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economic_development_iconEconomic development policies encourage investment in key commercial areas.

The City recognizes the economic value of real placemaking and integrates programs along with strategic investments in infrastructure to encourage private development. The City’s economic development policies and planning initiatives incorporate land use, infrastructure and connectivity, which facilitate opportunities for these vital areas to flourish. These considerations are critical for the future of Germantown due to limited land and resources. The resulting tax base, workforce, property values and quality of life are a reflection of its success. By creating a vibrant city center and facilitating other strategic investments, the City gives people a reason to come to Germantown and to return for the Germantown experience.

On Target Commercial tax base revenue

Description

An increase in Germantown's commercial property values decreases the City's dependency on residential property tax. The City continues to focus on economic policies for mixed use and higher densities within key commercial areas creating a more sustainable and balanced tax base.

 

Analysis

The criteria used for this measure was to compare commercial real property tax revenue to total property tax revenue. In fiscal year 2022, the commercial tax base revenue made up 21.80% of the total property tax revenue. The total commercial tax revenue decreased by 3% compared to FY21. This decrease is due to having no commercial greenbelt real estate based on the Shelby County Assessor of Property report for April 2022.

 

Impact

The City has moderate impact on this measure.

Not Defined Value of new construction in key commercial areas

Description

New construction and redevelopment of existing structures within the City's key commercial areas is a key indicator of policies supporting (re)investment. This is determined by the value of the building permits for each quarter.

 

Analysis

The City continues to see overall increased growth in the number and value of projects at the beginning of the first quarter of FY23, and increased values of projects over time. In spite of the COVID-19 pandemic and other national economic conditions, the projects are continuing to move forward. These projects can be dependent on many variables, including seasonal weather disruptions. The City continues to have a high occupancy rate of 97% and 95% respectively for retail and office spaces.

Projects both large and small take time to construct after approvals; notwithstanding other economic conditions such as commodities rising and supply chain issues. When there is a drop over multiple fiscal years in value of new construction in key commercial areas that would indicate a need to look further at why new projects are not moving forward.

 

Impact

The City has moderate impact on this measure.

On Target Job growth

Description

Job growth is an indicator of expansion in the economy. This measure represents an increase in the economic opportunities and available jobs in Germantown.

 

Analysis

This fluctuation is directly related to the continuing COVID-19 pandemic recovery and inflation pressures. These fluctuations in jobs and growth in the business community could continue as the economy recovers from the pandemic.

 

Impact

The City has moderate impact on this measure.

On Target Median residential property value in key commercial areas

Description

This measure is intended to track the growth in residential property and values within the key commercial areas of the City of Germantown. The median residential property value is the midway point of all the houses/units sold at market price (or sold amount) over a set period (monthly, yearly, quarterly, etc.). One half of the homes are higher in price and the other half of the homes are lower in price.

 

Analysis

In fiscal year 2022, the median residential property value in key commercial areas is $462,000. Residential properties are continuing to be developed in key commercial areas.

 

Impact

The City has a moderate impact on this measure.

On Target Median home price

Description

When looking at neighborhood home prices, the median price is usually the best reflection of a typical home price since it will not be affected by a few very expensive or lower priced homes in the sample.

 

Analysis

Median home prices continue to hold their value or rise in Germantown as homes hold their value and the supply remains low. As new developments are completed and homes are added to the inventory the City expects this trend to continue. However, if there is a drop in median home price over fiscal years it would indicate a need to investigate the change locally and the City will work with the real estate community to determine the driving factor. As of fiscal year 2022, the median home price in Germantown is $462,000. There has been a gradual increase over the years. Looking at fiscal year 2015 versus fiscal year 2022, there has  been over a 30% increase. 

 

Impact

The City has minimal impact on this measure.

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WWW.GERMANTOWN-TN.GOV
1930 SOUTH GERMANTOWN ROAD
GERMANTOWN, TN 38138 | (901) 757-7200
 
©2016 THE CITY OF GERMANTOWN. ALL RIGHTS RESERVED.