Knoxville Approves New Redevelopment Ordinance with Petersen Health Care

Everything’s still on track for construction of an assisted living facility in Knoxville on the old PEO Home lot; however, there was some confusion over the original agreement between the City and Petersen Health Care over redevelopment.

During last night’s city council meeting, aldermen needed to approve rescinding the original agreement and putting a new agreement into place.

Aldermen were told Petersen was under the impression the land was being gifted to them, which is not the case.  Alderman Dennis Maurer explained the problem was the original agreement was too vague.

“We all knew we were selling the land for $150,000, but it wasn’t spelled out specifically in the original ordinance,” Maurer said.  “This is defining clearly that Petersen will pay the city $150,000 for the land.”

Maurer says the city will still be getting revenue from the project by the way of tax revenue.   He says 75 percent of that tax revenue will go back to the city to cover the money the city gives Petersen to get the project off the ground.

Aldermen approved the new agreement with a 5 to 2 vote–Aldermen Toby Myers and Dave Malone voted no.

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