Local activist April Eidson said she has written Rep. JoAnne Favors to ask her to seek a state attorney general's opinion on whether a Tax Increment Financing (TIF) project for a group seeking to develop the top of Aetna Mountain above Cummings Cove is "a qualified project" under state law.
The City Bond Board on Monday approved the issuance of up to $9 million in bonds for the project by developers Doug Stein and Gary and Bobby Chazen. That is for construction of a road up the mountain along with a sewer line.
The board's approval was contingent upon the issuance of an opinion affirming that it is a qualified project by either the state attorney general's office or George Masterson, Nashville bond counsel for the developers.
The City Council on Tuesday night set a 90-day moratorium on additional TIFs until guidelines are developed on their use by the Regional Planning Agency staff.
The TIF for the Black Creek group was the first here, though attorney Mike Mallen said they are common in Knoxville and other cities.
Under the Black Creek TIF, the developers will put up the initial funding for the project and be repaid from enhanced tax collections from the TIF District at the new development.