Mike Ross’s financial entanglements don’t create risk for Pellissippi Place R&D park
By Robert Norrisof The Daily Times Staff
Originally published: August 20. 2009 3:01AM
Last modified: August 20. 2009 12:27AM
Financial entanglements involving Blount County real estate developer Mike Ross will not impact the Pellissippi Place research and development park.
That’s according to Bryan Daniels, executive vice president of the Economic Development Board of the Blount Partnership.
“He doesn’t owe us anything, and we don’t owe him anything,” Daniels said Wednesday.
The 450-acre site at Pellissippi Parkway (I-140) and Old Knoxville Highway (U.S. 33) was purchased from Ross for about $10.5 million in 2006.
The former Luther Jackson farm property is being developed by the board representing a partnership of four governments — Alcoa, Maryville, Blount County and Knox County,
which each contributing $5 million to the project.
The plan is for Pellissippi Place to be a mix of knowledge-based business, urban residential and a festive retail corridor along a river walk, all linked by a pedestrian parkway.
Although unlikely, there could potentially be a financial exchange between the development board and Ross — or his creditors — if the board sells commercial or residential property on the site for less than its assessed value, Daniels said. That would involve 55 acres committed for commercial development and 70 acres dedicated for residential.
In case of such a transaction, the loss in potential profit from the sale, minus development costs, would be split 50-50 between Ross and the Blount County Economic Development Board — meaning the board would make up half the difference to Ross.
That scenario is remote because the board does not provide price incentives for commercial or residential parcels, Daniels said.
The bulk of the Pellissippi Place property is dedicated to R&D businesses, and those 230 acres are excluded from the profit-split agreement.
The sale price of the property in 2006 was between $19,309 and $23,500 per acre. Based on prices currently paid for property along the Pellissippi Parkway extension, parcels in the R&D park could potentially be sold for more than $300,000 per acre, Daniels said.
Before selling the former Luther Jackson farm property, Ross said he had intended to develop it himself.
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