state’s gasoline tax was last raised—from 16 to 20 cents per gallon—more than 25 years ago, in 1989.

Currently, the state’s gasoline tax of 21.4 cents a gallon (which includes a special petroleum products tax) ranks 12th lowest in the U.S., and Tennessee is one of only five states that are free of highway-related debt. Gasoline and diesel tax revenues not only support state roadways but are shared with cities and counties across the state. [Read more…]

Tourism revenues up 3.7 percent in Anderson County

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Bill Haslam during Presidential Visit at Pellissippi State

Governor Bill Haslam is pictured above during a visit by President Barack Obama at Pellissippi State Community College on Friday, January 9. (File photo by Rob Welton)

Tourists spent a total of $115.77 million in Anderson County in 2014, state officials announced Tuesday. That was an increase of 3.7 percent compared to 2013.

The spending generated a total of $6.72 million in state and $2.47 million in local tax revenues, increases of 4.7 percent and 3.8 percent, respectively. A total of 905 Anderson Countians are employed in tourism-related fields.

State officials also said that tourism’s direct domestic and international travel expenditures reached $17.7 billion in 2014, up 6.3 percent, and an all-time high for the state.

The record-breaking numbers were announced in Nashville on Tuesday by Tennessee Governor Bill Haslam and Commissioner Kevin Triplett of the Tennessee Department of Tourist Development. [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…]

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…]

Lake City is now Rocky Top, Tennessee

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Lake City to Rocky Top Vote

The Lake City Council on Thursday agreed to change the town’s name to Rocky Top as part of an effort to attract a multi-million dollar development that could include a water park, interactive theater with children’s museum, and coal miners music theater, among other things.

 

Note: This story was last updated at 1:10 p.m. June 28.

LAKE CITY—Lake City is now Rocky Top, Tennessee.

For most people, Rocky Top has been, until now, the name of a bluegrass song that is wildly popular in East Tennessee and the unofficial anthem of the University of Tennessee Volunteers. Hikers might know it as a sub-peak of Thunderhead Mountain in the Great Smoky Mountains. And shoppers might recognize it as the name of a bookstore, or gas station, or wine trail, or one of many other businesses registered in Tennessee.

But officials and business leaders here have worked for months to make their town to first to use it in a city name.

The idea is to use the name change to spur developments along Interstate 75 that could be worth up to $237 million. Proposed projects include an indoor and outdoor water park, interactive theater with a children’s museum, a coal miners music theater, and laser tag, among other things. Officials have said those developments—which have also included other options such as a hotel, restaurant, and candy company—won’t happen without the name change.

Residents hope the change and subsequent developments will create jobs, add sales tax revenues, and provide a vital economic boost to this depressed town of 1,800 people in northern Anderson County. [Read more…]

UT report to governor: Economy to see stronger growth in 2014 and 2015

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Matt Murray

Matt Murray

KNOXVILLE—After five years of sluggish recovery, the U.S. and Tennessee economies are poised for strong growth in 2014 and 2015.

Despite the slow pace of the recovery, many indicators—including an increase in consumer confidence, rallying stock market prices, and rising home prices—point to brighter growth prospects in the quarters ahead, according to the forecast in the 2014 Economic Report to the Governor of the State of Tennessee, released Friday.

The study, prepared by the Center for Business and Economic Research at the University of Tennessee in Knoxville, predicts the course of the state and national economies by examining many fiscal factors and trends.

Household net worth grew by almost 10 percent in 2013, surpassing its pre-recession level for the first time. [Read more…]

IDB has public hearing, special meeting to consider mall plan Thursday

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Oak Ridge Mall Master Plan

A city board will have a public hearing and special meeting Thursday to consider a tax financing agreement for the $80 million redevelopment of the Oak Ridge Mall. (Submitted image)

A city board will have a public hearing and special meeting Thursday to consider a tax financing agreement for the $80 million redevelopment of the Oak Ridge Mall.

The public hearing starts at 5 p.m. Thursday in the Oak Ridge Municipal Building Courtroom. It will include a presentation by Crosland Southeast, the North Carolina company that has a purchase contract on the mall and has proposed redeveloping it. The public hearing will also include public comments.

The Oak Ridge Industrial Development Board will have a special meeting after the public hearing to consider approving the tax increment financing, or TIF, agreement, which could be recommended to Oak Ridge City Council and Anderson County Commission. [Read more…]

City board will consider tax incentive, development area for Oak Ridge Mall

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Oak Ridge Mall Redevelopment Area

The Oak Ridge Mall economic development area is pictured above. The map shows a contiguous area that could be affected economically by the proposed development, which only includes the former 60-acre mall property, according to a city consultant. (Image courtesy City of Oak Ridge)

A city board this month will consider a financing arrangement that could be worth up to $10 million and allow a North Carolina company to use new property tax revenues generated at a redeveloped Oak Ridge Mall to be used for site development, possibly including for roads, stoplights, and demolition work.

Many of the details aren’t available yet, including the precise amount of the proposed tax increment financing, or TIF, agreement and the length of time it could be in effect. The details will be discussed at a Sept. 26 meeting of the Oak Ridge Industrial Development Board, when members will consider an economic impact plan, city consultant Ray Evans said.

The economic development area could include about 90 acres. It would include the 60-acre mall and could include an apartment complex and museum, movie theater and pizza shop, real estate firm and hotel, and several busy stores on Oak Ridge Turnpike—properties that could benefit from the TIF, Evans said.

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Anderson County officials discuss budget Monday evening

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Terry Frank

Terry Frank

Spending requests have exceeded expected revenues by more than $4 million, mostly because of a proposal to hire more jailers, and Anderson County officials will discuss the budget for the fiscal year that starts July 1 during a Monday evening workshop.

Anderson County Mayor Terry Frank and Budget Director Chris Phillips have said they plan to present a balanced budget that does not raise taxes but still provides core services.

County officials have said projected revenues are down slightly, or about 98 percent of what they are in the current fiscal year. There has been a slight increase in property assessments, but sales and business tax revenues are projected to be down. [Read more…]

Guest column: The velocity of money is 70 mph

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By Pat Fain and Leslie Agron

The usual theory behind economic development for a community is that the local economy is too small. So, economic development experts seek to bring in new companies, especially industrial ones, to enhance that economy. The theory is that increased local purchases by new companies and their employees are multiplied several times as the money spreads throughout the community. Every additional purchase results in additional sales tax from the same original dollar that exited the new company. Companies that manufacture goods or provide services externally have the greatest value theoretically as they actually bring new money into the community. The rate at which this happens is called the velocity of money.

In Oak Ridge, however, the size of the economy that occurs within our city limits is enormous for our population. The problem for Oak Ridge is that much of that economy occurs within non-taxable institutions and the vast majority of their staff does not live in Oak Ridge. Thus, in Oak Ridge the velocity of money is 70 mph—the speed at which those folks are cruising down Interstate 40 on Friday evening as they take their paychecks home!

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