Johnson City Approves $21M Tax Incentive for 1,049-Unit Burlington Mills Redevelopment

Johnson City's Industrial Development Board approved a land grant and tax incentive agreement worth more than $21 million for the redevelopment of the former Burlington Mills property on McKinley Road — clearing the financial path for a $240 million project that will deliver 1,049 apartments and 100,000 square feet of retail space in six phases over eight years.

What is being built at the Burlington Mills site?

Developer Excimia plans to transform the 34-acre Brush Creek and Burlington Mills site into a mixed residential and retail destination. The first phase is two five-story buildings totaling 190 units, with completion expected in early 2028. The deal includes public infrastructure worth more than $35 million from the city, covering stormwater improvements, a public park, road upgrades, and a connection to the Tweetsie Trail. "The first phase is two buildings, five stories each, total of 190 units. We anticipate completion in the early 2028," said Excimia owner Yuri Miller.

What are the taxpayer protections?

The IDB agreement includes performance and reporting milestones designed to protect taxpayer money. The developer must build accompanying retail space starting with at least 14,215 square feet in phase two and 39,210 square feet in phase three. If milestones are missed, the incentive can be adjusted.

How does this compare to other Tri-Cities development?

Tri-Cities home sales rose 8.4% in the first half of 2026, with the move-up market ($300K–$499K) leading at 15.3% growth. The only declines came at the entry level — not because demand dropped, but because inventory below $160,000 has been priced into higher brackets as values rose. That shift is exactly the gap a 1,049-unit apartment project is designed to fill: workforce and middle-income renters who cannot find or afford purchase inventory.

What does this mean if you own or buy in Johnson City?

• Renters: 1,049 new units over eight years is meaningful supply. If you are renting now and watching for price relief, the first 190 units should be available by early 2028.
• Homeowners near McKinley Road: large mixed-use projects tend to lift values in the surrounding blocks once completed and occupied, but construction traffic and noise are a short-term drag. Plan your listing timeline accordingly.
• Move-up sellers: the Tri-Cities move-up segment grew 15.3% in the first half — buyers in the $300K–$500K range are active. If you have been waiting to sell, the demand is there right now.
• Investors: the Tweetsie Trail connection and retail component signal a neighborhood repositioning. Properties within walking distance of the completed project will trade differently than they do today.

Sources: Johnson City Industrial Development Board meeting (WJHL and WCYB, April 23, 2026); Johnson City news release on IDB approval; Northeast Tennessee Association of Realtors (NETAR) mid-year home sales report, July 18, 2026.

*Tracy and seller must agree on price and possession date