Benefits to the Community - A Positive Economic Impact
University Commons is uniquely positioned to bring an important bundle of benefits to the southwest Knoxville area: much-needed grocery and retail shopping for students, local employees and residents; hundreds of new construction and retail jobs; and the welcome environmental remediation of a long-neglected site.
The estimated total economic impact to the area is expected to be $226 million, a boon to the community and a strong foundation for future economic growth and stability.
The Need for a
New Market Tax Credit
University Commons will revitalize and convert a blighted brownfield site, turning it into a productive retail destination that will have a positive economic impact on the community for decades to come.
Given the complexity of the project and the significant costs required to transform the property into a retail center, New Market Tax Credits (NMTC) are needed to make this project a reality. to fill funding gaps in order to make this project a reality. Without the NMTC to fill the funding gaps, obstacles will make it difficult to get the necessary financing.
Conventional lending for new construction is very challenging in today’s economic climate, even for projects secured with long-term leases, like University Commons. The complex nature of this particular project will most certainly require a significant equity contribution and less leverage by a construction lender. The NMTC will help bridge the equity requirement needed to proceed with the project and make it a viable investment.
• New Market Tax Credits
• The City of Knoxville
• TIF – Property taxes