City Considering Allowing Housing Board To Give Tax Breaks To Encourage Downtown Housing

Saturday, August 2, 2014

The City Council is set to consider a resolution on Tuesday that would give the city's Health, Educational Housing Facility Board authority to approve tax breaks to promote downtown housing.

The resolution would authorize the mayor to enter into agreements for payments in lieu of ad valorem taxes (PILOTs).

The incentive program would expire after 10 years.

The resolution says, "WHEREAS, the City wishes to encourage the development of housing in the downtown Chattanooga area; and

"WHEREAS, the City has determined that PILOTS from developers of downtown housing would be in furtherance of the HEB’s respective public purposes as set forth within Part 3 of Chapter 101 of Title 48 of the Tennessee Code Annotated; and

"WHEREAS, the City wishes to set forth the criteria that must be met by developers of downtown housing facilities in order for them to qualify for PILOT treatment at various levels; and

"WHEREAS, the City also would like to encourage the development of single family housing in the downtown Chattanooga area; and

"WHEREAS, a Program for Downtown Housing Development adopted by the City of Chattanooga and Hamilton County in 2002 expired by its terms in January of 2012;

"NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CHATTANOOGA,TENNESSEE:

"1. That we do hereby find that the development of all types of downtown housing is
in the best interest of the City of Chattanooga and Hamilton County, and that PILOTS derived
therefrom would be in furtherance of the respective public purposes of each of the HEB; and,
2. That, having made such findings, we do hereby delegate to the HEB the authority
to negotiate and accept PILOTS from developers of housing in downtown Chattanooga pursuant
to the terms of the attached Program for Downtown Housing Development (the “Program”); and,
3. That the Mayor of the City of Chattanooga is hereby authorized to enter into
Agreements for Payments In Lieu Of Ad Valorem Taxes that meet the criteria of the Program;
and,
4. That this Resolution shall be effective for only ten (10) years from its passage, at
which time it shall terminate and be of no further force or effect, unless extended by action of this Council."

The program is for projects for low and/or moderate income individuals or those who are handicapped or elderly.

It includes new construction or rehab of older property.

The value of the new construction or rehab must be at least 60 percent of the original value.

The incentive is for 10 years, or an additional two years for a rehab, and two more years if an historic property.

Qualifying projects can also receive a PILOT phase-in period of four years of incentives. The rate is 20 percent the first year, 40 percent the second year, 60 percent the third year, and 80 percent the fourth year.

Applications for the incentives will go through the private River City Company, which will charge a $500 application fee for administration and processing.

River City officials will monitor whether builders are following terms of the PILOT.

The Health, Educational Housing Facility Board will hold title to the property during the incentive period.

To read the resolution, click here.


Couple Ganged After Arranging To Sell PlayStations Via Letgo App

Two men and a woman have been charged in an incident in which a couple said they were robbed, ganged and threatened with a gun after meeting to sell PS3 and PS4 PlayStations for $200. The couple said the deal was set up through the app Letgo that is used for selling items to individuals. They said it was arranged that they meet with the potential buyer, Charley Daniel, on ... (click for more)

Ooltewah Woman Charged With Stealing Items From Cars, Firing Shots At Homeowner Who Confronted Her

A 27-year-old Ooltewah woman has been charged with stealing items from cars on Maplewood Drive, then firing two shots at a homeowner who confronted her. Morgan Lyndsey Shoemaker, of 5204 Village Garden Dr., Ooltewah, is charged with attempted first-degree murder, reckless endangerment, four counts of burglary, two counts of theft of property and possession of a firearm during ... (click for more)

A Light Rain Began To Fall - And Response (2)

Around noon Friday, Jan. 20, 2017, Donald J. Trump was sworn in as the 45th President of the most powerful nation on Earth after a long and sometimes bitter campaign where 17 GOP candidates of his own party and two of the opposing party competed for the honor.   Thousands rejoiced in the Washington D.C. streets while policemen who had come along with national guardsmen pushed ... (click for more)

Roy Exum: A Lady Remembers Rex

Kevin Roden sits on the City Council in Denton, Texas (think the Dallas-Fort Worth airport area in the northeastern part of the state) and he is gearing up to run for a third term this spring. He’s already got his website up and, while the election isn’t until April, he writes on his blog every now and then. Last month he let his wife take a turn at it, which brings us to yesterday’s ... (click for more)

Tullahoma Nips East Hamilton For Central Mat Title

The annual Central Invitational wrestling tournament was cancelled two weeks ago by the threat of inclement weather, but they were able to get it in on Saturday and it was a battle to the wire for the team championship. Luke Champion was the individual winner at 285 pounds and it was his victory that lifted the Tullahoma Wildcats to the team title as they finished the day-long ... (click for more)

Arts & Sciences Shows Improvement In Win Over Silverdale Baptist

When the Arts & Sciences and Silverdale Baptist boys’ basketball teams met for the first time this season, the Patriots fought to pull out a 10-point victory in the District 5-A game. For Friday’s rematch, CSAS wanted to prove that it had improved since that Nov. 29 matchup, and it only took one quarter for the Patriots to do just that. Coach Mark Dragoo’s ... (click for more)