Crossville broke ground Thursday on a $50 million retail development expected to bring 200 jobs, major national retailers and new sales tax revenue.
Mayor RJ Crawford said the 180,000-square-foot Crossville Commons development will accommodate approximately 12 to 15 businesses, just off I-40. Crawford said the project will attract shoppers from surrounding counties.
“It’s a win-win for everybody.” Crawrford said, “From those that want to buy stuff from Hobby Lobby or Aldi’s to those that are looking for a job to the city that’s looking to continue to expand and take care of its constituents without putting a financial burden on them.”
Crawford said the development follows nearly ten years of efforts by city, county and state leaders to restore Crossville’s position as a regional shopping destination. Crawford said the project became financially possible through a sales tax increment financing arrangement that uses revenue generated by the new businesses to help pay for infrastructure rather than requiring the city to provide incentives upfront.
“So this is kind of a retroactive approach where instead of giving that money up front, we’ll have that money as it filters in, pay for the financing of other costs that otherwise the developer would have to pay on the front end,” Crawford said.
Crawford said the project includes a 1,500-foot extension of Interstate Drive, constructed as a five-lane road to T-DOT specifications. Crawford said the extension is part of a long-term plan to connect Interstate Drive to Peavine Road, improving traffic flow and creating opportunities for additional development. A traffic signal will also help manage vehicles entering and leaving the retail center.
Crawford acknowledged concerns about competition with existing locally owned businesses but said the national retailers should attract customers who otherwise would shop in Cookeville, Knoxville or Chattanooga.
“I think the concern is valid,” Crawford said. “Anybody that has a business that’s of like-minded of what’s coming in would be concerned, but the reality is what I find is it’s drawing in people from other areas that normally wouldn’t come here.”
Crawford said those additional shoppers could also benefit local restaurants and smaller retailers, creating economic activity beyond Crossville Commons itself.
“And I think it only makes sense that if they go to Hobby Lobby to buy crafts, that they’re also going to probably want to consider a local restaurant just down the road versus having to go all the way back home or into another community,” Crawford said.
Crawford said the additional sales tax revenue could eventually support investments in roads, utilities, parks and recreational facilities without increasing property taxes. He pointed to the revenue generated by Buc-ee’s as an example of how major retail development can help finance community improvements.