Johnson City adopts Brush Creek economic impact plan, authorizes TIF to fund public infrastructure for mixed‑use project
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Summary
The commission approved an economic impact plan authorizing a project TIF for the Brush Creek/Rollington Mills redevelopment — a phased, $240 million mixed‑use redevelopment that would restore Brush Creek, add housing and retail, and use tax increment financing capped at roughly $21.7 million for public infrastructure.
The Johnson City Commission on May 15 approved an economic impact plan (EIP) for the Brush Creek / Rollington Mills redevelopment and authorized city officials to implement the project TIF structure negotiated with the Industrial Development Board (IDB). The IDB approved the plan on May 14, and the city action sends the project forward toward county consideration.
Economic development staff described the proposal as a roughly $240 million, phased mixed‑use redevelopment of a former mill area that would reopen and restore portions of Brush Creek, add public green space, and construct hundreds of housing units and about 100,000 square feet of commercial space over six development phases across about eight years. The developer and staff represented the project as an opportunity for infill housing and retail, traffic and stormwater improvements on West Walnut, and expanded recreational connections including the Tweetsie Trail.
The EIP authorizes a project tax increment financing (TIF) program in which incremental property‑tax revenues generated by new development in the TIF area are pledged to the IDB to repay public‑infrastructure financing. Staff presented a term sheet that caps the maximum TIF at $21,700,000 plus interest and limits TIF uses to public infrastructure improvements (stormwater detention, road and bridge improvements, park construction, demolition and public parking associated with the development). The IDB will levy a fee equal to 2.5% of incremental tax receipts for administration and debt service funding. City staff emphasized that base tax revenue on the properties will continue to flow to normal taxing entities; only new incremental revenue will be captured for the TIF.
Staff estimated the project would support roughly 730 jobs (including construction jobs during build‑out), generate an estimated $1.3 million in direct annual sales tax and an additional $1.4 million in indirect sales and property tax annually, and add substantial private investment to a blighted industrial corridor. Project proponents said Phase 1 work would also address existing traffic and stormwater constraints at Walnut and West Walnut and replace culverted sections of Brush Creek with daylighted stream and green infrastructure.
Commissioners asked questions about the timing and scope of phases, the public infrastructure to be funded by the TIF, and whether school taxes or other taxing bodies would be affected; staff and legal counsel explained TIF proceeds are limited to the public‑infrastructure categories in the term sheet and that the current structure uses only incremental revenues. The commission adopted the economic impact plan and authorized city officials to implement the plan; staff will coordinate with Washington County and the IDB on the next steps in financing and project development.
The TIF structure requires the developer to arrange financing; the local IDB or city is borrower for TIF debt and repayment is limited to the incremental revenues generated in the district. Staff recommended approval; the commission voted to adopt the economic impact plan and forward the project to county review.
