Coffee County approves tax‑increment financing to back Summerlin development with Tullahoma

The Coffee County Commission unanimously approved an economic impact plan and related tax‑increment financing (TIF) arrangement for the Summerlin mixed‑use development, voting 18‑0 to authorize the county's participation.

Winston Brooks, director of the Tullahoma Area Economic Development Corporation, told the commission the plan projects approximately $12.4 million in new tax revenue to the county over the life of the TIF and an estimated $1.5 million in annual property tax revenue to the county once the agreement ends and the property is fully on the tax rolls. Brooks said the county's reimbursement to the developer is capped at $18.4 million and that the agreement is structured to reimburse developer costs for public infrastructure such as streets, sewers and sidewalks; the developer must provide receipts before any payment is made.

Brooks and city and county representatives described the project as a roughly 996‑unit residential and commercial community at the north end of Tullahoma on Highway 41, intended to add housing and retail capacity adjacent to existing four‑lane highway infrastructure. The economic impact plan included a local procurement commitment: the developer agreed to purchase at least 40% of construction materials locally.

City of Tullahoma officials said the project is intended to support regional job growth — including an expansion at Arnold Air Force Base — and to reduce long commutes for local workers. The Tullahoma Economic Development Corporation and Tullahoma Board of Mayor and Aldermen had already approved the plan; the county's unanimous vote finalized the county's participation.

Commissioner discussion focused on the dollars and timing. Brooks said the developer expected to begin site work later in the year and that statutory time limits require the TIF district to begin within eight years of approval. County legal counsel and outside economic development attorneys reviewed the agreement; Commissioner Jones confirmed with the county attorney that the draft conforms to required TIF procedures.

The commission voted to approve the economic impact plan upon a motion by Commissioner Duncan and a second by Commissioner Seaborn. The project will proceed to detailed engineering, permitting and development agreements, and any infrastructure paid through the TIF will be dedicated to the city after construction.

Because tax increment financing captures revenue above a frozen baseline, the county will retain baseline property and sales tax revenue throughout the deal; the shared increment will be used to reimburse developer infrastructure costs under the terms of the TIF agreement.