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In a significant move for local development, the Bristol, Tennessee City Council has given the green light to a project that promises to breathe new life into the former Volunteer Plaza. In a unanimous decision, the council approved an amendment to provide tax increment financing (TIF) for transforming the site into an ALDI grocery store.
This financial mechanism, TIF, allows the freezing of property taxes at their current level, with the expectation that the increased tax revenue generated by the redevelopment will be used to pay back the initial investment over time. Specifically, Godsey Leasing Company is seeking up to $500,000 in TIF for a period of 20 years.
The proposal was presented at a recent council meeting by Tom Anderson, the City of Bristol’s Director of Economic Development. Anderson highlighted the current state of the site, pointing out a new Weigels amidst a landscape of debris. “That’s one of the primary reasons for this TIF,” Anderson explained. “It’s aimed at facilitating the redevelopment of this underutilized area.”
Once the ALDI store is operational, the taxes will remain at the frozen rate, meaning the developer will eventually reimburse the city, making it a win-win situation for economic growth and urban revitalization.
Since taxes would be frozen, the developer would owe the city money after the ALDI is built.
“When you look at the total city taxes, it’s the $30,083.83, the base tax, which is the $6,668 will you’ll continue to get that, the debt service, which is the $761, you will get that,” Anderson said during the presentation. “The total amount that would go to the debt service is that $21,521.”
The City of Bristol, Tennessee’s mayor, Vince Turner, told News Channel 11 the unanimous vote was a no-brainer with an expected $13m in annual taxable sales.
“I believe it’s a no-brainer for the area. The fact of what the tax is going to bring in from the sales tax standpoint on this, and of just the redevelopment of that area,” Turner said.
Anderson added that the increment will be made up from the assessed property value increase.
“The 2.6 acres that they would be locating is $361,000. Once the building is constructed, you’re looking at the new assessed value of being $1.6 million. And that’s what is going to create the increment,” Anderson said.
The TIF application now goes to the Sullivan County Commission to be approved. They are expected to take it up at next week’s meeting.
If approved, ground is expected to be broken this summer, with the construction to be completed at some point by 2027.