With traditional funding sources less available, representatives from various commercial developments discussed with Lenoir City leaders the possibility of the city helping secure financing for the completion of roads and other projects.
 

A representative from the Tetra Company, Shawn Van Dyke, which is developing the Town Creek property between Highways 321 and 95, came before the board at a workshop Monday to find out if there was any interest on the part of the council to help Tetra find alternative means of financing for the connector road through the development.

Van Dyke said Town Creek’s road needs between $6 and 8 million financed for 10 years to finish. He asked if Tax Increment Financing or other programs would be available.

In Tax Increment Financing (TIF), developers make an agreement with the city where the developer continues to pay real estate taxes on the property’s value before the TIF is in place. Additional property tax money that comes in would go to pay back the funding for the infrastructure improvements.

“Banks just don’t exist for us in this current market,” Van Dyke said. “We’re still pushing forward and spending money.”

The council told Van Dyke they would consider a proposal if one was presented to them in terms of the TIF, or other programs from the state.

Mayor Matt Brookshire said the growth of the area puts a burden on the city and the taxpayers, so it is important the projects maintain a high quality, which they have.

 

The council heard a similar request from Mark Matlock, of MSM development, who is looking for TIF funding for infrastructure improvements, specifically in the area behind the Burger King on Hwy. 321. The council members also asked Matlock for a more detailed proposal before a decision would be made.

Lenoir City has helped secure infrastructure funds before, as in the case of their agreement with Ed Loy and the Creekwood development — which is continuing — because the road, like the one through Town Creek, is a connector.