KINGSPORT — The Board of Mayor and Aldermen approved the first, and to date only, incentive under its Professional Housing Incentive Program — $200,000 for infrastructure work in the expansion of the Preston Park subdivision.
In an effort to address the apparent lack of high-end housing in the city, Kingsport officials fast tracked the creation of the PHIP this past winter.
The PHIP reimburses up to $200,000 to a developer for infrastructure improvements to a new or expanded subdivision, with at least 16 new lots and houses with a minimum appraised value of $450,000. As houses are sold, the developer pays the city $6,000 each, up to $96,000 after six years.
Amenities, such as a walking trail, playground or park, help with the approval process.
Given the PHIP is a pilot program, the BMA suggested it sunset June 30 for the city to evaluate its success.
Kingsport officials have been promoting the PHIP both prior to and after it went live Jan. 31, with planning officials giving presentations on the incentive to civic clubs, developers and home builders in Kingsport.
Several people have made inquiries about the incentive program, but the only application came from Vic Davis, who plans to move forward with phase three of the Preston Park subdivision. This phase, called "The Summit at Preston Park" calls for a $1.55 million investment with the addition of 27 lots to the subdivision.
Planning Director Lynn Tully gave an update on the project to the BMA during a work session last week.
Tully said the price point for each lot in the new addition is $149,000, with recent sales in earlier phases of the neighborhood ranging from $550,000 to $890,000.
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