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City outlines $2M land sale and mixed-use Wilson Street plan; developer seeks nonbinding MOU
Summary
City staff outlined a requested nonbinding MOU for the Wilson Street project: a $2 million land-bank sale in three tranches, phased mixed-use development (housing, food hall, research/housing tie to UT Battelle), relocation of utilities, use of a $500,000 Coffey family fund for a park, and conservative private investment estimates of at least $60 million.
City staff briefed the Oak Ridge City Council on a proposed nonbinding memorandum of understanding (MOU) for the Wilson Street project, a multi-phased mixed-use development the developer presented to the city.
The MOU the developer requested would document general terms (nonbinding) around development phases, utilities relocation, parking, public-park elements and proposed city contributions. Staff said the land sale to the developer would total $2,000,000 to the land bank, delivered in three tranches tied to project phases.
Staff described the three phases: phase 1 is Building B (approximately 98,000 sq ft) with PhD/intern housing and an agreement tied to UT Battelle; the design also includes a food-truck plaza and surface parking. Phase 2 is additional housing (about 119,000 sq ft) on a podium with parking below, and phase 3 would include a food hall, apartments and a parking deck (about 277,000 gross sq ft). The developer has asked the city to consider leasing roughly 40 spaces in the parking deck so there is public parking for the park component; staff said $500,000 from the Coffey family is being held for the park and would need to be included in the MOU with the family's agreement.
Staff noted major infrastructure items (relocating a 54-inch storm drain, electrical ties and other utility work) will affect costs and phasing and that a temporary surface lot would be used early in the project. Staff presented conservative estimates of at least $60 million in private investment associated with the full project and estimated annual tax revenue at about $340,000. The MOU is nonbinding and intended to help the developer demonstrate commitments to investors while city staff continue to finalize detailed agreements and funding models.
Staff asked the council to authorize continued work on the MOU and to bring a final version forward for approval after further negotiation of terms and cost estimates.
