OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

Knoxville City Council Workshop on Redevelopment and Public Finance Tools – May 21, 2026

City CouncilThursday, May 21, 2026
BodyKnoxville, Tennessee
SessionCity Council
DateThursday, May 21, 2026
StatusFILED
Video Record
0:00 / 1:15:29
Transcript — Verbatim
0:00

Good evening.

0:01

It is six o'clock, and I would like to call the this workshop to order.

0:08

Um, and we will begin um with uh councilman Grant leading us in the pledge.

0:14

Please stand as you are able.

0:22

And I'm basically individual, justice for all.

0:35

You please call roll.

0:43

Councilwoman Adams, Councilman DeBarde Laban.

0:46

Here.

0:47

Count Vice Migrant, if you go here.

0:49

Councilman Grant.

0:51

Here.

0:51

Councilwoman Hillsley.

0:53

Councilman Honeycub, Councilman Lloyd, Councilwoman Parker, Councilman Thomas.

1:04

Five of nine are in attendance.

1:07

So as we all know, as council members, we've expressed a great interest in what goes on with corridor redevelopment, pilots, tiffs, the process that we use that happens before things get to us.

1:28

So tonight I'm pleased that we have Rebecca Jane Justice and Ben Bentley who work on those things for the city of Knoxville here to talk to us and we will they have a presentation after the part about process.

1:44

We'll take open it up for questions, then they'll move on to a next session section.

1:49

So we'll kind of stop in the middle so we don't have to remember all our questions till the very end.

1:54

And at the end of their presentation, then we will open it up for discussion and other questions we have about development along the corridors, barriers, things that we think might be interested to do, and just let this be a conversation as we all work to make things better in Knoxville.

2:12

So I think we have the presentation up, and so uh Miss Justice, are you starting us?

2:20

Yes.

2:20

All right.

2:21

Are we ready?

2:21

Start.

2:22

Yes.

2:22

I don't know if you wanted me to sing the national anthem next.

2:25

No, ma'am, we don't do that.

2:27

That sounds good.

2:28

It's better for all concerned.

2:30

Well, we appreciate you all inviting us tonight to talk about redevelopment and public finance tools.

2:38

Uh we talk a lot about this, specifically over the last few years where we've had so much growth and interest and investment in Knoxville, so how we can be strategic and collaborative in creative ways.

2:53

It's great to talk about not only what is possible but what the process is.

2:58

Um over the course of the next few moments.

3:04

Uh we have organized our information into just talking about why economic development incentives are important, where they're appropriate and focused.

3:15

We'll share with you an overview of the process and not only talk about the process but show you where we direct people to find out about the process and what resources are available on our city web pages.

3:31

And then we'll dive into what tools are available as public-private partnerships, what's in our toolbox, and then we'll move on to show you some case studies and talk about a little more specifically how those tools have come to life in a few specific projects and just talk about the mechanics of a few projects for some case studies, and then we'll wrap up by sharing how these projects have delivered and what the benefits and the investment opportunity has brought to Knoxville with these partnerships.

4:10

So I'm gonna jump back and forth between the slides and the the web because I think that it's important to show you all how we direct people to these resources.

4:23

So this is the urban design and development city web page, and I know we're about to change all of our web resources, but um that this information will still be there.

4:34

Um so if you jump to a live web page, um you're right here, and you have you can easily get there by typing urban design in the search for anything box.

4:48

And up at the top, we've got public-private partnership opportunities, which will share with you those tools and resources, and gets really detailed into the key development priorities and all the exhibits and forms, but also we share our viewer, which I'll go through in just a minute too.

5:09

So what's really important to us when we have initial conversations with folks on our process is really just an initial conversation, getting to know the investment and development team, but also allowing that team to get to know Knoxville and what's important.

5:26

So it's almost like a business development opportunity to really understand what everyone has as their priorities as they bring an investment to Knoxville.

5:38

So in the about five years ago, we created what we refer to as the key development priorities, and you all have heard us bring these to the table specifically in projects that come to council for approval for public private partnerships, and they highlight different categories about project type, project location, project characteristics, how the projects integrate with public amenities and transportation.

6:06

So those key development priorities have become really important to those conversations that we have with developers, and I might have to flip through each slide deck to get back, but we can do that.

6:22

So just a few highlights out of each of these categories.

6:26

We absolutely emphasize that the expansion of our housing supply is important when people are investing in residential projects.

6:36

We always ask that they consider incorporating 10 to 20% workforce housing into their multifamily projects.

7:04

Also along primary transit corridors and areas that are served by our Knox Area Transit System CAT.

7:12

So we also really place a great emphasis on historic preservation and adaptive reuse, really encouraging people also to explore architecturally distinctive and innovative design tactics and incorporating environmentally friendly and sustainable engineering characteristics like lead certifications, etc.

7:33

So we talk really big picture, but we also talk into the details when we're guiding people to share with them what's important to Knoxville as we grow.

7:56

So this really is an opportunity for us to say, um, what do all those key development priorities really mean when you start to look at a map of Knoxville?

8:09

Because whether you're from this area or not from this area, it is really great to start to say, I'm gonna flip a few of these on as I talk about how this map works.

8:21

So when we say an area of focus is a redevelopment area, we have digitized those redevelopment areas.

8:30

You can zoom in and out to see exactly what parcels are included in these redevelopment areas.

8:36

We also show where our existing and past public-private partnerships have been, and each of those will link to some context about each of those projects, and again, I mentioned aligning projects along transit routes.

8:52

So you can see all of these layers start popping into place.

8:56

There's all our transit routes in green, and again, city investments and infrastructure, so existing sidewalks are there in purple.

9:05

So you can really start to see how this is a visual interpretation of the key development priorities that were listed on the previous slide.

9:15

I'm gonna turn it over to Ben now.

9:18

So after we have that initial conversation with people, get to know them, we introduce some of our resources and priorities, we start to talk about process.

Discussion Breakdown — Share of Meeting
Economic Development█████████████████████████████████████████████83%
Community Engagement███5%
Affordable Housing███5%
Procedural███5%
Engineering And Infrastructure2%
Summary of Proceedings

Knoxville City Council Workshop on Redevelopment and Public Finance Tools – May 21, 2026

The Knoxville City Council held a workshop on May 21, 2026, at 6:00 p.m. to discuss redevelopment incentives, the application process, and public-private partnership tools. The workshop featured a presentation by Rebecca Jane Justice (Urban Design and Development) and Ben Bentley (KCDC), who outlined the city's key development priorities, the step-by-step process for evaluating projects, and a toolbox of financial mechanisms including Tax Increment Financing (TIF), Payment in Lieu of Taxes (PILOT), low-income housing tax credit (LITECH) projects, development agreements, capital improvement investments, and a historic/facade program. Council members asked questions about early engagement, the evaluation of financial feasibility, and the establishment of redevelopment areas. No votes were taken; the workshop was informational.

Discussion Items

  • Presentation on Process and Tools: RJ and Ben explained that the city's process begins with an initial conversation, followed by submission of an exhibit A (preliminary application), an interdisciplinary city review (step 1B), a preliminary financial review by KCDC (step 2), and a third-party financial review (step 3). The entire process typically takes about six months. They emphasized that the city uses a "but for" test to determine whether a project would not occur without incentives.
  • Key Development Priorities: The presenters highlighted priorities such as expanding housing supply, incorporating 10–20% workforce housing in multifamily projects, focusing on transit corridors and redevelopment areas, and encouraging historic preservation and sustainable design. A digitized map showing redevelopment areas, past partnerships, and transit routes was demonstrated.
  • Councilman Grant's Request for Early Engagement: Councilman Grant expressed a desire to be involved in the initial city review (step 1B) for projects in his district, arguing that council members can provide on-the-ground feedback and help with public engagement. He noted that early involvement could save developers pain later. Staff acknowledged the request and suggested that developers could be encouraged to reach out to district representatives early.
  • Councilwoman Adams' Question on History of Council Engagement: Councilwoman Adams asked whether staff had historically engaged council members early in the process. RJ replied that they typically help developers connect with council when public processes like rezoning are involved, but not earlier.
  • Councilman Thomas' Question on Developer Need for Incentives: Councilman Thomas asked whether private developers typically come to the city saying they cannot do a project without a PILOT or TIF. Ben confirmed yes, and explained that the financial review (steps 2 and 3) is designed to verify that the project truly needs the incentive.
  • Councilman Thomas' Question on Third-Party Review: He asked how often the third-party review finds issues. Ben responded that it almost always leads to push-and-pull on assumptions, which has become more accepted by developers over time.
  • Discussion on Redevelopment Areas: Ben explained how new redevelopment areas are established: a council resolution, notification of property owners, three weeks of public notices, a public hearing, and then approval by city council, county commission, and KCDC board. Council members expressed interest in creating redevelopment areas on corridors like Broadway. Councilman Thomas said he would first talk to KCDC before drafting a resolution.
  • Number of Redevelopment Areas: Councilwoman Parker asked how many redevelopment areas exist. Ben estimated about twelve broader areas, noting that some are very old and less active. He added that redevelopment areas do not sunset because the need for tools can fluctuate with the economy (citing South Waterfront as an example).
  • Duration of PILOTs: Councilman Grant asked how the number of years for a PILOT or TIF is determined. Ben explained that the city has been ratcheting back durations over the past five years. The financial model uses a 10-year internal rate of return (IRR) assumption, and the duration is set to achieve a 12–20% IRR. Councilman Thomas noted that durations have shortened from 30 years to as low as 10 years, reflecting stricter analysis.
  • Workforce Housing Requirement: Councilman Grant asked about the 10–20% workforce housing requirement. RJ said it is a negotiation point in initial conversations, and the workforce units are tied to the life of the PILOT, with a graduated rent increase at expiration to avoid sudden spikes.
  • Case Studies: Presenters highlighted several projects:
    • 200 Block of Gay Street: $30M investment, $3.7M TIF, 53 condo units with workforce housing, 20,000 sq ft retail – first new construction on Gay Street in 40 years.
    • Cumberland Avenue Streetscapes: $25M city investment leveraged ~$1B in private development; a student housing project (The Hub) received a 5-year PILOT only for structured parking (2,000 spaces) because student housing itself is not incentivized.
    • Grosvenor Square: LITECH PILOT for 184 mixed-income units, with 27 acres of hilltop donated to Legacy Parks for preservation.
    • Façade and Historic Program: Examples on Broadway and North Central Street showing before/after improvements.
  • Overall Impact: Since 2020, public-private partnerships have inspired over $2 billion in private investment, created/preserved over 8,000 housing units (5,000 affordable), and generated $5 million in new property tax revenue over the next five years. Most incentives require no direct capital investment from the city.
  • Councilman Thomas' Comments on Corridors: He noted that while Recode and rezoning to mixed-use removed a major obstacle, not much development is happening yet. He emphasized the need for proactive city engagement, especially for housing along corridors.

Key Outcomes

  • No formal votes or decisions were taken; the workshop was informational.
  • Council members indicated interest in being more involved early in the incentive process, with Councilman Grant requesting to be part of step 1B. Staff agreed to encourage developers to contact district representatives.
  • Councilman Thomas and others signaled a potential future request to establish a redevelopment area on Broadway, following preliminary discussions with KCDC.
  • The city's redevelopment tools and process were affirmed as effective, with statistics showing significant leveraged investment and housing creation.
  • The workshop concluded with Vice Mayor Fugit thanking the presenters and noting the value of the detailed overview.

Meeting Transcript

Good evening. It is six o'clock, and I would like to call the this workshop to order. Um, and we will begin um with uh councilman Grant leading us in the pledge. Please stand as you are able. And I'm basically individual, justice for all. You please call roll. Councilwoman Adams, Councilman DeBarde Laban. Here. Count Vice Migrant, if you go here. Councilman Grant. Here. Councilwoman Hillsley. Councilman Honeycub, Councilman Lloyd, Councilwoman Parker, Councilman Thomas. Five of nine are in attendance. So as we all know, as council members, we've expressed a great interest in what goes on with corridor redevelopment, pilots, tiffs, the process that we use that happens before things get to us. So tonight I'm pleased that we have Rebecca Jane Justice and Ben Bentley who work on those things for the city of Knoxville here to talk to us and we will they have a presentation after the part about process. We'll take open it up for questions, then they'll move on to a next session section. So we'll kind of stop in the middle so we don't have to remember all our questions till the very end. And at the end of their presentation, then we will open it up for discussion and other questions we have about development along the corridors, barriers, things that we think might be interested to do, and just let this be a conversation as we all work to make things better in Knoxville. So I think we have the presentation up, and so uh Miss Justice, are you starting us? Yes. All right. Are we ready? Start. Yes. I don't know if you wanted me to sing the national anthem next. No, ma'am, we don't do that. That sounds good. It's better for all concerned. Well, we appreciate you all inviting us tonight to talk about redevelopment and public finance tools. Uh we talk a lot about this, specifically over the last few years where we've had so much growth and interest and investment in Knoxville, so how we can be strategic and collaborative in creative ways. It's great to talk about not only what is possible but what the process is. Um over the course of the next few moments. Uh we have organized our information into just talking about why economic development incentives are important, where they're appropriate and focused. We'll share with you an overview of the process and not only talk about the process but show you where we direct people to find out about the process and what resources are available on our city web pages. And then we'll dive into what tools are available as public-private partnerships, what's in our toolbox, and then we'll move on to show you some case studies and talk about a little more specifically how those tools have come to life in a few specific projects and just talk about the mechanics of a few projects for some case studies, and then we'll wrap up by sharing how these projects have delivered and what the benefits and the investment opportunity has brought to Knoxville with these partnerships. So I'm gonna jump back and forth between the slides and the the web because I think that it's important to show you all how we direct people to these resources. So this is the urban design and development city web page, and I know we're about to change all of our web resources, but um that this information will still be there. Um so if you jump to a live web page, um you're right here, and you have you can easily get there by typing urban design in the search for anything box. And up at the top, we've got public-private partnership opportunities, which will share with you those tools and resources, and gets really detailed into the key development priorities and all the exhibits and forms, but also we share our viewer, which I'll go through in just a minute too. So what's really important to us when we have initial conversations with folks on our process is really just an initial conversation, getting to know the investment and development team, but also allowing that team to get to know Knoxville and what's important. So it's almost like a business development opportunity to really understand what everyone has as their priorities as they bring an investment to Knoxville. So in the about five years ago, we created what we refer to as the key development priorities, and you all have heard us bring these to the table specifically in projects that come to council for approval for public private partnerships, and they highlight different categories about project type, project location, project characteristics, how the projects integrate with public amenities and transportation. So those key development priorities have become really important to those conversations that we have with developers, and I might have to flip through each slide deck to get back, but we can do that. So just a few highlights out of each of these categories. We absolutely emphasize that the expansion of our housing supply is important when people are investing in residential projects. We always ask that they consider incorporating 10 to 20% workforce housing into their multifamily projects. Also along primary transit corridors and areas that are served by our Knox Area Transit System CAT. So we also really place a great emphasis on historic preservation and adaptive reuse, really encouraging people also to explore architecturally distinctive and innovative design tactics and incorporating environmentally friendly and sustainable engineering characteristics like lead certifications, etc. So we talk really big picture, but we also talk into the details when we're guiding people to share with them what's important to Knoxville as we grow.

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