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Council approves Industrial Development Board action for Grandiflora Foundation redevelopment on East Magnolia

5467822 · July 24, 2025
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Summary

The Industrial Development Board authorization for payments in lieu of taxes for the Grandiflora Foundation's Magnolia Avenue project passed; developer Phil Lawson described a multi-part reuse of historic buildings, performance and event spaces, community gardens and partnerships with nonprofits.

The City Council approved a resolution authorizing the Industrial Development Board to negotiate and accept payments in lieu of ad valorem taxes related to the Grandiflora Foundation's redevelopment of properties at 2439 East Magnolia Avenue and 2436 East Fifth Avenue.

Phil Lawson, the project's lead developer, described the plan in detail during the meeting. He said the restored Knoxville Baptist Tabernacle sanctuary will serve as a main event center with seating for roughly 350 on the ground floor and additional capacity in the balcony, and he described a smaller indoor piano-bar venue called Sweet Audrey's adjacent to the main hall. Lawson told council he expects a mix of free, low-cost and ticketed shows and said he aims to hold many community-oriented events.

Lawson also said the project will support a public garden, outdoor seating and courtyard space, and restored historic homes. He said one renovated house will be leased to Autism Breakthrough for $1 per year. On the Magnolia-side parcel he described about 110 parking spaces and sculptures planned for the public garden.

Council members welcomed the proposal as a major private investment in East Knoxville and pointed to the project as aligned with the recently adopted Magnolia redevelopment corridor goals. Multiple council members said the project addressed neighborhood concerns and preserved historic assets while adding programmed community spaces.

The council recorded the vote in favor and the resolution passed. The action allows the Industrial Development Board to proceed with PILOT negotiations and to find the payments in lieu of taxes "in furtherance of the public purposes" authorized under Tennessee Code Annotated —C 7-53-305, as described in the agenda language.

Lawson said he has lined up programming partners and plans a mix of cultural performances, weddings (including a stated goal to provide many no-cost weddings per year), and community events. He said the overall project budget and private investment are substantial and that he has been working on restoration and fundraising for some time.

Council members asked for and received clarifications about public benefits, including the publicly accessible garden and the project's potential to stimulate further investment in East Knoxville. No amendments or conditions were attached to the council's authorization at the vote.

Outcome: Resolution passed; Industrial Development Board authorized to negotiate PILOT payments and proceed with project approvals and agreements.