Monday, April 25, 2016

Knox Commission to talk tax breaks

The Knox County Commission on Monday will decide whether to sign off on tax breaks for two major downtown developments – one that will create 100 condominiums and the other that will call for almost 150 apartments.

At issue is whether to grant a PILOT for the second phase of the Marble Alley project on State Street to help build an underground parking garage inside the apartment complex.

Under the proposal, the developers would make $51,450 payments a year for a decade instead of paying the full amount of property taxes during that time. The move saves developers money since they’re not paying additional taxes on the improvements they make to the property during construction.

The commission also will talk about whether to approve a $5 million "tax increment financing" package for the Jackson/Depot development near the Regas building.

Under the proposed plan, condo developers would pay $45,745 to the county and $69,700 to the city in taxes each year for up to 20 years. Afterward, the county would get $223,000 a year and the city would receive $262,000.

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