A Resolution authorizing The Industrial Development Board of the City of Knoxville to negotiate and accept from Depot Development LLC payments in lieu of ad valorem taxes with respect to property located at 301 and 309 North Central Street and 219-223 West Depot Avenue, and finding that such payments are deemed to be in furtherance of the public purposes of the Board as defined in Tennessee Code Annotated Section 7-53-305.
|Department:||Office of Redevelopment||Sponsors:|
|Category:||Payment In Lieu of Taxes (PILOT)|
COUNCIL DISTRICT(S) AFFECTED 6th District
BACKGROUND Applicant (Depot Development LLC - David Dewhirst, Owner) proposes restoration and adaptive reuse of five historic buildings located in the area “across the railroad tracks” from downtown. The current severe blight conditions on these parcels needs to be eliminated to serve as a catalyst for new investment in this area. The restoration of these buildings will be instrumental to the pedestrian connection between near north and east residential neighborhoods as well as the core of downtown. The project will also compliment the recently started renovation of the White Lily Flour Mill, and connect the Southern Terminal Station to a more active, engaging pedestrian corridor.
Redevelopment will include over 54,000 square feet of total retail, residential and office space along Depot Avenue and Central Street. There will be a minimum of 37 residential lofts and up to six retail/commercial storefront spaces along both Depot Avenue and Central Street. New urban in-fill connecting structures that form urban loft courtyards will enhance the residential and retail environment. Applicant is planning several of the storefronts to accommodate destination restaurant usage as well as office/retail to maximize street interactivity and to promote this corridor as the “pedestrian link” between the downtown core and the historic neighborhoods to the north and east of downtown.
This project will create jobs and investment in the Magnolia/North Central redevelopment areas. More importantly it will serve as a catalyst for additional interest in this area.
OPTIONS Approve, reject or modify
ESTIMATED PROJECT SCHEDULE Construction and completion in 2014
PRIOR ACTION/REVIEW Application has been processed by Staff through normal review procedures
FISCAL INFORMATION There will be no direct cost to the City.
The current annual taxes for the real property are $4,674.06 to the City and $4,545.00 to Knox County for a total tax bill of $9,219.06, which will be the annual PILOT payment on the real property.
The projected cumulative benefit of the PILOT on the real property is estimated to be $738,557.79
for a twelve (12) year term.