Knox County commissioners are set to vote Sept. 28 on whether to override the first veto a Knox County mayor has issued since 2015.
Once a rarity, newly elected Mayor Betsy Henderson is promising that vetoes will become a regular part of the give-and-take between her administration and the County Commission.
Her first veto, a week after she took office Sept. 1, froze a proposed townhouse project in South Knox County that relies on a PILOT, or payment in lieu of taxes. A PILOT is an incentive that freezes a property's tax value for a set period.
Henderson will approach each resolution and ordinance the commission approves "on a case-by-case basis, so you can expect more vetoes in the future," spokesperson Jenna Triplett told Knox News on Sept. 9.
The veto caught lawmakers off guard because it shut down a tax incentive that was approved with a 7-4 majority and supported by former County Mayor Glenn Jacobs. The PILOT would give a financial incentive for developer Dominion Group to build 40 units of workforce housing as part of the 80-unit development along one of Knoxville's busiest corridors.
Henderson did not answer a question from Knox News about what factors she'll use to determine whether to allow other projects like the one planned by Dominion Group. Triplett, instead, said "the (deal with Dominion) is simply not a good business deal. With the 50% abatements, the tax revenue generated from the development would not be enough to cover the cost of essential services offered by the county. Not to mention, the area currently does not have the infrastructure to support it.”
Henderson previously said she was motivated by community pushback against the project. South Knox County Commissioner Andy Fox expressed strong opposition to the project and said neighbors were against it, though neither Henderson nor Fox quantified the number of opponents.
The county's deal allowed Dominion to pay 50% of the property taxes it owes over 20 years in exchange for making half of the townhomes available to people who make 80% to 120% of the Knoxville metro median income. That's $103,700 for a family of four, which comes out to a range of $82,960-$124,440.
For reference, the base annual salary for a Knoxville firefighter is $48,861. Knox County teachers earn at least $50,089 per year during the 2026-27 school year, according to the 200-day salary schedule. Both salaries meet the threshold for the South Knoxville proposal.
"It's an incentive that we use to get businesses to bring in housing for every day heroes like teachers and police officers and nurses," County Commissioner Courtney Durrett told Knox News.
Durrett told Knox News that Henderson's characterization of the apartments puts the commission in a bind.
"On one side you have people in the area that say (workforce housing) would devalue their property," Durrett said. "The other side is, you have people saying this is 'luxury.'"
Right now, the land generates only $884 in property taxes a year. The Dominion Group townhomes would bring in $57,918 a year for 20 years, or $1,158,360 total. That amount would double if another developer is willing to build without a tax abatement, though there is no other viable offer on the empty property.
Henderson's office did not answer a question from Knox News about what factors led to Henderson's conclusion that the revenue wouldn't cover the cost of essential services or that the county couldn't support the development.
The land is zoned to accommodate 88 units of housing, which is also less than the 80 units Dominion Group planned to build. Because the land is already zoned for 88 units, the county wouldn't have a say over how many homes could go there unless a new land owner proposed a change.
Will the commission override Henderson's veto?
Knox County Commissioner Terry Hill – a Republican, like Henderson – is pushing the veto. She'll need six other commissioners to agree with her in order to override Henderson.
"(Attempting to override a veto) is part of the legislative process," Hill told Knox News. "This resolution was passed 30 days ago with a majority vote under Jacobs' administration. I make no apologies for supporting this plan for growth in our community when it comes to affordable housing and workforce housing."
Henderson told Knox News she vetoed the incentive because she does not "believe it’s the role of government to subsidize luxury townhomes that are also used for affordable housing."
There are four commissioners who supported the deal and remain in office: Democrats Durrett, Damon Rawls and Shane Jackson, as well as Hill. The other Republicans still in office – Andy Fox, Angela Russell and Adam Thompson – voted against it.
Jackson, Rawls and Thompson told Knox News they hadn't decided how to vote, while Durrett was an emphatic "yes" to override the veto. Fox and Russell did not respond to Knox News' question about how they plan to vote.
The tax incentive was approved on the last day before new commissioners – Democrat Brandon Huckaby and Republicans Barry Beeler, Justin Cofer and Garrett Holt – were sworn in on Sept. 1.
Huckaby, a new commissioner, told Knox News he hasn't researched the tax abatement policy enough to support it but is working to get a better understanding of it before the scheduled vote.
"I know I might be a minority in my party for that, but the math doesn't math to me," Huckaby said. "I have asked for a meeting with the experts to get a better understanding. I don't know what I don't know."
Holt told Knox News he didn't know how he'll vote, and Beeler and Cofer did not respond to Knox News' question about how they would vote
Allie Feinberg is the politics reporter for Knox News. Email: allie.feinberg@knoxnews.com; Reddit: u/KnoxNewsAllie
This article originally appeared on Knoxville News Sentinel: Knox County Mayor Betsy Henderson: Get used to vetoes | Exclusive
