East Ridge’s Industrial Development Board met Tuesday afternoon and finalized a development agreement for the development of a retail complex on Mack Smith Road.
The IDB will provide $30,000 a year for the next 20 years to Mack Smith Commons LLC, the legal entity building a 5,500 square-foot building on the corner of Mack Smith and Ringgold Roads. The site, formerly home to Long John Silver’s, will house a Firehouse Subs, Dunkin Donuts and a hair styling business, officials said.
In October of last year, officials told the IDB that the new businesses 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.
The incentive payments to developer Tracy Hopkins-Tindall 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.
City Manager Scott Miller told board members that he anticipated the construction of the new building to be completed in about four months.
After the 4-0 vote by the board to accept the development agreement, Miller said, “that’s the first agreement completed.”
The IDB is anticipated to finalize a second development agreement with Suhash Patel in the near future. Patel is building a 6,500 square-foot building at the corner of Truman Avenue and Ringgold Road that will be the future home of five businesses, including a Marco’s Pizza, a Highway 55 Burgers, a Great Clips barbershop and two other retail stores.
In this deal, the city will provide $1 million in incentives stretching over a 20-year period. During that period, officials said, the businesses located at the site would generate $3.2 million in state increment sales tax, which East Ridge would capture, and more than $800,000 in local sales taxes. In addition, the property would add close to $250,000 to city coffers in the form of property taxes.
If the businesses in the strip mall fail to generate projected revenue for the city, the incentives to Patel would be reduced accordingly.
In other city business this week, the Beer Board approved the application of an off premises beer permit to Mac’s Convenience Stores LLC. It was explained during the meeting that the Kangaroo Express at 6708 Ringgold Road is changing hands. Mac’s Convenience Stores LLC is a sister company of Circle K Stores and both are wholly owned subsidiaries of Couche-Tard. There will be no change in branding, management or on-site staff as a result of the transition.
The Beer Board also heard from East Ridge Police Chief J.R. Reed. Chief Reed, who in last month’s meeting briefed the board on problems associated with the End Zone, told the panel that he would provide its members with more information about the bar and grill in next month’s meeting.
Earl Wilson, a recent appointment to the Beer Board, asked Chief Reed about recent calls for law enforcement at the establishment. Chief Reed said there had been “nothing extreme” of late.
The Beer Board is asking for the help of the City Attorney in updating ordinances that deal with beer sales and consumption.
“We need to get teeth in our ordinances and make sure everyone follows them,” Wilson said.