While it appears Crossville city council could offer some assistance to the company that plans to renovate the old K-Mart building into a Rural King it may not be what the company is requesting.
During the city council work session Tuesday, the council discussed the issue and council member J. H. Graham said he wanted to offer the company a payment in lieu of taxes (PILOT) program of 50% of the property tax on the building for 15 years and a $300,000 loan at 1.5% under New York prime.
The company is seeking what is essentially a $300,000 grant they are calling a loan to be repaid by additional sales tax revenue they will generate. Several council members expressed concerns about providing assistance to the company that will be competing with other local businesses in town. Mayor James Mayberry said he had received some 16 calls from businesses that would be affected by the company
City attorney Will Ridley said that the city cannot legally give what is essentially a grant to a private company from taxpayer funds. In order for a PILOT to be accomplished, the company must transfer ownership of the property to the Industrial Development Board (IDB). The IDB then leases it back to the company for $1. In addition, the IDB would be the conduit for the proposed loan to the company but it would have to be paid back.
The council already approved not charging the company for the necessary building permit for the store renovation.
The council will take up the company's request at their regular meeting on April 9 at Crossville City Hall.
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