Area Development Foundation President Sam Filkins addressed the Knox County Board of Commissioners during its November 13 meeting, detailing how a tax abatement by the City of Mount Vernon will save the developer of Founders Grove $2 million.
According to a video of the commissioners' meeting, Filkins explained that the City of Mount Vernon negotiated a Community Reinvestment Area (CRA) tax abatement for the multi-family development. Although the board of commissioners and the school board must be informed about CRA abatements, their approval is not required.
Filkins said that the Founders Grove development is located just north of the Rockford Apartments on Upper Gilchrist, behind the Knox Health Department. He noted that it will feature 156 units targeted at a specific age group but not restricted to them.
"It will not create, ideally, a lot of children for the schools. So they won't be getting a large influx of those," Filkins said.
When discussing financial aspects, Filkins mentioned that initially, the project would have received a 100% abatement, excluding emergency levies, for 15 years. However, through negotiations conducted by his predecessor and himself since taking over as head of the Area Development Foundation, they managed to reduce this to a 50% abatement for 10 years. He emphasized that tax abatements are granted sparingly and only when they make a significant difference in project feasibility. The site will see an investment exceeding $40 million, with the abatement saving $2 million. The Mount Vernon School District is set to receive $148,457 annually for the first decade; post-abatement, its tax revenue will increase to $286,422.
Filkins also highlighted in his remarks that housing developments like this are crucial for accommodating young professionals such as teachers and nurses within the school district. The development will offer rental units in duplexes and apartment buildings with some smaller one-bedroom options.
