Miller & Martin Client Black Creek Mountain Receives City Approval for Project to Commence Immediately
Developers of Black Creek Mountain received approval today from the Chattanooga City Council to move forward with the city's first ever TIF (Tax Increment Financing) project. TIF funding uses an increase in tax revenue to pay for projects that benefit the public. MBSC Black Creek, LLC developers will front the $9 million for a 1.5 mile mountain road that will connect the valley to the mountaintop community. They will pay themselves back over 13 years, using subsequent tax revenues over and above the taxes currently being paid. Additionally, county schools will continue to receive the full amount of tax income dedicated for that purpose.
The project received initial approval from the Industrial Development Board and later from the Hamilton County Commission. Both bodies approved the project by unanimous vote. TIF funds are used across the state of Tennessee with Knoxville using them the most, having over twenty projects currently underway using the funds.
"This is the beginning of a 20 year plan for this special place," said Gary Chazen, one of the developers. "We have over 3,000 acres involved in this project; however, we will only develop 1,500 over the life of the project. The rest of the land will be conveyed to either the Tennessee River Gorge Trust in partnership with the Trust for Public Land. We believe this is the highest and best use for the property."
Chazen noted that the $500 million project would be approximately the same size as the town of Lookout Mountain, TN. The project will provide a Village Center which is currently under construction, as well as a restaurant and banquet facility; office park; town center with retail; corporate retreat and training center; high end assisted living; public recreation facilities; community and business support facilities; and, commercial spaces along with approximately 1500 homes built over the life of the project.
Developer Doug Stein said, "This is the most carefully comprehensively planned project East Tennessee has ever seen. Great care has been taken to preserve natural resources and build in an environmentally responsible conscious manner."
The property was annexed by the City of Chattanooga in 2010. Since that time, Michael C. Mallen, Alfred Smith and Mark Smith of Miller & Martin have been working on obtaining the TIF funding for the project. They received approvals for the TIF funding plan first from the Industrial Development Board and later by the Hamilton County Commission. Today's vote from the Chattanooga City Council concludes the approval process allowing the project to move forward.
Attorney Michael C. Mallen of Miller & Martin noted, "Had the City Industrial Development Board, Hamilton County Commission and Chattanooga City Council not approved the TIF, the project would have taken much longer to launch. Their approval not only allows a construction project to move forward, but also accelerates job growth and significant additional tax revenues for the city and the county."
"This is an exciting time in Hamilton County," said Chazen. "We have the ability to create a community that will make a difference for generations to come. It's a responsibility we take extremely seriously."
He noted that regular updates will be provided to the public throughout the various phases of the project.
For more information about the project, visit: www.BlackCreekMtn.com.