KNOXVILLE, Tenn. (WATE) — A proposal has been introduced to help offset the rising cost of the Knoxville stadium project due to inflation.
The new proposal would expand the Tax Increment Financing district to Harriet Tubman Street and Winona Street which is several blocks more than originally planned. On the other side of the stadium, the proposal also calls for expanding to East 5th Avenue and Summit Hill Drive.
A tax district like the one in mind for the Knoxville stadium uses new tax revenue created by new investment and development to help pay for public infrastructure and other improvements within the district.
“Any new revenue that’s generated from this area, so that’ll be new property tax revenue because of new private investment, and this new property tax revenue is then just as Mr. Caldwell was saying is invested back into private infrastructure and public amenities in that community,” said Stephanie Welch, Deputy to the Mayor and Chief Economic Development Officer.
“This development is important for the continued progress of our community, especially in the all-important 25- to 54-year-old demographic. We continue to lag behind our peers in retaining and attracting this age demographic, and we believe civic furniture like this will give young families more things to do, adding vibrancy to our community.”
As the stadium project continues to push forward, Knoxville Mayor Indya Kincannon is saying “the public benefits of this stadium must outweigh the costs, and we’re assuring that that’s in fact what’s happening.”
Knox County Mayor Glenn Jacobs says the stadium and related private development will help build vibrancy in the county.
“Inflation and skyrocketing construction costs have forced us to look into other options,” Jacobs said. “One way is to expand the TIF district, which will fund the stadium with revenue that would not otherwise be generated.
Votes and a public hearing are each scheduled to happen later in July.
In addition, Randy Boyd will pay more money for the stadium project up-front. However, the city says he won’t be increasing his original $46-million commitment.