The golf-themed entertainment center will be located near the Happy Holler District in North Knoxville.
KNOXVILLE, Tenn. — The Knoxville City Council will debate March 19 whether to approve a tax alternative payment agreement that could lead to the construction of a $30.7 million “golf-themed” entertainment complex. It is.
The facility will be located near the Happy Holler District in North Knoxville, on the former site of PSC Metals. It will be approximately 40,000 square feet and will be owned by Knox OnCore, LLC. It would provide food and beverage services and would be located specifically at 622 Richards Street, according to documents related to the proposal.
In those documents, Knox Oncor said construction is expected to take about a year and a half, with an expected opening date in 2026. The company also expects to generate approximately $13.2 million in revenue in its first year of operations, primarily from food and beverage products.
According to financial reports related to the PILOT agreement, without the PILOT agreement, investors could expect to earn approximately $25 million by 2035, with an estimated internal rate of return of 11.7%, and real estate development lower than the vendor's standard target.
According to the report, the PILOT deal allows investors to expect profits of about $27.5 million over the same period, with a rate of return of about 13.7%, on the lower end of most developers' goals.
“The estimated financial returns for the project are calculated using a number of possible outcomes, so the actual financial returns will differ from the estimated returns,” the report said.
The city said construction of the entertainment center “will revitalize blighted vacant land along the transit corridor and support recent infrastructure investments in the area.” The city also said the construction of a new recreational facility will create new jobs in the area.
Knox OnCore, LLC also participates in the state's Brownfield Voluntary Cleanup Monitoring and Assistance Program, helping clean up vacant former industrial sites.
“The renovated brownfield area commercial activity center provides an opportunity to revitalize the abandoned site through programs and partnerships with local youth sports organizations such as First Tee Tennessee Greater Knoxville,” the city said. said. “This project requires a pilot in order for the owner to move forward with redeveloping the site.”
According to the city, the pilot contract will be for nine years, with a two-year construction period. During the term of the agreement, the developer will have to pay the city $185,705 annually and the county $133,884 annually.