By John I. Carney

Staff Writer

As the spec building in I-65 Commerce Park is in the final stages of being sold to an unidentified buyer, the Industrial Development Board is already looking to the future.

Director of Economic Development Greg Lowe told the board that there are three options for the remaining space in the park.

The first option is to do nothing.

"That, in my opinion, is the least option," said Lowe.

The second option is to develop "pad-ready" sites at the park. These are sites with all of the preliminary work, such as site preparation, done, so that the company can move in and begin pouring a pad.

Lowe is finishing the state's Select Site Certification program, updating the information on available sites so that the state can certify the existing sites in the park as ready for development. He still needs topographical information and a survey in order to prepare a master development plan as required by the state for a site to be certified. He envisions 5 to 7 acre tracts with one to three "pad-ready" sites.

The third option is a new spec building. "Pad-ready" sites don't always show up online when industries are searching for places to locate, and spec buildings are more likely to attract attention, said Lowe.

The existing 63,000-square-foot spec building is now in the process of being sold, and the board refers to it as "Project Now" rather than identifying the buyer. Lowe said a new spec building might need to be larger.

Aaron Stewart of Tennessee Valley Authority, who works with industrial recruitment, told the board that while pad-ready sites are better than doing nothing, they do have their drawbacks, and because of the site preparation they can erode if not sold in a timely manner. He said that if the board does consider a spec building, it should look at one no smaller than 60,000 square feet, with no less than a 37-foot-high ceiling. He said a 60,000-square-foot building is relatively standard, which isn't a bad thing, but that some clients have been known to search for 70,000 or 80,000 square feet. Lowe said the desired building height has increased in recent years. He said a building should be designed so that the buyer has the option to expand it, not only in one direction, but in either of two directions.

Stewart said TVA has a flexible loan program for spec buildings, sometimes in partnership with a local bank in the community being served.

Chairman Eddie Wiles said Councilman Ronald McRady had suggested that perhaps money from the sale of the spec building be used for continuing industrial recruitment projects like a new spec building.

Lowe said that, contrary to some public opinion, there's not much available industrial space at the moment.

Wiles said the community must have space to show in order to continue its industrial momentum.

"To slow down now, I think, would be a mistake," he said.

Lowe said he hopes to have a more specific proposal for a spec building at the May or June meeting. He will get cost estimates for a 70,000 or 80,000-square-foot building.

Meanwhile, reported Lowe, Marshall County has applied for three state grants related to I-65 Commerce Park. The first, an infrastructure grant, has an 18 percent local match. The match would have been higher, 25 percent, if the city had applied for it, so the county agreed to be the applicant. City and county governments had already agreed to pay $11,610 each for that local match.

The original proposal was only for infrastructure improvements, however, with the assumption no site prep would be needed. It now looks like there will be some site prep needed at the northernmost end of the site. St. John Engineering was reluctant to provide a preliminary estimate, said Lowe, but finally estimated a cost of $30,000 for the site prep. Lowe said he believes this estimate to be conservatively high.

The county won't agree to the additional matching funds, so the city will be asked to bear the additional amount, which would be about $6,000 to $8,000. Lowe wants the city to agree to the additional amount at its April 9 meeting; the cost will be discussed at the city's planning retreat this week.

Two other grants, an economic development grant and a fast track training grant, have been applied for, but require no local matching funds.

The city will also be asked to sign a "letter to incur costs," agreeing to pay the engineering firm in the event that the state denies the grant proposals.

The industrial board voted to recommend asking the city for the matching grant amount.

Lowe said he was in talks with a restaurant and hotel chain franchisee looking to locate a hotel and one or two restaurants. The project would be paid for through Tax Increment Financing (TIF). New development can increase property values, and this type of financing assumes an increase in property value, and the tax revenue that goes with it, to repay the debt. TIF financing started and became popular in California, but is no longer used there. TIF financing has been used for industrial and retail projects in several other communities, including Fayetteville, Lawrenceburg and Maury County.

Lowe said he's proceeding carefully. He has identified a counsel who is familiar with TIFs and with the franchisee in question. He will get a letter from the attorney in a few days and then schedule a conference call with the attorney and the board.

Wiles said Lowe was right to be careful and to research the issue. He said he's not sure that a single development can cause an entire retail area to develop in a small town exactly the same way it does around a mall in a major metropolitan area.

Lowe said he was not asking for any action on the TIF proposal at this time.

Other discussion at the meeting included the following topics:

* Lowe said he's applied for a TVA grant for new signage at both Lewisburg Industrial Park and I-65 Commece Park. The cost estimate for three signs is $35,000, of which TVA will pay half.

* IDB agreed to contribute $2,500 in industrial appreciation funds towards the annual Marshall Manufacturing Association golf tournament, which will be held May 23 at Saddle Creek Golf Course. That contribution may be reduced based on hole sponsorship sales, and mulligan and red tee sales to the players.

* The terms of Wiles, Sam Kirby and Dave Kennedy on the IDB are about to expire. All three are willing to return for new six-year terms. The board voted to recommend reappointment.

* Lowe reported that Marvin's Building Materials and Home Center is moving into the old Food Lion building.