KNOXVILLE, Tenn. — The Knoxville City Council has approved a $138 million development project.
A resolution authorized the Industrial Development Board of the City of Knoxville to negotiate and accept property located at 1624 Riverside Drive from Dominion Riverside LLC through a payments in lieu of ad valorem taxes (PILOT) agreement.
The Knox County Commission also approved the deal.
The development will include 350 residential units, 30,000 square ft. for retail space and access to greenways.
According to the agenda, the project offers multiple benefits to the City and meets several Key Development Priorities of the City such as:
- Expansion of the permanent housing supply, including workforce housing
- Mixed-use development with a variety of unique retail opportunities aimed toward the activation of the city’s waterfront
- Redevelopment of an underutilized parcel
The development will be located within walking distance to downtown Knoxville, within close proximity to an existing KAT line.
According to the agenda, a third-party review of the project's financial forecast "concludes that an incentive in the form of a 12-year PILOT agreement following an expected 36-month construction period will produce a financial return that is effectively within the range of target returns that could be considered reasonable. PILOT payments after redevelopment are estimated to be $72,705 annually ($42,247 to City and $30,458 to County)."
At the end of the PILOT period, property taxes on the site would go up based on the property value at that time.
