The Industrial Development Board (IDB) met for a special meeting Thursday (4.16.20) and approved a TIF (Tax increment Financing) draw for the Lakeland Town Center/Lakeland Commons as well as approving an amendment to the purchase agreement with The Collection and ALDI.
Scott Martsolf, director of real estate for ALDI Inc. Mt. Juliet Division, said he is planning on an April 27th start date for construction of the grocery. It will be located on approximately 2.67 acres in The Collection at Lakeland, a planned mixed-use development at the northeast corner of U.S. Highway 64 and Canada Road.
Link to agenda: https://www.lakelandtn.gov/DocumentCenter/View/9006
Audio link: https://www.facebook.com/watch/?v=234841327630690
Because of the COVID-19 pandemic, the meeting was conducted by electronic/telephonic means of communication.
IDB members first approved a $214,479.32 TIF draw request for Lakeland Commons/Lakeland Town Square. The table shows the breakdown amounts for two vendors.
| Vendor | Amount |
| Memphis Light Gas & Water | $49,120.42 |
| Montgomery Martin Contractors, LLC | $165,358.90 |
| Total | $214,479.32 |
The second agenda item approved by IDB members was an amendment for The Collection and ALDI. Al Bright, IDB attorney, said earlier in April, the IDB approved a transaction whereby the Lakeland IDB would receive property from The Collection at Lakeland, LLC (the “Collection”), and upon receipt, transfer such property to ALDI, for ALDI to build a retail grocery store.
“This retail grocery store would be located at the northeast corner of Highway 64 and Canada Road in Lakeland, Tennessee,” said Mr. Bright.” Initially, in accordance with the terms of this transaction, ALDI agreed to commence construction of an ALDI retail grocery store within three years after ALDI received the property. In the event ALDI did not commence construction of an ALDI retail grocery store within thee years after ALDI received the property, ALDI would either (i) commence construction within 30 days after notice from the Lakeland IDB or (ii) convey the property to the Lakeland IDB within 30 days after notice from the Lakeland IDB.” 
He added,” Due to our discussions with the Collection and ALDI, ALDI has agreed to commence construction of an ALDI retail grocery store within six months after ALDI receives the property, subject to force majeure (unforeseeable circumstances). In the event ALDI does not commence construction of an ALDI retail grocery store within 6 months after ALDI receives the property, subject to force majeure, ALDI shall either (i) commence construction within 30 days after notice from the Lakeland IDB or (ii) convey the property to the Lakeland IDB within 30 days after notice from the Lakeland IDB. In the event that ALDI re-conveys the property back to the Lakeland IDB as provided above, the Collection wants the Lakeland IDB to convey the property back to the Collection, at no cost.”
He reminded Board members the IDB is not paying any cash for its receipt of the property and is not receiving any cash for its transfer of the property to ALDI.
Mr. Martsolf was asked about the ALDI position on changing the term from three years to six months. He responded it did not make a whole lot of difference. He said it was just tying things together. “We had a date on the 13th,” he said. “But now we are planning on April 27th for a start date. We’re ready to start construction. We’re making everyone feel comfortable with the final documents.”
Dexter Muller, economic development consultant for Lakeland, part of the reasoning for the change to six months from three years was the impact of ALDI waiting 2½ years to develop. “That meant that The Collection couldn’t develop their properties either because they’re relying on utilities. Knowing that Scott was going to start construction anyway, they just wanted to make the documents comparable.”
