developer seeks tax increase financing for residential development near BMS | Family

BLOUNTVILLE – The Sullivan County Commission had its first public preview Thursday on a request to partner with the City of Bristol to provide up to $ 1.7 million in additional tax funding to bring a residential development of 37, $ 5 million in a “devastated” area near Bristol Motor Speedway.

Bristol Tennessee City Council approved the plan earlier this week. The Sullivan County Commission is expected to vote next week. Bristol Housing is in favor of the project.

Tennessee law allows local governments to use tax increase funding to help offset the cost of redeveloping disaster areas to make property use more feasible for developers. The owners continue to pay the tax bill on the plots concerned, but for an agreed period, part of their payments is intended to repay the loans used to cover the additional cost of the redevelopment, compared to simple construction on a plot. nine.

In this case, the developers would use the TIF money to do things like remove asphalt, gravel and other existing upgrades, for grading, installation of storm water and utilities, and construction. of roads.

The Overlook will bring approximately 158 new single-family residences on the five included plots of land in the project area.

The 96 independent single-family homes will measure between 2,000 and 2,800 square feet, contain at least three bedrooms and two bathrooms, and their purchase price is estimated to be between $ 225,000 and $ 280,000.

The 62 townhouses will measure between 1,600 and 1,800 square feet and have similar amenities, with estimated purchase prices of $ 180,000.

Kingsport-based Danny Karst is the developer and, along with his wife Carla, attended a county commission working session on Thursday to answer any questions about the project. He said The Overlook looks a lot like West Gate, a redevelopment of a former mall site off West Stone Drive in Kingsport. West Gate, which the Karsts and their partners also initiated, received TIF money from the town of Kingsport and Sullivan County. Danny Karst said it would be finished well ahead of schedule.

The Overlook Project is bigger than West Gate. The concept drawings of the houses to be built there are identical to those distributed for the construction of West Gate.

When completed, The Overlook residential development would increase the tax assessment nearly tenfold – from $ 753,955 today (generating annual property tax revenues of $ 18,142 for the county and $ 14,976 for the city of Bristol ) to nearly $ 7.08 million (generating new annual property tax revenues of $ 152,084 for the county and $ 125,545 for Bristol).

After deducting each government’s “set aside” debt service (required by law), administrative fees paid to Bristol Housing and the 35% “hold” for county and city, the new taxes generated by the project will provide up to $ 158,557 per year. to repay the $ 1.7 million loan that Bristol Housing will borrow to finance the TIF. The loan will be repaid over a maximum of 15 years.

According to the proposal, over those 15 years, the new annual monetary benefits for Sullivan County (the 35% growth “holdback” and “set aside” debt service) would amount to $ 48,460, while the figure for Bristol would equal $ 60,268.

The Sullivan County the commission is scheduled to meet on the second floor of the historic Sullivan County Courthouse on Oct. 21 at 6 p.m.


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