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A future retail and commercial development project in Boones Creek took its first step toward reality Friday morning, and local officials believe it will keep Johnson City on top when it comes to regional retail dominance.
At a joint meeting of the Washington County Economic Development Council and Johnson City Development Authority, the organizations approved a plan creating a tax increment financing, or TIF, district that will spur private development on about 100 acres of undeveloped land off Boones Creek Exit 17 of Interstate 26.
Tax increment financing, or TIF, is a method utilized by local governments to pay for community improvements with future tax revenues. A TIF plan is approved by a local government to redevelop an area by paying for the cost of public or private improvements out of future growth in taxes attributed to the new development.
“The reason we’re doing this is one of our objectives ... is to solidify and enhance Johnson City’s position in Washington County as the dominant retail location in the Tri-Cities region. That’s what’s driving us,” Economic Development Council CEO Robert Reynolds said.
According to 2011 retail figures, Reynolds said Johnson City led the Tri-Cities with $1.888 billion in retail sales, compared to Kingsport’s $1.456 billion and Bristol’s $1.015 billion.
The Economic Development Council has partnered with Johnson City-based Mountcastle Development in the Boones Creek project. The council has the property under option for the next three years.
The property, which is commonly known as the Young Farm, is located within the Tri-Cities’ wealthiest area, according to Roberts, and will strongly play into the future growth of the community.
Both Johnson City Mayor Jeff Banyas and Washington County Mayor Dan Eldridge said this project will help the city and county compete with surrounding cities when it comes to future retail development.
“This is a very creative solution to help level the playing field, if you will, between Washington County and Sullivan County,” Eldridge said.
Banyas said this plan has been discussed for more than a year and was ultimately decided on for its potential to bring new jobs to the area and increase the sales tax base in the county.
“Johnson City’s had one tax increase in 19 years and the reason for that is we’ve been able to grow and the growth in the sales tax has been able to grow and the growth in the sales tax has been able to take care of the growth in the city and Mayor Eldridge and I both recognize that this is important for the city, the country and our school system, and we need to do everything we can to encourage that sales tax base to grow,” he said.
Development is expected to take several years, and will proceed in phases. Both Washington County and Johnson City commissions will have to sign off on a specific TIF plan.
jcresident writes:
February 8, 2013
11:17 AM
Thats what we need- another retail development when so many are being built and there are tons of vacant spaces.
bluemoon41 writes:
February 8, 2013
11:30 AM
jcresident has a great point. why don't we fix up what we have and then expand?
mmullen757 writes:
February 8, 2013
11:34 AM
The only thing that I am aware that is empty is the South Roan Street shopping center. I don't see any major retailer having an interest in that site at all.
State of Franklin & North Roan are full with no place to grow. Why not develop in Boones Creek? Makes great sense to me.
jcresident writes:
February 8, 2013
11:49 AM
The development across from the post office has many vacancies and they had intended on being larger but doesnt seem like it can get anyone in there. A lot of those smaller strip spaces along state of franklin have vacancies I believe. Also, we have 2 developments under contruction in Bristol, another at the 81/26 intersection. The one at 81/26- hasnt it had trouble finding people to occupy these spaces once its built? How much demand is there? I just think these developers get way over their head sometimes.
kittykat writes:
February 8, 2013
3:49 PM
@CockJohnson: This will create jobs. If they develop and open new businesses out there, do you think the businesses will run themselves? New development = New jobs.
I'm excited to see the community growing. It's also nice to see a positive story on the JC Press web site. It's depressing to read about meth busts and various other crime reports day after day.
zarj17 writes:
February 8, 2013
5:39 PM
There is a smart way to grow one's community and this doesn't seem to be it. We will wait and see how the urban design on this lot plays out, but I'm willing to bet it's more of the same "North Johnson City" ugly big box mess. The community will probably come to regret this decision in a few decades...
Remove Money from Politics writes:
February 8, 2013
9:51 PM
If it means I don't have to drive as far to shop, I'm good with this.
This is different than the I-26/I-81 mess which was a dumb idea to begin with. No one lives within 5 minutes of that interchange - there is no city there either. I don't know anyone who wants to go out of their way to that nightmare of an interchange just to shop.
tenngirl1 writes:
February 9, 2013
7:10 AM
Well, another piece of my childhood memories will be gone. So much of the area I remember growing up are covered with businesses. I really hate to see this happen.
pctechman7 writes:
February 10, 2013
10:26 AM
Great for the area, progress means more jobs. Johnson City is really a great place to live.
provided.