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The Knoxville City Council will work with the Knoxville Veterans Alliance on a tax plan that will be fair for both parties. That’s what the council and City Manager Harold Stewart discussed last night during a special city council meeting. Nearly two years after initially asking, the City heard back from the VA about the issue of taxation earlier this month. The land on the VA property remains tax-exempt, but the buildings and any improvements to the buildings are subject to property taxes by the city once the Enhanced Use Lease is signed.

Stewart drafted a letter to Veterans Alliance Partner James Washington on behalf of the City. The letter states that they will negotiate a plan that’s fair for both parties. The Council and Stewart agreed that they will use a number of strategies initially in order to make sure the development is successful, including tax abatement, tax increment finance, and tax credits. Over time, those incentives would slowly be rolled back so the campus is eventually fully on the tax rolls of the city.