Special Use
8-E-25-SU
To be heard August 14, 2025Agenda Item No. 24
Planning Staff Recommendation
Deny the development plan and alternative compliance request for a branch bank with a drive-through facility due to not meeting the purpose and intent for alternative compliance with the TC-1 (Town Center) district regulations (Article 3, Section 3.12.N.3) or the Development Plan and Standards for Northshore (Town Center).
Request
Property Info
Case Notes
What's next?
Applicant Request
− +Zoning
- Current
C-R-2, (C)
C-R-2 (Regional Commercial), (C) (Previously Approved Planned District)The C-R Regional Commercial Zoning District is intended to accommodate medium- to large-scale commercial development within the City of Knoxville that serves both local and regional markets. Such development may generate a considerable amount of traffic, and typically requires significant area for off- street parking. High-density residential uses are also permitted within the C-R District, to facilitate mixed-use development where appropriate. The C-R District is divided into two
levels of intensity related to the overall form and design of the
development; however, uses are the same across all levels.
Land Use
- Current
Agriculture/Forestry/Vacant Land
ProposedBank with drive-through facility
Property Information
− +2002 THUNDERHEAD RD
West side of Town Center Blvd, north of S Northshore Dr
Council District 2
Size
1.02 acres
Planning Sector
Southwest County
Land Use Classification MU-CC (Mixed Use Community Center), SP (Stream Protection) MU-CC (Mixed Use Community Center), SP (Stream Protection)
Agriculture/Forestry/Vacant Land
Growth Plan
N/A (Within City Limits)
Fire Department / District
Knoxville Fire Department
- Utilities
- Sewer
First Knox Utility District
WaterFirst Knox Utility District
Case Notes
− +Staff Recommendation
Deny the development plan and alternative compliance request for a branch bank with a drive-through facility due to not meeting the purpose and intent for alternative compliance with the TC-1 (Town Center) district regulations (Article 3, Section 3.12.N.3) or the Development Plan and Standards for Northshore (Town Center).SUMMARY OF REQUEST
This proposal is for a 4,135 sqft ORNL Federal Credit Union branch bank with two drive-through lanes and modifications to the former TC-1 (Town Center) district regulations utilizing the "alternative compliance" provision in the TC-1 Administrative Procedures, Article 3, Section 3.12.N.3. of the former zoning ordinance (see page 12 of Exhibit E).
The structure is set back approximately 50 feet from the front property line with two drive-through lanes and a sloped planting area between the structure and the road. Parking associated with the branch bank is on the south side of the new structure. The two small parking areas along the boardwalk are intended for additional parking for the existing 3-story ORNL office building. NOTE: All surface parking in the TC-1 district must be shared and cannot be reserved per the shared parking agreement approved with the Development Plan and Standards for Northshore ("Development Plan").
The relevant sections of the former TC-1 zone are provided below.
EXCERPTS FROM THE TC-1 GENERAL DESCRIPTION AND GENERAL REQUIREMENTS
(See Exhibit E for the full TC-1 zoning standards)
1) General description. The purpose of the town center district is to encourage the creation of pedestrian-oriented, mixed-use urban developments, providing shopping, employment, housing, and business and personal services… A high level of attention to site and building design is required to promote attractive, functional development that is more compatible with residential development than other commercial zoning districts.
2) The core area. Pedestrian-oriented uses are required on the ground floor. Upper-story uses can include dwellings, offices, studios, or other permitted uses identified in subsection C. The minimum area shall be two (2) acres. The core area should be created along a main street or public square.
ALTERNATIVE COMPLIANCE
The administrative procedures for the TC-1 zone allow for alternative compliance to be considered by the planning commission (Article 3, Section 3.12.N.3). This section states that "the purpose of alternative compliance is to foster innovative, high quality, environmentallysustainable development that meets the intent of this pedestrian-oriented, mixed use district that would not otherwise be allowed by a strict interpretation of the district regulations." See Exhibit B for the applicant's alternative compliance request and justification letter.
A. REQUESTED ZONING MODIFICATIONS
See Exhibit E for the full TC-1 zoning standards.
1) Section 3.12.E - Allow a drive-through to be located at the front and side of the building. The drive-through canopy, featuring two lanes, four ITMs (interactive teller machines), and a third bypass lane, is situated to the side and rear of the structure.
NOTE: Drive-through businesses are prohibited except for banks and pharmacies, which must be located to the rear of the structure. However, the drive-through lanes and bypass lane are part of the drive-through facility and are not permitted at the front or side of the structure.
2) Section 3.12.H - Allow off-street parking to be located to the side of the building.
NOTE: Parking is located on the south side of the structure. The parking to the rear of the structure is intended for use by the existing ORNL office building.
DEVELOPMENT PLAN AND STANDARDS FOR NORTHSHORE
1) Conceptual Master Plans
Exhibit F - 2004 Illustrative Master Plan and Land Use Plan
In the 2004 illustrative master plan, the building shown on the subject site is shown with a small footprint and a plaza between the road and building, and a boardwalk to the rear. There is no surface parking in this area.
Exhibit G - 2011 Vehicular Plan and Pedestrian Circulation Plan
In the 2011 vehicular and pedestrian plans in the design guidelines for the PC-1 portion of the development, the subject site shows a 2-story multi-tenant structure located close to the road and two smaller one-story structures along the lake, with surface parking between. The adjacent site to the west, where the existing ORNL building is located, shows a single building close to the lake with parking in front. When the existing ORNL building was approved in 2015 (7-E-15-UR), these 2011 plans were used as rationale for allowing the parking and a drive-through facility to be located in front of the building, even though the 2011 guidelines did not amend the 2004 development plan for the area zoned TC-1, and zoning variances and/or alternative compliance were not approved to allow the parking and drive-through in front. The 2011 plans were also developed with the assumption that the site of the existing ORNL building was to be rezoned to PC-1, but it remained TC-1.
UNDERGROUND UTILITIES
In 2009, a sewer easement was established on the subject site, along the Town Center Boulevard frontage. The concept plan for Town Center Boulevard, Boardwalk Boulevard, and the interstate off-ramp into the site was approved in 2011 (3-SB-11-C), at the same time as the design guidelines for the PC-1 portion of the site that includes the vehicular and pedestrian plans showing a multi-tenant building along the road frontage. The sewer line was installed in 2012 with the roads and other infrastructure improvements. The property owner/developer at the time should have coordinated with the utility district to ensure the sewer line did not have to be moved in the future.
In the applicant's alternative compliance request and justification letter, the sewer line is referenced as justification for the location of the bank building and why the drive-through facility, including queuing lanes, cannot be located to the rear of the building without impacting the vehicular circulation between the adjacent properties. If the sewer line is moved, the building could be built closer to the road, so there is additional space to the rear for the drive-through facility. This would meet the intent of the TC-1 district to create a pedestrian-oriented, mixed-use urban development, as stated in the general description.
MASTER SIGN PLAN
The applicant is also requesting a modification of the master sign plan (3-C-11-UR) to allow a ground sign on the subject site. The existing ORNL building has a ground sign, and that was the only ground sign approved in this area. If approved, the sign cannot exceed 30 sqft in area and 6 ft in height.
STANDARDS FOR EVALUATING A SPECIAL USE (ARTICLE 16.2.F.2.)
1) THE USE IS CONSISTENT WITH ADOPTED PLANS AND POLICES, INCLUDING THE GENERAL PLAN AND THE ONE YEAR PLAN.
A. The One Year Plan and Southwest County Sector Plan's land use classification is MU-CC (Mixed Use Community Center), which is envisioned to be developed at a moderate intensity with a variety of housing types. The core of the district, with its predominant commercial and office uses, should be within 0.25 miles of the higher intensity residential uses (such as townhouses and apartments). The location criteria excludes auto and truck- oriented uses such as industrial, strip commercial, and warehouse/distribution uses unless the proposal calls for redevelopment of such areas.
B. The proposed branch bank is considered an office use, but it is auto-oriented because of the drive-through facility that wraps around the building.
C. The proposal is not consistent with General Plan, Development Policy 10.4, to rigorously enforce zoning regulations and conditions of approval to maintain public confidence in the planned development process, because it does not meet the TC-1 zoning standards or, in Staff's opinion, the purpose of alternative compliance, which is to foster innovative, high-quality, environmentally-sustainable development that meets the intent of this pedestrian-oriented, mixed-use district that would not otherwise be allowed by a strict interpretation of the district regulations.
2) THE USE IS IN HARMONY WITH THE GENERAL PURPOSE AND INTENT OF THIS ZONING CODE.
A. The former TC-1 district is intended to encourage the creation of pedestrian-oriented, mixed-use urban developments, providing shopping, employment, housing, and business and personal services. A high level of attention to site and building design is required to promote attractive, functional development that is more compatible with residential development than other commercial zoning districts.
B. The building is set back approximately 50 ft from the front property line, with drive-through lanes between the building and the public right-of-way, which is not consistent with the intent of the TC-1 zoning, to create a pedestrian-oriented development, or the conceptual master plan for Northshore Town Center.
C. The TC-1 district allows a 1-story structure with up to 7,000 sqft of ground floor area. The proposed 4,185 sqft bank is consistent with this standard.
3) THE USE IS COMPATIBLE WITH THE CHARACTER OF THE NEIGHBORHOOD WHERE IT IS PROPOSED, AND WITH THE SIZE AND LOCATION OF BUILDINGS IN THE VICINITY.
A. The proposed 1-story structure is consistent with the existing development in the area, which includes the adjacent 3-story ORNL office building and 1-story commercial and office structures on the opposite (east) side of Town Center Boulevard.
NOTE: The development on the opposite side of Town Center Boulevard does not have the same zoning and development standards as the subject property.
B. The building is located in the middle of the lot, which is not consistent with the conceptual master plan that shows buildings located along the road frontage or the lake. The buildings directly across Town Center Boulevard, which are more directly related to the subject site, are approximately 25 ft from the front lot line.
4) THE USE WILL NOT SIGNIFICANTLY INJURE THE VALUE OF ADJACENT PROPERTY OR BY NOISE, LIGHTS, FUMES, ODORS, VIBRATION, TRAFFIC, CONGESTION, OR OTHER IMPACTS DETRACT FROM THE IMMEDIATE ENVIRONMENT.
A. The bank with a drive-through facility, as proposed, could have a negative impact on pedestrian safety.
5) THE USE IS NOT OF A NATURE OR SO LOCATED AS TO DRAW SUBSTANTIAL ADDITIONAL TRAFFIC THROUGH RESIDENTIAL STREETS.
A. The bank with a drive-through facility will not draw additional traffic through residential streets.
6) THE NATURE OF DEVELOPMENT IN THE SURROUNDING AREA IS NOT SUCH AS TO POSE A POTENTIAL HAZARD TO THE PROPOSED USE OR TO CREATE AN UNDESIRABLE ENVIRONMENT FOR THE PROPOSED USE.
A. There are no known uses in the vicinity that could be a potential hazard or create an undesirable environment for the proposed use on this site.
What's next?
− +Planning Commission decisions on Special Use (SU) cases are final unless appealed.
SU cases do not move forward to City Council unless the request is to remove a planned district designation from the zoning map.
Lynn Holt
Case History
- June 24, 2025
Date Filed
- August 14, 2025
To be heard by the Planning Commission