KINGSPORT, Tenn. (WJHL) — The Kingsport Board of Mayor and Aldermen approved incentives for new developments at the Fort Henry Mall, including the future IMAX theater.
The $2.8 million worth of incentives the board approved Tuesday includes a $2.3 million loan through the Kingsport Economic Development Bureau (KEDB) to the mall’s owner, Hull Property Group.
According to city officials, the loan will help facilitate the new IMAX project, which includes renovating the existing NCG Cinemas, and will be paid back using hotel tax revenue. The incentive will be paid once a certificate of occupancy is issued after construction is completed.
A second incentive of $500,000 through the KEDB will go toward the installation of a private sewer line on mall property, allowing for the development of outparcels. Mall officials announced a multi-tenant restaurant outparcel development that will include an Eggs Up Grill, New York Butcher Shoppe, and another tenant.
According to the city, Hull Properties will repay the KEDB the actual cost over time or as the outparcels are sold.
City officials also said the KEDB approved amending the existing PILOT, or Payment in Lieu of Taxes, agreement for the mall due to the sale of the former JCPenney building, which will transformed into a Rural King, a farm and home supply store.
Hull Properties hopes to open the new theater in the spring of 2025.
The economic impact of the proposed developments is expected to exceed $25 million, according to the city.