Mark Watson
A city board on Monday will consider extending the tax agreement for the redevelopment of the Oak Ridge mall from 20 years to 30.
The Oak Ridge Industrial Development Board will consider the change to the tax increment financing, or TIF, agreement during a special meeting Monday afternoon.
It’s one of a series of resolutions expected to be considered by the IDB and Oak Ridge City Council during special-called meetings on Monday, September 29. [Read more…]
Mark Watson
In December of 2013, the City of Oak Ridge was given a Christmas present: a strong, viable prospective property owner that would help reclaim the center of our precious city. Crosland Southeast, well-respected developers from North Carolina, came to our city and said they could help us redevelop the crumbling mall within our city. This mall, newly named Main Street Oak Ridge, had come to symbolize the ultimate development challenge for our city.
Now, 10 months later, the time has come for the details of our work to begin to come out in the open. This project has taken several courses. First, the City of Oak Ridge and Anderson County said that they would support the development of this project with what is known as a tax increment district, or TIF. The governments would continue to receive their marginal values in property taxes, but the “new†value created by the private investment in Main Street Oak Ridge would be used to pay for public improvements on the project such as new traffic configurations, road improvements, and building demolition. In return, the private developer would borrow money at his own risk and develop major new retail shopping, with a potential hotel and residential development on the 65-acre site.
This effort has been successful, and major retail tenants have been lined up for filling a targeted 260,000 square feet of new facilities. Our Belk store will receive a facelift, and JCPenney will continue to perform. At present, stores are in the initial inquiry stages of building and will be moving to make announcements by the first of the year or shortly thereafter. I would love to tell you the names of the stores (which I have seen), but we need to honor the wishes of the companies as they make their expansion announcements. I believe the Oak Ridge community will be pleased! [Read more…]
Tim Sittema
The redeveloped Oak Ridge mall will have a new name, and local banks and credit unions are considering helping with project financing, executives said Tuesday.
The redeveloped mixed-use property will be known as Main Street—Oak Ridge, said Crosland Southeast, the North Carolina development firm that has been working with the city of Oak Ridge to redevelop the site, including through significant demolition and new construction. The name was chosen after long consideration of a new brand identity for the development, including involvement by Oak Ridge High School students.
“Most everyone we talked to in Oak Ridge was positive about creating a downtown destination for the community—something that says this place is the heart of the city,†said Crosland Southeast partner Tim Sittema. “The site already has Main Street running through it; so Main Street—Oak Ridge is the obvious choice.â€
David Bradshaw
Construction is expected to begin in early 2015, with an opening anticipated in the third quarter of 2016, based upon completion of the financial arrangements.
In a press release, Crosland Southeast said a consortium of local financial institutions, led by CapitalMark Bank and Trust of Oak Ridge, is considering substantial involvement in the financing of the redevelopment “due to the transformative nature of this project in the city core.”
“In addition to our bank, ORNL Federal Credit Union and others have held discussions together about providing lending support to the mall project,†said David Bradshaw, executive vice president of CapitalMark. “Although details have not been finalized and commitments have not yet been made, there is very strong interest among our local banks and credit unions to be engaged in this important long-term investment in the Oak Ridge community.†[Read more…]
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…]
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…]
Eric Martin of Sign Co. Inc. in Knoxville installs lettering at Ole Ben Franklin Motors on South Illinois Avenue in Oak Ridge on Tuesday.
Ole Ben Franklin Motors, the largest independent used car lot in Tennessee, is expanding into Oak Ridge, and the company’s new location on South Illinois Avenue will open Thursday, the owner said Tuesday.
It will be the sixth business to open in a little more than one year in a one-third mile stretch of the busy roadway at the southern entrance to central Oak Ridge.
“We want to be part of (the growth),” said Mike Mencer, owner of the Knoxville-based company.
Mencer said the Ole Ben Franklin Motors lot at the former Dean Stallings Ford could have more than 100 cars when it opens at 9 a.m. Thursday. He said the company has a great selection of used cars, can offer financing through its own bank, and has been in business for 30 years. [Read more…]
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…]
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 Planâ€). The Economic Impact Plan has been approved by the Industrial Development Board of the City of Oak Ridge (the “IDBâ€) 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 (“TIFâ€) 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…]
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…]
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…]
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…]
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…]
