City, county eye grant for spec building

Sep. 14—Businesses in Crossville often find few options when looking for buildings. That's a problem when trying to recruit new businesses, said Crossville-Cumberland County Chamber of Commerce President Ethan Hadley.

"We have virtually no existing space for a company to move in," Hadley said during Tuesday's Crossville City Council meeting. "And every project that is looking is pretty much looking for last week with very accelerated time schedules."

The council approved applying for a pilot grant program through the Tennessee Economic and Community Development's Rural Economic Opportunity Fund to build a spec building at the industrial park building pad in Interchange Business Park north of Interstate 40.

The grant is for up to $5 million with a 5% local match. The Cumberland County Budget Committee approved last week joining with the city to cover the $250,000 match.

Crossville Mayor R.J. Crawford said the state knows sites that have a structure are getting more attention from industrial prospects.

"With it being a certified site, we're going to get a lot of interest from the state agencies. They want the site to move," Crawford said.

"And the exciting thing is, the money we would get from selling that, we get to keep that money. That is something that could spin off multiple developments in perpetuity. That's huge."

The spec building will be a shell of a building. The state requires the structure to be at least 100,000 square feet, but it could be expanded up to 200,000 square feet, City Manager Greg Wood said. The height of the building will be based on averages in recent industrial development in the region, Hadley said.

"It's more likely to draw prospects than just a prepped site," Wood said.

That building pad has not found a buyer since completed in 2018. The 20-acre site includes a pad ready for construction of a building up to 200,000 square feet.

The council rejected an offer on the property in April 2022, noting the planned distribution center would bring about 20 new jobs to the community.

The council has sought a buyer who would create upwards of 100 new jobs at the site and pay 10% above the average wage in the community.

The building pad was a joint project of the city and county, with each contributing $250,000 for the project matched by a $500,000 state grant.

"In an ideal world, someone would come in and say, 'I love that flat pad. I love the location next to I-40. I've got tons of time and I'm going to put the building right there,'" Hadley said.

But that's not the situation for most industrial prospects, he said, especially with the continuing challenges to have construction equipment delivered and installed.

Hadley said the spec building grant is a pilot program.

"It's an opportunity to get a lot of bait to put on a great hook to attract more visitation [from industrial prospects]," Hadley said. "That allows you to respond to more projects and get more boots on the ground."

Bringing prospects to the community can often result in new industry, even if they ultimately do not choose the spec building site.

"They come and see your community and not like the building but decide they want to take a closer look," Hadley said.

The city and county will also be working together to provide additional help for veterans. The council approved the second reading of a budget amendment to provide $5,000 in additional support for the Cumberland County Veterans Service Office to allow the county to hire a part time veterans service officer and reduce waiting times for appointments.

In other business, the council approved the following items:

—third and final vote on year-end adjustments to the 2022-'23 budget, adding $118,500 to the budget's net position

—third and final reading of a budget amendment for the 2023-'24 budget required by the Tennessee Comptroller, adding $115,527 in contractual services

—$90,000 budget amendment for the purchase of a fuel tank for the public works department

—lease of the Catoosa Water Department office building at a cost of $1,650 per month, a $100 increase from the current lease

—contract for engineering services for screens on sewer lines at the Obed pump station and Justice Center with GRW Engineers Inc. The projects are being paid for by the American Rescue Plan Act funds, with $56,000 allocated for engineering services

—contract for a $15,000 maintenance grant for Crossville Memorial Airport

—amendment of grant contract for airport lighting rehabilitation project

—$34,141.83 for purchase of a Kubota tractor for Meadow Park Lake

—$79,607.57 for purchase of a fuel tank for the public works department

—renewal of the employee health insurance plan with an 8.43% increase

—$31,178.01 for purchase of new turbidimeters for the Meadow Park Water Treatment Plant

—retroactive approval for a $30,262.49 purchase of a pump for the old landfill sewer pump station purchased under emergency procedures

—change order to extend the time to complete replacement of the traffic signal at Lantana Rd. and Main St. to Aug. 22, 2024, due to delays in delivery of the new signal. The change order includes at deduction of $12,798 for changing street name signs to standard reflective signs in lieu of the proposed internally lit signs

Heather Mullinix is editor of the Crossville Chronicle. She covers schools and education in Cumberland County. She may be reached at hmullinix@crossville-chronicle.com.

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