Washington officials have approved a compromise grant designed to help redevelop vacant space at Cherry Tree Plaza while protecting taxpayers. The shopping center’s owners will receive $50,000 in two installments, but only after completing renovations and demonstrating that a sales-tax-generating tenant is committed to the expanded space.
Key takeaways
- The grant was approved unanimously after an earlier 4-2 rejection.
- Owners must complete an estimated $90,000 renovation before receiving the first installment.
- A qualifying tenant must be secured by the end of 2028.
- The agreement addresses concerns about funding an out-of-town property owner.
The council described the arrangement as a compromise that provides an incentive for redevelopment while requiring measurable results. Cherry Tree Plaza is at the northwest corner of Washington Road, also known as U.S. Business Route 24, and Cummings Lane.
Grant conditions answer council concerns
The property’s owners, managed by Florida-based American Commercial Realty, plan to expand a temporarily occupied 12,500-square-foot area into a 25,000-square-foot commercial space. They must provide paid receipts for the estimated $90,000 renovation before receiving the first half of the grant.
The second installment depends on proof of a binding lease or comparable evidence that a tenant capable of generating sales tax will occupy the space by Dec. 31, 2028. A company representative previously told council members that the grant was important to attracting a prospective tenant.
Council members had rejected the proposal in July, citing concerns over taxpayer support for owners based outside the area and uncertainty about whether the vacant space would be filled. Members later said the revised terms offered needed safeguards.
City sets three-year priorities
The council also approved a strategic plan covering 2026 through 2029. The plan was developed with public and stakeholder input and includes these priorities:
- Determine a path forward for the Farm Creek sewer trunkline.
- Sell and develop the “223” property along U.S. Route 24.
- Redevelop U.S. Business Route 24.
- Find ways to reduce costs and ease the property-tax burden.
- Complete a study of the city’s space needs.
The plan’s vision calls for honoring Washington’s heritage while pursuing future growth and community unity. Its mission emphasizes efficient city services, civic pride and quality of life.
Other council actions
Council members accepted final payments for two infrastructure projects. The Candlewood Bridge repair finished about $25,400 under budget, while the Bondurant Street water-main replacement remained below its $360,000 budget despite an unforeseen parallel water main that added roughly $35,100 to the contract.
Other actions included:
- Authorizing up to $110,000 for road salt through a state purchasing program.
- Approving a digital billboard near McClugage Road.
- Making appointments to the Economic Development Commission, Planning and Zoning Commission and Tree Board.
- Advancing regulations that would license smoke and vape shops and cap the number at four.
- Adding a Northern Tazewell Fire Protection District representative to the Washington Fire Department Board.
- Honoring Washington High graduate Stuart Levenick with a city proclamation for his philanthropic work.
Mayor Lilija Stevens’ next informal community discussion, “Let’s Talk Washington,” is scheduled for Sept. 22.
