KINGSPORT — A new payment in lieu of taxes agreement has been approved by the Kingsport Board of Mayor and Aldermen with the owners of Fort Henry Mall as improvements on the property begin.
The Kingsport BMA voted 7-0 on Tuesday night during its regularly scheduled business meeting to amend Hull Property Group’s former PILOT agreement.
“This amendment is necessary to facilitate continued economic development and to reflect the current property boundaries as a result of the sale of the former J.C. Penney building,†the resolution stated.
The Kingsport Economic Development Board approved the amended PILOT agreement two weeks ago. The new agreement states that Hull Property Group, owners of Fort Henry Mall, will pay $50,000 in city taxes for the next 15 years.
The resolution states the agreement could be amended in the future as further development occurs.
Over the last several months, the Fort Henry Mall has attracted Rural King to buy and redevelop the former J.C. Penney’s building.
Two months ago, the city, along with Hull Property Group, announced that a new IMAX theater would be coming to the mall, along with development of an outparcel that would include an Eggs Up Grill, a Butcher Shoppe and a third to-be-determined business.
The city approved an incentives package two weeks ago that will provide almost $2.8 million in incentives.
About $500,000 would be used to provide new sewer in Fort Henry Drive to help with the outparcel development. The other $2.3 million will help in the development of Rural King, the new IMAX theater and upgrading the existing NCG Cinemas.
The city has said with the development in the area, it expects more than $25 million annually in sales at the Rural King and theaters.
