land for development
residential uses, with the goal of attaining the highest and best economic use of properties
within designated Redevelopment Districts. The primary goal is promotion of public good and
enhancement of the economic base.
The Redevelopment Plan for Core Urban Areas City of Kingsport was adopted by the governing
bodies in Jan. 2002 and has been amended several times. The main components of the Plan
include:
1. Administrative Policies regarding how the Plan works
2. Designation of the Redevelopment Districts and Amendments
3. Designation of Original Study Areas
4. Retail Market Report by Economic Research Associates
Redevelopment seeks the “Highest and Best Use” of a property that will lead to expanded
economic activity. The initial focus of the Redevelopment Plan is on Retail Development since
sales tax revenue comprises a large portion of the General Fund Budget of the City of
Kingsport. Some of the defined objectives in the Plan include:
• Elimination of Blighted Areas
• Expansion of Sales Tax Revenue
• Expansion of the Property Tax Base
• Creation of jobs
• Promotion of a richer cultural environment
• Promotion of Quality of Life
• Improvement of the transportation infrastructure
In order for a Redevelopment District to be created, it must be approved by three governing
bodies: the Board of Commissioners of the Kingsport Housing & Redevelopment Authority, the
Board of Mayor & Aldermen for the City of Kingsport, and the Board of Commissioners for
Sullivan County (in the event County TIF is requested). In addition, the Kingsport Planning
Commission reviews the proposed district. In order for an area to be designated as a
Redevelopment District, it must meet the legal definition of “slum and blight” as contained in
the Statute T.C.A. 13-20-201. The tools that could be used in a Redevelopment District include:
- Tax Increment Financing (TIF): TIF is the redirection of increased property tax revenues
which occur as the result of a redevelopment project, in support of the project. It is a means
of providing funding to spur redevelopment activities. TIF must be approved by the governing
bodies involved.
- Ability to Assemble Property: The KHRA is able to acquire property either through outright
purchase, or through the exercise of eminent domain, which is defined as the taking of
private property for the public good, with just compensation and assistance with relocation.
- Bonding Authority: The KHRA authorized by T.C.A. 13-20-104(a)22 has the capability to
borrow funds through its bonding authority in support of projects with a public purpose, with
public ownership. This may be at a lower, tax-exempt, interest rate.
