A citizen watchdog group said a proposed city TIF (Tax Increment Financing) at Cameron Harbor on the west side of Cameron Hill "is not what TIFs are designed to do."
City officials are set to bring the TIF proposal that would be carried out in conjunction with a Nashville developer for an extension of MLK Boulevard across Riverfront Parkway to the new section of Riverwalk.
Helen Burns Sharp of Accountability for Taxpayer Money (ATM) said this type TIF project requires prior state approval because it involves private land, it is for "general economic development" and not in a blighted area, and it may exceed the standard term of 20 years.
Ms. Sharp said the project is "on a fast track." It goes before the city Industrial Development Board on Monday at 11 a.m. She said that is the only public hearing planned. It is set to be heard by the City Council on Tuesday and is expected to be considered by the County Commission this month.
The TIF is in partnership with Evergreen Development, which has four parcels near Riverfront Parkway and MLK Boulevard that it is getting ready to develop. Cherita Allen, deputy economic development director, said a building was planned to go directly across from MLK.
She also said that the city has always planned for an extension of MLK Boulevard, but does not now have the money in its budget.
Evergreen is to carry out the project and be repaid with a portion of the enhanced tax proceeds from the four parcels. Evergreen expects the road project to cost about $4 million to $4.5 million and be repaid through the TIF in eight years, it was stated. The maximum length of the TIF is put at 15 years.
Ms. Allen said there will be 36 units of housing as part of the $50 million project set aside as for "work force" rates. She said that is not the same as "affordable" housing, but still at a reduced rate. The work force rates will go away when the TIF ends.
Officials said the school portion of the taxes would not be affected.
Officials said there will be over 400 jobs during construction and 90 jobs, plus some office positions, on an ongoing basis.
Evergreen will finance the road construction through Pinnacle Financial Partners.
The road will go to the Blue Goose Hollow Trailhead on the Riverwalk.
Officials said an economic impact study was completed on the project.
The roadway will be deeded to the city when it is completed. It is to include wide sidewalks, a bicycle lane and public parking.
Evergreen has control of a portion of the property and has an agreement to buy the rest from Newton Chevrolet, it was stated.
The development is to include 180 mid-rise apartments with pool and fitness club, 4,000 square feet for a locally-owned restaurant, and 30,000 square feet for a medical-related office building.
ATM is questioning whether this TIF is a qualified project under the state statute and city policies and procedures.
Click here for the full ATM report.