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;


"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;
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.

Latest Hamilton County Jail Booking Report

Here is the latest jail booking report from Hamilton County: ABERCROMBIE, KIMBERLY M  4114 10TH AVE CHATTANOOGA, 37407  Age at Arrest: 41 years old Arresting Agency: Hamilton County FUGITIVE (CATOOSA COUNTY GA) --- ANDERSON, BRIAN CHRISTOPHER  299 BRELAND STREET CHATTANOOGA, 37415  Age at Arrest: 26 years old Arresting Agency: East Ridge ... (click for more)

Upcoming City Council Agenda For Tuesday

Here is the upcoming City Council agenda for Tuesday: I. Call to Order. II. Pledge of Allegiance/Invocation (Councilman Freeman). III. Minute Approval. IV. Special Presentation. “2015 World AIDS Day” By Council for HIV/AIDS Care and Prevention V. Ordinances – Final Reading: PLANNING a. 2015-124 Belle Investment Company and BYD Cowart, GP (Lift Condition). ... (click for more)

Lung Cancer, The Deadliest Cancer In The United States

This time of year, I remember to give thanks for my faith, my family and friends and my health. Recently, I learned that lung cancer is the deadliest form of cancer in the United States; in fact, more Americans die each year from lung cancer than any other type of cancer. One in 13 men and one in 16 women will develop the disease in their lifetime. It’s important to learn about ... (click for more)

Roy Exum: We Can’t ‘Ban The Box’

I know a man who has over 20 former convicts from federal prisons who either work for him or who have retired with their dignity, pride, and self-worth restored. Better yet, I know some of them, men who have done “hard time” in prisons so wretched none of us would dare to go. So on the surface I applaud City Councilman Yusef Hakeem for seeing ways to get formerly incarcerated men ... (click for more)

Red Bank Comeback Trips Hixson In Vandergriff Duals

The last time Red Bank's wrestling Lions faced the Hixson Wildcats in the Hixson gym, Hixson won a close match to earn a spot in the State Duals. These same two teams squared off at Hixson Saturday afternoon in the championship match of the Vandergriff Duals, but the results were different as the Lions rallied for a 34-31 win. Red Bank had won its pool at Hixson Middle ... (click for more)

UTC Defeats Fordham, 50-20

Senior quarterback Jacob Huesman threw for 211 yards and three touchdowns and ran for another 154 yards to lead UTC to a 50-20 victory against visiting Fordham Saturday at Finley Stadium in a FCS first round playoff game. The Mocs played a near flawless first half, scored on four straight possessions to lead 31-0 at intermission. First half highlights ... (click for more)