BLOUNTVILLE – The Sullivan County Commission received its first public look at a request Thursday to work with the City of Bristol to provide up to $ 1.7 million in tax increase funding to a 37.5 million housing estate Bringing US dollars to a “tainted” area near Bristol Motor Speedway.
Bristol Tennessee City Council approved the plan earlier this week. The Sullivan County Commission is expected to vote on it next week. Bristol Housing endorses the project.
Tennessee law allows local governments to use funding from tax increases to offset the cost of redeveloping dilapidated areas to make the property easier for developers to use. The landowners continue to pay taxes on the affected land, but for an agreed period of time, a portion of their payments will be used to repay loans that are used to cover the extra costs of redevelopment compared to simply building on new land.
In that case, the developers would use the TIF money to, for example, remove existing asphalt, grave and other existing improvements, do grading, install rainwater and utility lines, and build roads.
The Overlook will bring around 158 new single-family homes to the five lots included in the project area.
The 96 detached single-family homes will be between 2,000 and 2,800 square feet, contain at least three bedrooms and two baths, and have an estimated purchase price of between $ 225,000 and $ 280,000.
The 62 townhouses will be between 1,600 and 1,800 square feet and feature similar amenities, with an estimated purchase price of $ 180,000.
Kingsport-based Danny Karst is the developer and attended a District Commission working session with his wife Carla on Thursday to answer any questions about the project. He said The Overlook was very similar to West Gate, a redevelopment of a former mall on West Stone Drive in Kingsport. West Gate, also initiated by Karsts and partners, has received TIF funding from the City of Kingsport and Sullivan County. Danny Karst said it will be completed far ahead of schedule.
The Overlook project is bigger than West Gate. The concept drawings for the houses to be built there are identical to those distributed for the construction of West Gate.
When completed, The Overlook residential project would increase its tax assessment nearly tenfold – from $ 753,955 today (with annual property tax revenues of $ 18,142 for the county and $ 14,976 for the city of Bristol) to nearly $ 7.08 million. Dollars (which generates new annual property tax revenue). from $ 152,084 for the county and $ 125,545).
After deducting government debt servicing (required by law), administration fees paid to Bristol Housing, and 35 percent “reluctance” for both the county and the city, the new taxes generated by the project will be up to $ 158,557 each Year to repay the $ 1.7 million loan that Bristol Housing will take out to fund the TIF. The loan is repaid over a maximum of 15 years.
According to the proposal, over those 15 years the annual new monetary benefit for Sullivan County (35 percent “restraint” to growth and “debt service”) would be $ 48,460, while the figure for Bristol would be $ 60,268.
The Sullivan County Commission will meet on October 21 at 6:00 p.m. on the second floor of the historic Sullivan County Courthouse