The city’s Industrial Development Board approved on Tuesday an incentive agreement with an area developer to build a 5,500 square-foot building at the corner of Ringgold Road and Mack Smith Road.
Tracy Hopkins-Tindall of Stonecrest Properties asked the IDB for $600,000 over a 20-year period to assist in tearing down the old Long John Silvers and construct a new building for three retail tenants. Hopkins-Tindall said two of the tenants for the building are Dunkin Donuts and Firehouse Subs. A third tenant will be named later.
Those businesses, according to the developer, would generate a total of $2.1 million to the city over 20 years through local option sales taxes, property taxes and Border Region incremental sales tax. The net proceeds to the city would be about $1.566 million.
“I think what the IDB did (Tuesday) is great,” said City Manager Scott Miller, following the unanimous vote to approve the letter of intent concerning the incentive agreement. “It will help the city and provide financial assistance (to the developer).
“This will open up some doors when people see what’s going on in East Ridge,” Miller added.
The $600,000 will be paid to the developer in yearly payments of $30,000, officials said. Those payments will not begin until 2018, officials said. If the sales figures for the stores at the building fall short of projections, the city’s yearly incentive payment would be reduced.
Board member Bart Burns asked if the developer would be eligible for a potential property tax “rebate.” Mayor Brent Lambert, who was present at the meeting, said that although that would be possible, he did not anticipate any property tax abatement in the future.
The IDB’s approval of the project must now go before the City Council for a vote, Miller said. If the Council approves the project, the IDB would then take action on a finalized development agreement.
Hopkins-Tindall said that she is still looking for a third tenant. However, she said that the Hamilton County Water and Wastewater Treatment Authority (WWTA) would not allow another restaurant to go in the space.
Hopkins-Tindall told the board that she expects demolition on the existing building at the location to begin next week and the new construction to be completed by next June.
Ruth Braly, the Chairperson of the IDB said projects like this one was the reason the Border Region Act was devised. “I like this deal,” she said.
Notes: City Manager Miller said that he and other city officials recently met with the WWTA. Miller characterized the meeting as “good.” He told the board that the WWTA is “getting the dollars together” to rectify the infiltration and influx problems plaguing the city’s sewer system. Miller said that the WWTA has approved construction projects for Life Care Centers, Parkridge East, the Fire Hall and the hotel on Camp Jordan Road.
Mayor Lambert told the IDB members that old manhole covers on city streets that have holes in them and allow storm water into the sewer system are being replaced. This will help the infiltration and influx problem.
Mayor Lambert told the board that he expects “any day now” an official announcement from the developers of Jordan Crossing concerning the construction of a new hotel across Camp Jordan Parkway from the Bass Pro Shops.
City Manager Miller told the board that bids for construction of the city’s new fire hall on St. Thomas Street are going out. Those bids will be opened on Oct. 20 or 21 and the awarding of the bid will be on the City Council agenda perhaps on Oct. 27.