Crossville CIty Council goes on record in support of incentives to locate new retail development on 127-N

During the April Crossville City Council meeting, members heard an update on the progress made by the firm the city hired to try and recruit additional retail and restaurants to Crossville.

According to the report given by City Manager Greg Wood, the company has been working with a North Carolina developer on a piece of property along 127-N. This is the same property that was optioned 18-24 months ago for a development that never went forward. The new proposal may require the participation of the city in support of new retail development and council approved a motion to offer “reasonable support” to facilitate the project.

Map showing the location of the proposed site of new 

retail development by Carolina Holdings, Inc.
(From CHI website)

According to Wood, some letters of intent have been signed on the new proposed development but nothing is final yet.

Preliminary design of shopping development

on 127-N. (From CHI website)

The company was known as r360 but has since changed their name to NextSite. Wood explained that the firm had been attending conferences on the city's part and have met with developers and tenant representatives and retailers. They are also visiting developers at their offices on a continuing basis.

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“One of the proposals/developers they have brought to us is a group called Carolina Holdings, Inc.” Wood told the council. “They have an option on the property just north of the Chevrolet dealership. They are very successful and developed the project at Mt. Juliet.”

Wood added that they have recruited some retail firms that he couldn't discuss yet, “but one thing they 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.”

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“There are some capital needs for this and we've been in consultation with some specialized attorneys as far as TIF funding.” TIF is Tax Increment Funding that earmarks future tax revenues to pay back funds borrowed for development.

Wood added the city has also been looking at some possible Rural Development funding as well as TDOT funding for intersection development.

“We just need to show them that the city is committed to this development as the city attorney, myself and the Mayor meet with the various attorneys that specialize we will bring back to you a recommendation how best to potentially make an offer on behalf of the city as far as partnering with this retail group,” Wood explained.

Property for the proposed retail site is currently

listed as owned by Woodmere Properties III.

Wood told the council, “I realize this sets a bit of a precedent as retail is not something typically done but to enhance our economic development in other areas. The new CEO of Crossville Inc. lives in Knoxville mainly because we don't have the amenities that his wife was asking for here so he commutes from Knoxville every day.”

“We need to bring in retail establishments to enhance our capabilities for the industrial jobs we want as well. Plus we have a leakage situation where we have people shopping in Cookeville instead of here and that solves our tax dollars going to Cookeville,” concluded Wood.

Wood described the project as a good prospect and a good location being close to I-40 and will pick off people from outside the county as well.

Councilman J. H. Graham moved that the council go on record as supporting the project saying, “I believe it is important that the city of Crossville show these developers that we are well versed in dealing with developers and using incentives for manufacturers and now we are looking toward providing incentives for developers of retail shopping areas.”

Graham's motion was to continue negotiations with the full intent of providing a reasonable incentive program for them to improve the retail growth in this community. Council member Pamala Harris supported the motion and it was passed unanimously.  

City Council hears proposals from Retail Research Firms to consider for 2016-17 Budget

The Crossville city council heard from three firms that provide consulting work on recruiting nation retail chains during a work session May 26.

The city has discussed this possibility before but has not yet taken the plunge to work with the firms that provide data on the community, the gaps in retail available here and the so-called “out leakage” of spending to other area shopping locations. The three firms that spoke to the council included Retail Strategies, R360 and Buxton. All three companies pitched their services to the city with the idea that they could help increase sales tax collections by recruiting large retail stores and restaurant chains.

Brook Holbert, right, of Retail Strategies speaks to Crossville city council.  Also pictured left to right are Pam Harris, Pete Souza, Billy Loggins and Mayor James Mayberry.

The kind of data that the firms aggregate and interpret include trade areas such as where shoppers come from, types of consumers and how ans where consumers spend their money. The data can help to show how Crossville compares with other communities and that comparison can be used to look at similar communities and the retail operations that they support. This allows the city to approach the retailers that are not in Crossville but in similar locations and to encourage them to also locate at Crossville.

Two of the firms offer their services for $90,000 to $110,000 over three years of consulting. The larger Buxton firm's proposal totals $160,000. Buxton is one of the top firms in the business and has an exclusive agreement with VISA card to access data on purchases to help with their research.

One other interesting aspect of the research that each firm discussed was the tracking of cell phones to determine how many shop in a particular store in Crossville and where they come from. This tracking of the number of cell phones within a specific area was a part of the research planned by the firms.

Following the presentations, the council members will consider the information and determine if such a project will be included in the city's upcoming budget.

Called meeting and work session keep Crossville council busy this week.

The Crossville city council has two meetings set up for this week. A special called meeting may 23 at noon to deal with a long running eminent domain matter related to the Northwest Connector and a request from the Crossville dragway for sewer service.

A work session later in the week to discuss retail consulting is scheduled for Thursday May 26 at 5 PM.

The case involves a property taken to complete the Northwest connector portion that is between US-127 and Sparta Highway. Property owned by John Turner and his wife Wynell was taken by the city using eminent domain to complete the project. In such a case, the property is taken and the amount of compensation is determined later usually based on appraisals. Rarely does such a case go as far as the Turner case has gone.

Because the Turners sought more money for their property then the city was willing to pay based on appraisals, the case seemed headed to court. The judge in the case ordered the two sides to mediation in an attempt to settle the case. The mediation was held last week on May 19 and an agreement was reached.

The proposed settlement still must be approved by the city council and more details of the proposal will be presented by city attorney Will Ridley during the called meeting.

Council member Pete Souza has previously stated that he and John Turner are close friends and he will recuse himself from any decision on the matter.

The Crossville dragway has requested to be connected to the sewer at outside rates. At the regular council meeting earlier this month a motion to approve the connection failed over lack of being annexed into the city. Discussion at the meeting said that the business was concerned about the city noise ordinance and the noise generated by their races.

The matter will come back before the council during the special called meeting Monday.

The work session on retail consulting will involve presentation by three firms that provide services to help the city land new retail businesses. The three firms include R360, Retail Strategies and Buxton Company. The firms also consultant with the retail businesses helping them determine good locations for new locations. When consulting with municipalities, the firms help with gap analysis, retail market studies and business retention.

The goal of the consultation is to bring new business, tax base and sales tax to the local area.