It Gets Worse

A few weeks ago, I reported on how Lenoir City officials have now started handing out huge, long term tax breaks to developers building low to moderate income apartments, PILOTS. While that's bad enough, Lenoir City officials have taken developer favors to a whole new level.

Last year, Lenoir City council voted to pay one developer for all the infrastructure in their development when completed. The development is called, West Point Place.  

The city has entered into an agreement with Belle Investment Company to pay them for all the infrastructure/public facilities, which could include, streets, sidewalks, utilities, including electrical, gas, water and wastewater improvements, related improvements, parking facilities, parks and greenways and any improvements for public safety, including police and fire stations. The costs will be in the multi millions.

The city is obligated to pay the developer for all the infrastructure/public facilities when the development is completed. The city would borrow the money to pay the developer, then all the property owners in the development would be required to pay a property tax that is more than double the current tax rate of the rest of city property owners to repay the borrowed money over many years. It's called Special Assessment Financing. The developer plans to construct 270 low to moderate income apartments and 221 single family home lots.

I was told this is the first one of these Special Assessment Financing deals in the state. Doubtful that many other government officials would obligate their tax payers to such a crazy plan. Great deal for the developer, bad deal for the tax payers. 

Aside from the Special Assessment Financing deal, Belle Investment Company has been granted two PILOTS.

Project, City View
 
Developer, Belle Investment Co. Inc., Current Property Owner, Tony Aikens. No specific Number of units given.
The PILOT is for a ten year tax break beginning upon completion of the project.
Property Tax Obligation for ten years $61,010.00 per year.
The project is on West Simpson Road behind Taco Bell.
Project, West Point Place
 
Developer/Owner, Belle Investment Co. Inc. 270 Apartments and 221 single family lots are planned on the 124 acres.
The PILOT is for a twenty year tax break beginning upon completion of the project.
Property Tax Obligation for twenty years $124,464.00 per year.
The project is on what was known as the Ross property on Hwy 321 just past Interstate Battery.


West Point Place Plat

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3/22/21