Tue
Dec 18 2007
12:12 am
By: Sandra Clark

Just left County Commission. Tim Graham, accompanied by a small army of advisors, won round one on his TIF. The final vote was 8-2-1. This after Pinkston amended to provide if even one sliver of the land is annexed the whole TIF must be paid off immediately (Graham can just add it to what he charges the city for the "voluntary" annexation); Larry Smith said he hadn't heard from a single Halls resident who opposes the development and/or TIF; and Craig Leuthold viciously amended the $4 million request (which had gone verbally to $6 million) "down" to $5 million.

God's side voters were Mark Harmon and Tony Norman. Scott Moore not only recused himself, but he left the room. -- s.

mbradley's picture

Graham wins in Halls with

Graham wins in Halls with the support of a 7th district commissioner and Jernigan loses in South Knox without the support of a 9th district commissioner. Obviously having the support of the "home" commissioner is specifically important in many of these matters that come before commission.

Draw your own conclusions about the importance of an appointment for the 4th.

Bbeanster's picture

Not applicable

County Commission doesn't hear zoning issues for the 4th District, which is entirely within the city limits -- those issues go to City Council

mbradley's picture

Yeah, but we all know that

Yeah, but we all know that the desires of the "home" commissioner go much farther than just zoning issues.

And, that isn't completely accurate. I live in the 4th and am not within the city limits.

Bbeanster's picture

You are in a distinct

You are in a distinct minority. how did Victor miss you?

Sandra Clark's picture

District Four

Richard Cate was roaming around in the back of the room so I made sure to thank him on behalf of the citizens of Halls for his district's contribution to our 1/2 mile of greenway, several yards of turn lanes, 3 traffic signals and a (probably dead) partridge in a pear tree.

Point is -- it's not what the 4th District gets but what they give while unrepresented. -- s.

Bbeanster's picture

So WWRCHD (What would

So WWRCHD (What would Richard Cate have done)?

LOL!

mbradley's picture

Posted at the KNS this afternoon

Three citizens have filed a motion in Knox County Chancery Court asking Chancellor Daryl Fansler to order Knox County Commission to appoint replacements for 12 vacant offices.

Surprise, surprise, surprise....

reform4's picture

Betty- there's a huge chunk

Betty- there's a huge chunk of Fourth that isn't in the city- all of the Riverbend penninsula, Fourth goes all the way down Northshore to Hart Rd.

There are a few issues that come up- there's a sign variance in Rocky Hill not far from where I live I need to check into before the Wed meeting.

-----------------------------------------
Fighting for Reform and Representation, Fourth District
Steve Drevik, Commission Seat 4-B
(link...)

SHarris's picture

Larry Smith lied

I contacted Larry Smith by e-mail to voice my oppositiion. His response:
Thank you for your imput on the matter. I have gotten a lot of calls on
this one. Most of them however have been for the new Lowes and the other
stores it will bring. The votes are about 70% for 20% against, and 10%
concerned about changing the stream flow.

jbr's picture

"Most of them however have

"Most of them however have been for the new Lowes and the other
stores it will bring. The votes are about 70% for 20% against"

Those look like contradicting sentences in succession. Could you clarify?

SHarris's picture

"most of them..."

I just copied Larry Smith's response to me when I e-mailed him and told him that as a Halls resident I opposed the Graham development. He responded that 70% of the people he had heard from were for the development, 20% against, and 10% were concerned about the stream flow.

Yet in Sandra Clark's report on the meeting she indicates that Larry Smith said he had not heard from any Halls residents who opposed the development.

Does anyone know if there is a tape or online replay of last night's meeting?

D Mac's picture

Creative lying

Our Larry said he has not received any phone calls about this project.

Check with Community TV and see when it will be replayed.

SHarris's picture

Thank you

Thank you for the clarification about Larry Smith's remarks. He's kind of splitting hairs, seems to me.

jbr's picture

Is there a source that shows

Is there a source that shows the resultant actual cost benefit analysis for particular projects that have received TIFs in the Knox County area?

It has been said several times before, but building these new entities within Knox County just seems like 'funny money' just being moved around.

Whether they buy something at Lowes down the street or 5 miles away does not seem to have any different
tax benefit. Same with jobs. Last I saw Knox county unemployment rate is 2.8%. Thats full employment. The types of jobs Graham etc are creating are low wage jobs. Are they really creating new jobs or just moving low-paying jobs around in the county?

Once you have a few stores providing what you need in a metropolitan area, that seems to be the extent of
new sales. Adding more stores past that initial level of area coverage doesn't change anything but sales point.

I would like to see net impact of TIF by project. In other words if they go to Lowes and buy nails, but somewhere else in area now sells fewer nails by the same amount, then there is no net benefit. In fact its a loss because of TIF.

Bird_dog's picture

Graham will have to make his case to IDB

As I understand it, the hapless CC has now charged IDB with reviewing Graham's economic impact plan and holding public hearings. IDB will then vote whether to submit the TIF back to CC for approval. Mike Edwards did not seem to be in favor of this type of TIF - opening a Pandora's box - and, I thought, tried to explain to CC that they were responsible for initially directing IDB and not the other way around. CC could have just said "no" and that would have been the end of it. A new shopping center and greenway at this location is not something the county has said "if only we could do this", rather it is a proposal by a private business to get subsidy for the project.

As I understand the TIF policy, the "Incremental" property taxes in the Plan Area, including residential, would be designated 60% to offset the TIF for 15 years. the sales tax argument is bogus in my opinion - simply cannibalizing from existing businesses - and poorer counties.

As far as property values go, residential values may go down - resulting in no incremental taxes, or rezoning to commercial would increase values (and taxes) for owners prepared to sell.

The basic premise is flawed. The idea did not originate from CC, but from a private developer.

SHarris's picture

Losses

My guess would be that Lowes and Home Depot will negatively impact Tindells and Mynatts. Instead of local businessmen making a profit (and spending that profit locally)we will now have big businesses making the profit. How does that benefit the Halls community?

Sandra Clark's picture

Our Larry

Larry Smith also said that James McMillan (Smith's opponent in the last election) was for the Graham project. McMillan happened to be present. He stood and opposed it.

At another point, Smith called on Roy Arthur (who works for Knox County). Arthur mumbled about tree canopies being good, and Smith "summed up" Arthur's remarks as an endorsement of the TIF by Roy Arthur of the Beaver Creek Watershed Association.

I doubt the BCWA would endorse the TIF any more than McMillan did.

Smith has a problem with the truth -- either seeing it or speaking it -- possibly both. -- s.

Ragsdale2010's picture

Edwards stooging for HolRob other developers

Our highly paid knower of all, capable of nothing, Commissar of the Chamber, Mike Edwards, was up there stooging for HolRob and the other developers who don't go the TIF route, as I dare say they know that the property value of land adjacent to a big box development doesn't really go up with the opening of the center, particularly when it's zoned residential and the commercial uses are banned by the current land use restriction. Also, it makes future development/acquisition of the other parcels of land incredibly expensive as the county just goes out there, reappraises the property, the taxes go up, and viola "TIF financing". The greatest obstacle to these big box development shops like Graham, HolRob, Horne, etc. are (1) high interest rates and (2) expensive property. Once the property gets expensive, the big tenants don't want to pay the corresponding high rent, so they go somewhere else where the land/revenue returns are better.

Edwards used to work for HolRob and the developers hidden within the turkey creek world out west. He's essentially a shill for the developers in town, but, he's made a lot of money by getting food all over his tie while eating with a bunch of the high dollar crowd in Knoxville. He's not as smart in person as he appears on these public appearances, he get his talking points from other developers and their prospective tenants.

reform4's picture

jbr- just as a point of

jbr- just as a point of clarification, the TIF is supposedly repaid by increased property taxes, not sales taxes. From the County government's perspective, a glut of commercial real estate is OK, since you have to pay property tax on a commercial building whether it is occupied/selling anything or not (unless the owner goes bankrupt, of course).

But I think SHarris makes the more salient point- that the net income from big box stores moves immediately out of state and is not "recycled" in the local economy (the documentary "The High Cost of Low Prices" makes this point extremely well). That's the biggest problem with encouraging development of big box stores- you eventually cut the throat of your local economy in certain sectors (hardware, office supplies, toys, fabric/hobby, groceries).

We should not be subsidizing big boxes and do nothing for the local business development. I'd like to build a new office for my company, but I kinda doubt Commission is going to hand me the $15,000 I'd be creating in new property taxes. Maybe I should go apply for a TIF just to make a point that we've set a bad precedent.

-----------------------------------------
Fighting for Reform and Representation, Fourth District
Steve Drevik, Commission Seat 4-B
(link...)

Bbeanster's picture

There is an empty,

There is an empty, pebble-encrusted big box on Broadway (where the historic Williams House used to sit) that used to be a target store.The new Target at the Farmer's Market appears to be thriving, but I wonder how well it's really doing when you minus out the cost of vacating the Fountain City store. It's been empty for the better part of a year now.

jbr's picture

So factoring in the other

So factoring in the other costs associated with these developments (infrastructure, etc.) is the county really making a net gain?

My guess is CC, etc. like redlight packed congested areas. You have to sit in traffic and burn gas. Then buy more
generating more tax income.

Looks like some organized groups out there trying to get a handle on big box chains run amok.

(link...)

Lisa Starbuck's picture

Empty Big Boxes

Besides the Target that Beanster mentions who vacated a big box on Broadway to go to the former Farmer's Market property, we also have the vacated Circuit City that left an empty big box at the Knoxville Center Mall to go next door to Target; the Old Navy that left their store in the mall to go to a freestanding store next to Target; and there will soon be a big ole empty Walmart in Halls that is leaving to go a little ways down the street to a brand new store in a flood zone next to a residential neighborhood.

These are just the immediate ones that come to mind - I'm sure there are others all around the county. If you know of an empty big box, feel free to add to the list!

Not that listing them here will do much good - I've got a feeling we're going to have a lot more empty stores once the developers realize they can get free money from the gubmint to build new ones. TIF's for all!

Factchecker's picture

I'm sure there are others

I'm sure there are others all around the county.

You mean country. Them's the rules of the game. If it starts to look or feel more than a few years old, it's time to build a replacement in the newest sprawl zone nearby. Who cares what happens to the old big box? Maybe "they" can tear it down and restore the historic home that used to be there, or build a farm or something. [/snark]

It's about the hidden costs of sprawl. And the big boxes are hugely more offensive in this regard than the lil' fast food outlets and the like.

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