Kingsport Housing & Redevelopment Authority

Frequently Asked Questions (FAQ)
about Redevelopment

General Questions

  1. What is the purpose of a redevelopment district?
  2. Who benefits from the Redevelopment Plan?
  3. How long will it take to accomplish the Plan?
  4. Who pays the cost of Redevelopment?
  5. Will property owners within the District be assessed for improvements?
  6. Will Redevelopment Districts be established in other parts of the City?
  7. Why is the Kingsport Housing & Redevelopment Authority involved in Redevelopment Districts?

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Boundary Questions

  1. Who established the boundary of the Redevelopment District?
  2. Who determines that an area is blighted and in need of redevelopment?

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Owners and Tenants Questions

  1. If my property is considered blighted, will it be acquired and when will it be acquired?
  2. Who pays for the property when it is acquired?
  3. Will I get a fair price for my property?
  4. How is fair market value defined?
  5. How will acquisition take place?
  6. Who pays for relocation of a business that is owner occupied or tenant occupied?
  7. What can I expect in relocation expenses?
  8. What help is provided in relocation?

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Developer Question

  1. What assistance is available to a potential developer?

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What is the purpose of a redevelopment district?

The purpose of a redevelopment district is to develop and implement a Redevelopment Plan for the rehabilitation and revitalization of a given area through public and private action.
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Who benefits from the Redevelopment Plan?

All businesses, residents and taxpayers benefit through increased property values, expanded tax base and a renewed interest in revitalization and expansion of the area.
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How long will it take to accomplish the Plan?

All development and redevelopment efforts are controlled by the market place. It is impossible to specify a date when all redevelopment goals will be achieved, but in all likelihood, they will be attained incrementally through phased redevelopment occurring over several years.
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Who pays the cost of Redevelopment?

Most redevelopment costs are normally borne by the private sector. However, inducements may be provided by the City and/or the county to attract developments and make the public-private partnership workable.
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Will property owners within the District be assessed for improvements?

The City, in most instances, will finance improvements as an inducement to bring about redevelopment. However, special assessments are an option for all portions of the area for certain improvements.
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Will Redevelopment Districts be established in other parts of the City?

A Redevelopment Subcommittee consisting of a large cross-section of community leaders along with the Kingsport Regional Planning Commission have identified several areas in need of redevelopment which would stimulate private investments and increase the city's economic base. Therefore, Redevelopment Districts could be established in other parts of the city.
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Why is the Kingsport Housing & Redevelopment Authority involved in Redevelopment Districts?

Housing Authorities throughout the state are given responsibilities and powers to carry out redevelopment and urban renewal activities on behalf of the cities in Tennessee. Because of the statutory powers, the City has asked the Kingsport Housing & Redevelopment Authority to undertake these activities.
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Who established the boundary of the Redevelopment District?

There are two Redevelopment Districts that have been identified by the Redevelopment Subcommittee, Planning Commission & Kingsport Housing & Redevelopment Authority (KHRA) that would serve as the initial focus for redevelopment activities. These are the Green Acres / Crown Pointe / Southland area and Stonegate Plaza.
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Who determines that an area is blighted and in need of redevelopment?

The City and KHRA are granted the power to determine whether an area is blighted, and therefore, subject to inclusion in a Redevelopment District. Blighted areas as defined by state law may be caused by reasons of structural dilapidation, obsolescence, overcrowding, faulty arrangement or design, lack of ventilation, sanitary facilities, excessive land coverage, deleterious land use, obsolete layout or other factors that are detrimental to the safety, health, morals or welfare of the community.
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If my property is considered blighted, will it be acquired and when will it be acquired?

Generally, blighted property will not be acquired unless a development proposal has been received and has been approved by KHRA and the City. On occasion, however, property subject to acquisition may be purchased if the acquisition fulfills a goal of the Redevelopment Plan within the district.
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Who pays for the property when it is acquired?

When property is acquired to carry out a redevelopment proposal, KHRA will purchase the property, using funds from several potential sources including the City, KHRA, private enterprise, grants and loans.
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Will I get a fair price for my property?

KHRA has adopted a Land Acquisition Policy, which sets forth a procedure to purchase property at its fair market value. The value is determined by independent, professional appraisers who examine the property. The owner or owner's designated representative shall be given the opportunity to accompany the appraiser during the inspection. KHRA may, at its discretion, order additional appraisals to determine the fair market value. With this approach, the property owner is assured of a fair price for his property.
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How is fair market value defined?

Fair market value is defined in the adopted Land Acquisition Policy as "What a willing buyer is willing to pay, but is under no compulsion to do so, and what a willing seller is willing to sell for, but is under no compulsion to sell."
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How will acquisition take place?

KHRA has adopted a Land Acquisition Policy that will be followed in all procurement activities. If a development proposal is approved for property that is subject to acquisition, and the current owner does not wish to develop the property based upon the approved plan, he will be offered the fair market value for his property. If the fair market value offer is refused, KHRA may acquire the property using its eminent domain powers.
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Who pays for relocation of a business that is owner occupied or tenant occupied?

All eligible relocation expenses will be paid for from funds provided by the City in accordance with a budget that is approved concurrent with the approval of any Development proposal. Any relocation expense will be based on the Relocation Policy as adopted by KHRA.
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What can I expect in relocation expenses?

KHRA has adopted a Relocation Policy which sets forth the procedure for relocation. The policy is designed so that an occupant or tenant will receive reasonable expenses in moving tangible personal property from acquired property, storing such property for a period not to exceed six months if required or payment for personal property which cannot be moved.
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What help is provided in relocation?

In addition to financial assistance generally outlined in Questions 6 and 7, KHRA will provide technical advice and assistance to any displacee in order to assist in finding a replacement location within the financial reach of the displacee.
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What assistance is available to a potential developer?

Depending upon the scope and quality of any Development Proposal received, KHRA and the City have a variety of resources and inducements available to them which, at their option, could be used to structure an attractive public/private partnership to achieve important goals of the Plan. Some of the major inducements that are available to KHRA and City are:
  1. The ability to assemble and hold property for redevelopment, using eminent domain powers if necessary;
  2. The ability to acquire property at fair market value and dispose of such property at its use value as determined by KHRA;
  3. To provide for infrastructure improvements such as Street Scape Improvements;
  4. To provide street and/or public parking facilities and structures;
  5. To assist in the creation of an Improvement District in order to provide amenities supportive of project redevelopment;
  6. The ability to amend the Plan to include provisions for tax increment financing opportunities to secure debt associated with major public improvements of a major redevelopment effort; and
  7. The ability to carefully control the type and quality of existing and future development within the Project to assure compatibility with major Project redevelopment.

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For more information about Redevelopment, visit HUD Web Site

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