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Nashville Considering Tax Abatement For Proposed Small Business

The Nashville Town Council is considering a tax abatement for a proposed local business. And while such abatements are often reserved for large corporations, town officials say this project could be worth the investment.

Nashville residents Kara and Clint Hammes are hoping to tear down two older buildings at 185 Jefferson St. South, and then build a two-story mixed use space. It would include a children's play area, a commercial kitchen for local businesses and office space.

Kara Hammes says she believes the project can work even without the abatement. But she says the town's investment makes it less risky.

"A complete demolition, that takes time, that's more money," Hammes says. "It's businesses that don't exist, so it may take some trial and error."

The abatement would allow the couple to pay the current property tax for the buildings already on the land, rather than the full taxes for the building they construct. Those payments would increase to full price gradually over five years.

Town council president Charles King says the current buildings are vacant and derelict. He says if the Hammes develop the land, it will generate more money for the city over time.

"If we didn't do anything, there wouldn't be anything there to tax," King says. "Now we've got a bigger building to tax, and in five years we'll get many more times the taxes we get now."

King says considering a tax abatement for the smaller project, rather than a large corporation, makes sense in a community like Nashville.

"We're not a big community, so we don't have big things," King says. "We're a small community, so we have small things. We have to adjust our thinking."

The Town Council voted in favor of the abatement at its May meeting, but required that Nashville's Redevelopment Commission also approve it before it goes into effect.

Hammes says her team is working to change some of the language in the resolution after previous meetings with the redevelopment commission. And King says the commission is studying the matter ahead of their next meeting.

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