City Council Called Meeting Friday at Noon to Discuss Support of a New Retail Development

Will a new shopping center in Crossville require an investment of tax dollars?

The Crossville City Council has a special called meeting set for Friday, September 14 at noon to discuss supporting the possibility of a proposed new shopping center along Highway 127-N slightly less than a mile from I-40.

Preliminary design for the proposed shopping center

The lone item on the agenda is listed as “discussion and action of Cumberland Crossings retail development.” The city has been working to improve the local retail market including hiring a consultant to help them recruit more retail businesses. The consulting firm connected the city to the developer of the proposed center, Carolina Holdings, Inc.

The proposed center that has a number of names listed on the paperwork with the agenda is expected to include a nearly 50,000 square foot grocery store, another 50,000 square foot anchor store and smaller shops and out parcel sites.

During the city council's April meeting earlier this year the council went on record and voted their interest in supporting such a project. City manager Greg Wood discussed a bit about the preliminary work on the project then saying, “There are some capital needs for this.” Wood explained to the council in April that the city was looking into Rural Development funding as well as TDOT money for intersection development.

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In the April meeting Wood said that the specific retail firms for the development have been in talks but it was too early to reveal them but the developer “wanted me to relay was this is a kind of a once in a lifetime opportunity, the group of retailers they have brought together, if we don't come together on this deal, the likelihood of them returning again to look at Crossville is somewhat slim.”

A proforma financial plan was attached to the agenda for the Friday special called meeting estimates the total project cost at $40,836,753 with a required return on investment of 9 percent but the project as currently designed only makes 6.86 percent. The firm states that even after a reduction of $250,000 of city permits and fees and sales of out-parcel lots, an additional $6.5 million is needed to make the project work financially for the developer.

It is unclear what actions the council will take on this matter.