Tesla dealer may recharge Knoxville's West Town Mall

Could Knoxville get a Tesla dealer, thanks to shopping malls’ struggle to stay relevant?

Simon Property Group, owner of West Town Mall, asked Knoxville City Council this week for a zoning ordinance amendment that would allow car dealerships and other uses normally prohibited at shopping malls – and the name floated at that meeting was Tesla.

“West Town Mall has plans for a Tesla dealership,” attorney Arthur Seymour Jr., speaking on behalf of Simon, told council members. “I don’t think it’s been signed, but there’s been strong interest in a Tesla dealership on the west side where the old Sears Auto Center is.”

Council members unanimously approved the amendment on first reading; it’s scheduled for a second and final reading June 19. Councilwoman Gwen McKenzie expressed concern that the application would allow up to 100 vehicles on the site, at any type of auto dealership, so long the Knoxville-Knox County Metropolitan Planning Commission certified the dealer met the legal requirements.

“Typically Tesla, in the past, has only had showrooms because of the way they sell … MPC has tailored this ordinance to restrict the available number of parking spaces,” Seymour said at the council meeting. “There will be no flags, balloons, loudspeakers, radios or anything that you might associate with certain automobile dealerships in this town and elsewhere. It will be a very restrictive use.”

The proposal raises the question of whether the auto center, or the West Town Sears store itself, is viable. On June 1, Sears Holdings announced it would close 48 unprofitable Sears stores, part of the retailer’s long-term decline. The only Tennessee store on the list was the Sears location at Knoxville Center mall; no Sears Auto Centers were mentioned, even those associated with stores slated to close.

Sears Holdings did not respond to questions about the West Town Mall store or auto center.

As for the possible Tesla dealership, most mouths remain closed.

A Tesla spokesperson declined to comment on whether the company has any local plans. West Town Mall management issued a statement through Simon’s PR representative:

“West Town Mall management is pleased to share that the recent property enhancements are nearly completed, while continuing to finalize work on the interior and exterior of the property. At this time, we are unable to share further details on development plans or lease negotiations. We will be happy to share additional updates as new plans are confirmed.”

West Town Mall began internal renovations and an exterior facelift in September 2017. The mall will hold a “Re-Grand Opening” sometime this summer, according to McKenzie Riley at BRAVE Public Relations, which represents Simon.

When asked about the possible Tesla deal Wednesday, Seymour said, “We’re not even sure right now. (Simon) just wants to keep their options open. They would like to have as many options as possible.”

He said Tesla coming is “just a possibility,” and that a dealership for the company might occupy the Sears Auto Center or might go somewhere else.

The only current Tesla dealership in Tennessee is in Nashville. The company has an eight-unit charging station in Turkey Creek, six charging connectors at the Embassy Suites Knoxville West, and two connectors at The Tennessean hotel downtown.

West Town’s owners are “investigating options for maintaining the viability of the mall” including uses not permitted by its current commercial zoning, such as multi-family residential, more office space, health and fitness facilities, and automobile sales, according to the application.

After meeting with MPC staff about anticipated new uses, Simon Property Group applied for a zoning amendment to allow some of those uses, “for redevelopment of the mall and use of spaces being vacated by current tenants.” The change would apply only to Knoxville’s two regional shopping centers: West Town Mall and the long-troubled Knoxville Center Mall.

“One of the challenges we’ve certainly seen in Knoxville and nationwide is keeping retail malls viable and trying to work with ownership with West Town Mall to make sure (the mall) remains a viable entity in the city of Knoxville,” MPC Executive Director Gerald Green told city council members at this week’s meeting.

Green wouldn’t confirm whether Sears or its auto center are leaving, but said Simon is considering plans to add residential uses, at least one car dealership, and an entertainment area to West Town Mall. Plans for each proposed change would have to be approved by MPC, Green said.

More: Sears at Knoxville Center Mall to close, along with 71 other stores

Knoxville Center’s owners have also announced plans to convert that mall, formerly known as East Towne Mall, into a mixed-use development, though little has been done toward any such changes.