The next Turkey Creek

In June, an investment group led by Knoxville developer John Turley purchased a 190-acre parcel at Interstate 40 and Winfield Dunn Parkway. The group plans to build a shopping center with up to 1.2 million square feet of retail, entertainment and hospitality offerings at the location.

Bank financing for the Dumplin Creek project will come from five area lenders who will each chip in $4 million on a participation loan led by Sevier County Bank.

Bank president R.B. Summitt said the other participants are Citizens National Bank of Athens; Tennessee State Bank of Pigeon Forge; Mountain Commerce Bank of Johnson City; and Citizens Bank of Blount County in Maryville.

Summitt said he'd been talking to Turley and business partner Jim Nixon for more than a year. The banker cited the experience of the team in developing West Knoxville's popular Turkey Creek shopping center.

"They've seen what could be produced out there and what results could be accomplished," Summitt said. "And this is sort of a mini-Turkey Creek."

Doug Bishop, the city administrator in Sevierville, was glad to see local money brought into the deal.

"Any time our local banks can participate, we're always pleased when they can work with new developments," he said.

The project is slated to have a development price tag of more than $150 million, and Turley's group hopes to get a little help. The Legislature this year approved a measure that, according to Bishop, allows for the creation of a certain special assessment district in Tennessee communities.

The city administrator said the measure would allow developers to assess a property tax on their own property and use the proceeds to pay off revenue bonds issued to fund infrastructure improvements.

The developers of Dumplin Creek hope to use that process for a number of improvements at I-40 and Winfield Dunn Parkway, which can be heavily congested on weekends and holidays.

For Sevier County Bank, Dumplin Creek was a second helping of success in a matter of days. The bank also financed the purchase of the former Boyds Bear Country retail store in Pigeon Forge, which was bought by a Florida company that plans to transform the building and adjoining property into an American Bandstand-themed theater and museum.

Sevier County Bank provided an $8 million loan on the $12.9 million purchase. Summitt said Sevier County's banking market is competitive but also touted a benefit from all the financial options.

"My personal opinion is that's part of the reason it's sort of a can-do county right now, because you've got five independent community banks," he said.

Josh Flory may be reached at 865-342-6994. He blogs about real estate at http://blogs.knoxnews.com/knx/flory.

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