A week after taking office, Knox County Mayor Betsy Henderson vetoed a tax break for a proposed townhouse project on the south side of the county.
Henderson vetoed the payment in lieu of taxes arrangement approved by the Knox County Commission for developer Dominion Group. The tax break is designed to help the developer finance the project. In return, Dominion Group planned to offer half the townhomes to residents who make 80% to 120% of the region's median income.
“I made a promise to the voters of Knox County that I would prioritize their voices in our government and carefully consider each action I take as mayor," Henderson said in a written statement Sept. 8. "After much thought and listening to the people of South Knox County, I will veto
[the resolution].”
Henderson's Sept. 8 veto runs counter to the effort by former Knox County Mayor Glenn Jacobs, who pushed the project because it helps alleviate the county's housing shortage and adds to the tax base.
“I do not believe it’s the role of government to subsidize luxury townhomes that are also used for affordable housing. I want the Knox County government to provide value for every taxpayer dollar that is spent, and I do not believe the PILOT for this project is a good use of taxpayer funds," Henderson said.
Commissioner Andy Fox, who represents South Knox County, strongly opposed the tax break for the homes on Gov. John Sevier Highway. Before commissioners approved the tax break on Aug. 31 – the last day before Henderson and several new commissioners took office – Fox conducted a workshop in which he said he fielded widespread concern from neighbors.
"There has been nothing but unequivocal, outspoken opposition from the citizens of District 9," Fox said Aug. 31. He and his allies conducted campaigns online to rally neighbors against the project.
The property − on John Sevier Highway near Lowe's and Food City − is vacant.
Seven of 11 commissioners are required to override Henderson's veto. The county charter requires a vote of a majority plus one to override a mayor's veto on resolutions.
Three of the commissioners – all Republicans – who approved the tax break are no longer on the commission as of Sept. 1. The ones who voted to approve it that remain on the commission are Democrats Courtney Durrett, Shane Jackson, Damon Rawls and Republican Terry Hill.
It's impossible to know for sure how new commissioners will vote if an override of Henderson's veto is attempted because they have not established a voting record.
Henderson argued in her campaign that newcomers should pay for growth and only "smart growth" projects should be considered.
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 vetoes tax break for new townhouses
