City Council approves tax incentive for Northshore Town Center

Knoxville City Councilman Nick Della Volpe, left, gives his opinion on different issues during the council’s Feb. 22 meeting, while Councilwoman Marilyn Roddy, right, listens. (Photo by J.J. Kindred)
By J.J. KINDRED
J.Kindred@theknoxvillejournal.com
During a short meeting Feb. 22, the Knoxville City Council approved a $3 million tax incentive to help finance the Northshore Town Center in West Knoxville.
According to Bill Lyons, policy and communications director for the city of Knoxville, the tax increment financing, or TIF as it is known, will help with infrastructure improvements already needed by the city.
Documents stated that the development plan for the project was originally approved in 2006, pleading $9 million in tax increment financing (TIF), with $6 million from the county and $3 million from the city.
The project does not require allocation of current funds, according to documentation.
Located at Northshore Drive and Pellissippi Parkway, the Northshore Town Center would include small retail shops, a grocery store, restaurants, a bank, a discount store, apartments, a theater, hardware store, health club and an assisted living facility. It will be built on 150 acres.
Developers Northshore Market Investors LLC will go to the Knox County Commission during its Feb. 28 meeting, seeking $6 million in tax increment financing, in addition to the $3 million TIF.
Once approved, the Town Center project would go back to the Knox County Industrial Development Board to negotiate the final development agreement and construction would begin immediately.
Upon completion, the new revenue generated by the development will pay off the infrastructure improvements, including improvements on Northshore Drive, and the widening of a bridge on Northshore near Pellissippi Parkway.
During the vote, councilwoman Marilyn Roddy excused herself from discussion and voting on the project, because her family owns property across the street from where the development would be built.
Councilwoman Brenda Palmer said she was reluctant in dealing with TIF issues, but said, “the return on this investment will surpass what we have, and I will support this.”
In other business, the board approved a resolution to authorize the Knoxville Transportation Authority to enter into an agreement with the firm of Frantz, McConnell and Seymour to provide legal services to the KTA Board and Knoxville Area Transit (KTA).
Councilman Nick Della Volpe said while he was glad KTA was using the firm, he was concerned about the oddity of advertising and solicitation for the agreement.
“It seems to me that our competitive bidding process is not working,” Della Volpe said. “I don’t have a quarrel with a competent law firm to represent (KTA), but I’m surprised they had an alternative means to represent them.”
Della Volpe said he talked to the Knoxville Bar Association and was able to e-mail attorneys and solicit involvement.
“If we don’t invite competition and analysis in different entities, we need to be smarter in how we deal with this,” he said.
Boyce Evans, purchasing agent for the city, said the city’s procurement code doesn’t require competition for professional services.
“For professional services in this instance, only one entity responded, ” Evans said. Those services cover a wide range of areas. Normally we have a whole lot of entities, the way the market is now, but to say the system does not work is not accurate.”