The Rutherford County Regional Planning Commission voted against issuing a permit and rezoning plan for Bible Park USA.

The ACLU has been watching the project proposal amid concerns about public government funding for a private religious enterprise.

Drawing a Line on TIFs

The time has come to draw a line on property tax abatements that subsidize developers.

Lots of folks might agree with that, but maybe not for the same reasons. Joe Sullivan says the downtown TIFs have been beneficial, and the South Waterfront TIF district will be too. Where he draws the line is subsidizing commercial development in the suburbs.

But why should downtown loft condo hipsters get all the breaks? Shouldn't these big box developers get taxpayer help revitalizing their communities by building Target and Lowe's stores with large free parking lots?

Besides, nowadays it costs $100 to fill up the Escalade for a trip over to Turkey Creek when you need a plastic Chinese patio set. Wouldn't it be better for the environment and the community's local economy if folks could do that right in their own back yard?

He also argues that the City has a more stringent TIF evaluation and approval process. Surely he's not suggesting that Scooby and Lumpy can't be trusted with taxpayer handouts to developers?

(See also Sullivan's argument that TIFs aren't free money. He's apparently gone completely off the reservation!)

Carlton Towers, a 127-unit apartment building that's located at the corner of Sutherland Avenue and Forest Park Boulevard in Bearden.
...
will be renamed 414 Forest Park - will likely aim for a young-ish audience,

...Existing tenants will get a chance to stay in the building, but they'll have to dig into their wallets.

Taylor said average rents currently average about $690 a month, not including utilities, but will jump to around $830 a month after the renovations are completed.

There are many elderly people that live in Carlton Towers. How many of them will be able to cough up the approx. 20% rent increase? The location is perfect for them since it is centrally located with sidewalks and easy access to grocery stores, drug stores, etc. I am not sure this change is something to be boasting. I know, I know, free market! Wouldn't it have been nice if the owners allowed for attrition based on normal turnover? Who? What? The greatest generation? Nah.

According to the KNS, a Knox Co. IDB committee recommends turning down two TIF proposals:

Todd Napier of the Development Corporation of Knox County questioned whether the project would generate new sales or simply redistribute spending.

"To say there's new sales tax revenue is a bit of a guess, and in our estimation it's not very likely unless this becomes like a destination, something very unique," Napier said.

Finally, some common sense. One of the developers said he didn't need the TIF to go forward, meaning it doesn't meet the "but for" test. The other developer, Tim Graham, says he needs a TIF because Halls needs a Lowe's anchored strip mall.

Vistors are welcome at this meeting, so please come if you are interested.

Bring your brown bag lunch to the Beck Center, 1927 Dandridge Avenue at at 11:30 on Tuesday, March 18. The program will begin at noon, followed by questions and discussion.

Infill development, as the words imply, is the process of filling in gaps in already developed urban areas. It involves increasing urban density, improving antiquated public facilities, new mixes of activities and land use. It involves more urban design emphasis than traditional land use planning.

Seven of the people most responsible for planning the infill development of central Knoxville will talk about their plans for the Broadway and Central avenue area, the South South Knoxville waterfront, Cumberland Avenue and Magnolia Avenue. Infill development of these
areas , along with the current successes of revitalization in the Fourth and Gill neighborhood, Old North Knoxville and Mechanicsville can create, in effect, a whole “new town in-town” in Knoxville.

Michael Carberry, Comprehensive Planning Manager for Metropolitan Planning Commission, will introduce the topic and the projects. Maps and drawings of the projects will be exhibited. Other presenters will
be Bob Whetsel, Director of Redevelopment , City of Knoxville; David Hill, Senior Director of South Waterfront Development; Mike Reynolds and Jeff Archer, Metropolitan Planning Commission Planners; Anne
Wallace, Cumberland Avenue Project Manager and Jacene England, President of the local chapter of the American Institute of Architects.

City Council members Bob Becker and Joe Hultquist who represent parts of the City involved in the projects will attend to participate in discussion following the presentation.

...over at BlountViews

UPDATE: My observations.

Memo to any of you folks over in Knox County or anywhere else in the area who would like to help save Townsend (the "peaceful side of the Smokies") and push back against wealthy land speculators (including Lamar Alexander) who want taxpayers to fund a tourist thruway to their new Blackberry Farm developments...

Come out to the TDOT hearing on the Pellissippi Parkway extension, tomorrow Tuesday Feb. 19, from 5-7pm at Heritage High School. We hope to be there live-blogging it.

More info here, here, here, and some talking points here.

The $78 million mixed use project will be at the old Supreme Court property. WBIR files this report. Here's WATE. And WVLT. And the Knoxville News Sentinel. Mayor Haslam says this is a private project and no city funds are involved.

I had an interesting discussion at the Candidate Expo with Mr. Victor Jernigan, a well-known developer in Knox County. We discussed growth issues, impact fees, etc. I had mentioned that it would be helpful to look at other areas that have similar geography to Knoxville but have already gone through growth phases, to see what they did, what worked, and what didn't work. I mentioned one area with similar geography is Portland, OR, where they are dramatically limited in the growth of roadways, more so than us. He mentioned that he had read that Oregon had the worst schools in the country and a terrible growth policy.

That was a bit surprising. Portland?

Interesting and varying accounts of a controversial Realtor's Association meeting in the KNS.

The City has inked a deal with Gridiron Burgers to occupy retail space at the new downtown cinema. The City will pay $300,000 to build out the space, and the PBA will lease it to Gridiron for five years. The restaurant hopes to open by summer. Details here.

Ed. Note and update: Reports from the meeting in comments by Rikki and Lisa Starbuck.

As the meeting to discuss the South Knox watertower blight approaches, I would like to encourage everyone to attend whether or not you live in South Knoxville or care about the view from downtown, because ridgetop protection is something we must all fight for, and the developers won't give in easily.

Below are just two examples of ridgetop desecration that is happening right now in the Ritta community. The first photo is a "barrow" operation that is located right next door to the brand new $2 million New Harvest Park on Washington Pike. This is the view from the road. Anyone who visits the new shopping center or the park can't help but see this ugliness. The ridge is being dug out by the landscaping company (Eastwood Landscaping) and most of the dirt was sold to fill in the wetlands beside the Walmart for their expanded parking lot. The Walmart project is finished but the digging continues.

The Road to Nowhere has officially reached a dead end. Read all about it at TennViews.

KNS: Skyline addition raises ire:

"The bottom line is we have this horrendous, industrial-scale water tower, just blighting and defiling the view, not just from the South Waterfront, but from downtown also," said Joe Hultquist, a Knoxville City Council member who represents South Knoxville.

There's an interesting quote from South Waterfront project manager Dave Hill, too.

Avoiding The Slippery Slope Of Tax Increment Financing

From the City of Knoxville:

The City of Knoxville and Southshore Properties LLC announced plans today for a major project located in the city’s 20-year South Waterfront redevelopment plan area.

The cooperative effort includes construction of 137 new residential units with an estimated value of $58.6 million by Southshore Properties - a newly-formed partnership between Mike and Kelly Conley and Mike Stevens - north of the intersection of Barber Street and Langford Avenue in conjunction with $10.7 million worth of street and park improvements by the city.

The city's improvements will include:

• A roundabout (traffic circle) will be constructed at the realigned intersection of Sevier Avenue, Island Home Avenue, and Lincoln Street;

• Reconstruction of Lincoln Street will extend it approximately 600 feet from the new roundabout to the river;

• A new public boat ramp and pier will be built at the end of Lincoln Street;

• A new segment of River Road will be built parallel to the river, extending 1,800 feet from Lincoln Street to Barber Street;

• Reconstruction of Langford Avenue (no Right-of-Way acquisition on south side);

• Side street extensions of Barber, Claude, Dixie, and a yet-to-be named street will be built, connecting to Langford Avenue;

• A 5-acre riverfront park will be created; and

• A 1,800-feet long segment of the riverwalk will be built parallel to the River Road.

I'm a little surprised, because at the public unveiling of the "vision plan", this area was slated for development ten years or so out, if I recall correctly.

Anyway, this sounds like an outstanding project that will jump start (or practically complete?) the South Waterfront project if delivered as advertised. Read the full press release here, which has some drawings.

P.S. The press release telegraphs the likely TIFs: "When completed, the Southshore Properties project is estimated to generate more than $800,000 annually in property taxes. If all properties along Lincoln Street and River Road are developed, the annual property taxes would be more than $1.5 million." This could mean approx. $16 million in TIFs, right?

The Metropolitan Planning Commissions motion to dismiss the 8th District Preservation Association's MPC lawsuit was denied. Here's the press release from the 8th District Preservation Association:

Contact:
Bob Wolfenbarger, Donna Bohon

Today Chancellor Daryl R. Fansler heard a Motion to Dismiss the Metropolitan Planning Commission from the lawsuit filed by the 8th District Preservation Association plaintiffs on the proposed Midway Road Industrial Park. That motion was denied.

The lawsuit brought by the 8th District plaintiffs is in two parts. The first is a certiorari action alleging that the MPC arbitrarily amended its East Sector Plan in order to facilitate the re-zoning of the Midway Road Property. The second part is a declaratory judgment action against the Knox County Commission asking the Court to declare the re-zoning null and void.

The MPC filed a Motion to Dismiss the Certiorari Action, asserting that MPC's amendment of its sector plan was not an appealable action. The 8th District Plaintiffs responded that the amendment of the sector plan was indeed a final appealable action by MPC, and that the Motion should be denied and the appeal should be allowed to go forward.

Chancellor Fansler, after careful consideration of the state statute, the Knox County Zoning Ordinance and the opinion of the Court of Appeals, agreed with the argument of the 8th District plaintiffs. A copy of the 8th District argument is attached for your information.

Their brief on the motion to dismiss is attached.

So as to not overburden those of you who don't have the time to read my long background explanation, I'll give you the great news here. In Sunday's Charlotte Oberver, there's an article Link... about Saturday's opening of their new LYNX light rail line. The public interest was astounding, with sixty thousand people standing in line (some for as long as two hours) to ride the system. That's equal to ten percent of the city's population! The public support and interest is overwhleming. Take note, Knoxville area leaders and decision makers. This isn't Portland or somewhere in California. It's Charlotte, just over the mountains from good old Knoxville. For those who say "It may happen in other places, but it won't happen in Knoxville", or "Knoxville won't have light rail for a long time" (to quote a certain top Knoxvile elected offical this week), I hope they open their eyes and see the possibilities. While Charlotte's bigger than Knoxville, it's very similar in many ways. Bottom line, it's another southeastern city a whole lot like us.

For those who would like more background, I'll share my recent experience with this Charlotte phenomenon. Monday before last, I was in the Queen City to attend the ribbon-cutting of the new light rail line. I went at the invitation of a friend who is on city council there, and had originally hoped to pull together (on short notice) a small contingent from Knoxville to go with me. I was only able to find one individual who could go, and unfortunately none of my fellow Knoxville City Council members were able to attend.

We left at 5:00 a.m., and arrived in time for the VIP breakfast, followed by the appropriate speeches from various political leaders and officials (inlcuding both US senators). Then came the ribbon cutting and the VIP rides on the system. We chose the ride to the end and back (ten miles one way), but others with less time took the fifteen minute round-trip excursion.

The system is absolutely beautiful, and is as good as any I've seen in any city in this country and abroad. It wasn't cheap, with a total price tag (including overruns) of around $300 million. That number carries with it the potential for sticker shock for those not used to the cost of big urban transportation projects (less than two miles of freeway in Knoxville's Smart Fix 40 project came in at a whopping $200 million). The system cost has to be looked at in the context of its total impact. Not only does it have the potential for taking huge numbers off the highly congested highways, but it has a wonderful impact on development patterns.

In Charlotte's case, as in the case of most cities that have built such systems, developers are eager to build higher desnity mixed-use projects adjacent to light rail stations. Prior to the opening of the LYNX line, they had already counted upwards of $1.4 billion in new real estate development in station areas along the line. Transit Orriented Development (TOD) is being recognized as a huge boon to cities, and a clear alternative to the typical (and costly) sprawl we've begun to be so concerned over.

What Charlotte has done is a model that deserves close attention. In 1997, they developed a regional vsion for transportation and land use that outlined an approach centered on rail transit spokes raidiating from the downtown core. The plan went to the voters in 1998 for funding in the form of a half cent sales tax dedicated strickly to transit. It passed by a narrow margin, and has funded a much improved and expanded bus system along with the beginnings of a great rail transit backbone.

The transit sales tax, and the great system it supported, faced a major threat this year. The LYNX light rail line that was under construction experienced major cost overruns, due mostly to forces beyond their control. In addition to a federal funding system that takes a decade now to get from initial plans and cost estimates to acutal construction (a situation that makes it impossible to budget), the skyrocketing costs of construction materials (resulting from Katrina recovery and new demand from China) hit them at the worst time. There was a backlash from anti-tax forces allied with anti-rail transit groups (who operate on a nationwide level). They got over 37,000 petition signatures and put a measure on the ballot to rescind the transit sales tax. Not only did their effort fail on November 6th, but it was denied by seventy percent of the voters. The transit advocates came out of that fight with the wind to their backs.

My friends in Charlotte have given an open invitation to bring as many people from Knoxville as will come, so they can share what they've learned with us. Stay tuned.

Link...

Over at School Matters, I did a post on how urban sprawl negatively impacts our schools in Knox County and why unplanned development is one of the main reasons why we had to go through the controversial rezoning of high schools last year. Now the school board is getting ready to face middle and elementary school rezonings.

From the post:

"Why is rezoning necessary? Historically, there have been a number of reasons: school overcrowding, economic disparities between school populations, attempt to achieve racial balances, etc."

"However, one of the main reasons why our current school rezoning is happening is because of the lack of thoughtful planning and management by our Knox County government. Developers are allowed to create new housing stock anywhere in the county without regard to the impacts it has on our school system. We are constantly playing 'catchup' with our schools, trying to place educational facilities wherever the whims (or the cheap land) of the development community takes us."

Indya Kincannon responded with a question about the power of MPC and Commission to limit development based on school capacity. She says that she has been told in the past that "the legal options for rejecting a proposed development are very narrow."

I think I have answered her correctly that the only test I've ever heard is the "arbitrary or capricious" test - in other words, a local legislative body can pretty much do anything with regard to zoning and development as long as it follows its own rules and applies them to everyone.

Anybody know something about this that I don't know? Feel free to jump in here or there with an opinion, legal or otherwise!

From the inbox:

There is a meeting scheduled tonight at Carter School at 6:00pm. The Development Corporation of KC is presenting the "options" for Waste Water treatment.

This meeting has been minimally advertised and area residents are trying to notify interested citizens in what some see as a colossal misuse of county money. The DCKC is pushing the business park because of a lack of inventory even though Knox County has 700 acres of land and more than a dozen industrial buildings in Knox County available.

More info here and here.

UPDATE: Knoxville News Sentinel report on the controversy and the meeting.

It appears a new Target is coming to West Knoxville.

A recent rezoning request was submitted that would expand the zoning for property on Kingston Pike ("south of Market Place Blvd., west of N. Cedar Bluff Rd.") to include "Mixed uses - Commercial (40 acres), offices, attached dwellings (apartments) and assisted living facility."

Now, word on the street is that the anchor tenant will be a new Target store, and possibly a large natural food grocery chain store. The Target store is an apparent certainty, and more information should be forthcoming tomorrow.

It's not clear what this means for the Target store near West Town Mall, with yet another Target Superstore already located nearby in Turkey Creek.

The property is already in the Knoxville City limits, so no one-man one-vote annexation will be necessary.

In his presentation on land use planning and sustainable development this week, Ed McMahon mentioned a couple of interesting programs you may not be aware of (I wasn't).

One is a farmland preservation program, funded by the farm bill. It looks like he is talking about the Farm and Ranchland Protection Program, one of several environmental and conservation measures in the farm bill. FRPP will provide up to $280 million per year for preserving farm land. Here's a summary:

• FRPP provides matching funds (up to 50 percent of the fair market easement value) to help State, tribal, or local governments and non-governmental organizations purchase development rights to keep productive farm and ranchland in agricultural uses.

• Participating landowners agree not to convert their land to non-agricultural uses and to develop and implement a conservation plan for any highly erodible land. Landowners retain rights to use the property for agriculture uses.

The catch is that it provides matching funds, so there must be a state farmland preservation program in place. I believe Mr. McMahon said that Tennessee does not currently have such a program, so it might be something worth looking at in the next legislative session.

Another program Mr. McMahon mentioned in a discussion about affordable housing is the Location Efficient Mortgage program. This is a mortgage loan that promotes living in "neighborhoods where residents can walk from their homes to stores, schools, recreation, and public transportation."

The fixed rate 15 or 30 year Location Efficient Mortgage recognizes the cost savings from not needing an auto as additional income for purposes of loan qualifying, meaning that a borrower who may not qualify for a conventional mortgage can qualify for a LEM, or can qualify for a larger loan. The goals of the program are to:

• Increase home purchases in a variety of location efficient communities

• Boost public transit ridership

• Support neighborhood consumer services and cultural amenities;

• Reduce energy consumption

• Improve local and regional air quality

At present, it is only available under a pilot program in Chicago, Seattle, San Francisco, and Los Angeles. It was developed by the Center for Neighborhood Technology, the Natural Resources Defense Council, and the Surface Transportation Policy Project, with funding from the U.S. Department of Energy, the Federal Transit Administration, the EPA, and several charitable foundations. Fannie Mae administers the program.

Mr. McMahon noted an interesting fact: The amount spent for a typical auto purchase will service an additional $100,000 on a mortgage loan.

Some of y'all might be interested in this report on a presentation we attended this afternoon. There's lots of good stuff to think about.

(The distinguished speaker mentioned the "shell game" of closing one big-box strip center and relocating it somewhere else. He mentioned that strip malls are overbuilt, and that far too many of them are sitting vacant as we keep opening new ones. I didn't address this in my report, but it sounded familiar.)

The state has halted a proposed commercial development at Norris Dam State Park:

Tennessee Department of Environment and Conservation (TDEC) Commissioner James Fyke said that after reviewing the proposal and public input on the project, the state will not allow the development to move forward in the state park.

According to the article, Fyke's letter says "At best, it would be a stretch to describe the proposed lodge as a component of the state park system. Placing a third-party commercial operation within a state park is not a precedent that we wish to set for all state parks."

The article also says that Bredesen refused to sign legislation that would have allowed the use of tax revenues from the proposed convention center/hotel to pay off $14 million in high-risk bonds issued by Campbell County to fund the project.

If these developments are such a great idea, why are taxpayers frequently asked to carry the risk?

Related: Norris Dam State Park

Friday's edition of the Knoxville News Sentinel had an insert called "Condo & Loft Living." The fine print at the top of the front page says "Advertising supplement to the Knoxville News Sentinel." Subsequent pages just say "Knoxville News Sentinel, Friday, August 17, 2007."

On page six, there's a feature article on "Lakeside Village", with the subhead "Look and feel of Norman Rockwell painting." It's accompanied by a photo of some elegant Charleston/Savannah style townhouses. The byline is by "Rhonda Robinson, Special publications correspondent."

The KNS does not have the "Condo & Loft Living" insert online, but you can see a fuzzy, cropped rendering of the photo that appeared in the KNS "special correspondent's" feature at Lakeside Village's website.

It looks pretty nice. Nice enough that the Mrs. wanted to drive down there and see them. But apparently "special correspondent" (fax transcriber?) Rhonda Robinson never went down there to actually see them for herself.

Here's what they really look like...

The Blount Co. land deal involving a local who's who of politics and business may result in some sweet tax breaks for the investors, according to one source.

The deal to purchase 5000 acres of land near the Great Smoky Mountains National Park (first reported here, with more details here), and put most of it into conservation could result in up to $50 million in tax breaks for the investors, according to another source.

That's OK, though. That five bucks you drop in the donation box at the entrance to Cades Cove is tax deductible, too. If you can itemize. And if you're not subject to the AMT.

Read more re. development, with a bonus quote from Blount Co. Mayor Jerry "The Developer's Friend" Cunningham...

Sen. Lamar Alexander, Ruby Tuesday's Sandy Beall, and Pilot Oil Corp.'s Jim Haslam have purchased 5000 acres near Townsend and the Great Smoky Mountains National Park for $19 million.

According to this Maryville Daily Times article, most of the property will be set aside for conservation, although some "low-density development" is planned by another parter in the deal, Knoxville developer Walt Lane.

The property is near Blackberry Farms. Sandy Beall says his son, who runs Blackberry Farms, will manage the new property in a similar manner.

There's been a fair amount of discussion on this forum about the Knoxville-Knox County Metropolitan Planning Commission. So I thought folks would be interested to hear there is currently a "city" vacancy on Commission (the Knoxville Mayor appoints 7 members; the County Mayor appoints 8). These appts do not require City Council approval, so the Mayor's decision is pretty much his to make.

During his first campaign, Mayor Haslam promised "balance" in MPC appointments. However, over the last few years, MPC has become more unbalanced, not less. It is now pretty much dominated by folks with development or real estate backgrounds.

I very much want to see the Mayor appoint someone this time with a strong neighborhood background. I'm not talking about a NIMBYite knee-jerk anti-development type, but someone who understands the POV and concerns of neighborhoods. It would be nice if that person also understand the functions and workings of MPC so that they can "hit the ground running."

It's not that hard to come up with names that fit this bill. If you're interested in moving MPC in the right direction, you might want to take a few minutes to contact Mayor Haslam about it. His email address is mayor@cityofknoxville.org.

As a follow up to yesterday's post about the Sentinel Towers TIF, sources close to the developer responded with some additional information about the project from their perspective. In the interest of equal time and fair play, here are some points they say should be considered:

• The developers did not ask for a penny from the taxpayers. They offered what the county says the property is worth. They ask for a TIF, but that abates only the increased value of the property created by the $50 million private dollars they are investing.

• Why a TIF? Economics. It cost about the same to build a 21 floor building here as in Nashville. Or Atlanta. But the rate you can get for rental or sale of space is far, far less. The numbers won’t work for a big building here without some incentive. The developers found a way to do that that (unlike many proposals) doesn’t ask for a penny. And we still pay the capital debt portion of the taxes in both the city and the county. The CBID levy is not abated at all. Every major building downtown (Riverview, FTPlaza, Bank of America etc.) has had public support, usually taxpayers paid for parking and/or land. Taxpayers don’t shell out a dime in this proposal.

• The County ran a very open, public process. The public wanted mixed used and that is what the developers proposed.

Here is a Frequently Asked Questions document (PDF format) about the project.