Movie theater TIF is paid off

regalriviera.jpgThe last payment has been made on a tax-increment financing incentive that supported Knoxville's downtown movie theater, a positive sign for a project that was viewed by some as a risky bet.

An official with the Development Corporation of Knox County said the last payment on the $1 million TIF was made last week. Under a TIF, developers borrow private money to pay for infrastructure and other improvements, but use part of the new property tax revenue from the project or from other nearby properties to pay down those debts.

The TIF for the Regal Riviera Stadium 8, on Gay Street, was structured in such a way that new property tax revenue from dozens of downtown properties -- including Riverview Tower and First Tennessee Plaza -- was used to pay off the borrowed money.

Bill Lyons, senior director of policy and communications for the city, said that "by any expectation it paid off more quickly than we thought it would."

"The cinema is obviously a success, and downtown's property values are holding steady or growing even more quickly than would have (been) anticipated," Lyons said. "It's definitely a plus for downtown, and also a plus for the idea that the cinema is an economic driver."

KNS photo/Saul Young


Post a comment

Remember personal info?


About this blog