Resolution authorizes Economic Impact Plan for Centennial Park PUD

By Bill Short
The Millington Board of Mayor and Aldermen has unanimously approved an Economic Impact Plan for the proposed Planned Unit Development project northeast of Centennial Park.
Board members took the action during their Aug. 9 regular monthly meeting on a motion offered by Alderman Jon Crisp and seconded by Alderman Don Lowry.
A resolution approving the EIP states that the Millington Industrial Development Board prepared the plan regarding development of 76.26 acres, including a 35-acre park and 40 acres previously used for U.S. Navy housing.
The project is proposed to consist of an “upscale, walkable/bikeable master planned community” of residential, retail, office and hotel uses. It is expected to include:
(1) a 95-room hotel
(2) approximately 63,000 square feet of commercial and office space
(3) 116 “live-work” residential lofts
(4) two single-acre commercial outparcels
(5) 280 single-family attached townhouses
(6) a 48-unit multi-family apartment building
(7) approximately 729 structured parking spaces
The resolution states that, pursuant to Chapter 53, Title 7 of the Tennessee Code Annotated, the EIP will permit certain Tax Increment Financing to be provided through the IDB’s issuance of bonds, notes and other obligations in an amount not to exceed $10,343,985.
At its Aug. 2 meeting, the IDB approved the EIP and voted to submit it to the board for approval.
The resolution states that the proceeds of the TIF will be used to pay the costs of eligible public improvements related to the project development.
Under the EIP, the incremental property tax revenues that result from the development will be allocated to the IDB to pay debt service of the TIF.
The IDB will issue the TIF to a lender or lenders to finance the TIF eligible costs. And it will pledge the TIF revenues to the lender(s) to apply to the debt service on the TIF.
The resolution states that the TIF will not “represent or constitute” a debt or pledge of the “faith and credit” or the taxing power of the IDB, the city or Shelby County.
During discussion shortly before the vote, then-City Finance Director John Trusty said the board’s approval of the EIP was required, and then it would be submitted to the County Commission.
“This project will still provide all the funds required by the tax rate on the incremental increased tax for our debt service,” he noted.
Trusty said the portion of the tax rate that the city has allocated for the debt service on the existing city debt continues to “pay down” on the new appraisal as well as the old appraisal.