Development officials are reporting a positive annual review of tax increment financing projects in downtown Johnson City.
Dianna Cantler, Johnson City Development Authority director, told members of the County Commission’s Commercial, Industrial and Agricultural Committee last week that while no new projects have been added to the TIF district since the last update, she highlighted projects that reached successful conclusions in the past year.
Cantler also told county commissioners last week the JCDA has offered JC Ventures $175,000 to retire its TIF obligations for the Tipton Street revitalization project, which was one of the first redevelopments in the downtown TIF district.
She said said removing the JC Ventures commitment from the JCDA’s ledgers made sense because the agreement was more akin to “tax abatement” than the TIF plans now structured in the district.
The TIF district currently has a total of $4.9 million loan debt on its books.
Property tax revenues are set at a base level for a TIF project and all revenues realized beyond that amount are placed in a dedicated fund managed by the JCDA.
Those funds are then used to enhance and improve amenities in the district, such as streets, sidewalks, lighting, signage and landscaping.
Cantler told county officials three distinct TIF projects have stood out in the past year.
The Model Mill
Cantler said work on the Model Mill on West Walnut Street is now 95% complete with just one small building on the former flour mill site remaining undeveloped. She said the structure is in “pretty bad shape” and developers are assessing its potential for renovation.
Meanwhile, Summers-Taylor has successfully moved its headquarters and 30 corporate jobs to the Model Mill.
East Tennessee State University has moved its alumni and foundation offices to the first floor, and the the Chamber of Commerce of Johnson City/Jonesborough/Washington County is expected to be in the building by the end of the year.
The offices of the Baker Donelson Law Firm are also in the Model Mill.
Cantler said “class A office space” is still available for lease on the building’s fourth floor.
The WataUGa Brewing Company
Cantler said the Watauga Brewing Co., 142 W. Market St., had a successful opening in the last year. The business has more than 35 employees and offers a restaurant and brewery with rooftop dining.
As a result of the developer’s investment at the site, Cantler said other property owners on the block have made improvements to the facades of their buildings.
Legacy Circle At King Commons
While this project was not part a TIF loan, Cantler said the Natural Adventure playground and the Historic Circle exhibit at King Commons have become a popular draw to the redevelopment district.
“It’s amazing to see the number of families there on a Friday night,” she said. “It’s driving revenues to our restaurants.”
