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.


PHOTOS: Christmas Parade In South Pittsburg

Cross Plains Police Officer Arrested On Charges Of Sexual Battery By Authority Figure

An investigation by   special agents with the Tennessee Bureau of Investigation has resulted in the arrest of a Robertson County School Resource Officer on charges of sexual battery by an authority figure.                                         At the request of 19 ... (click for more)

Tennessee River Gorge Trust Trail Warriors Make You Want To Take A Hike

Trail warriors of the Tennessee River Gorge Trust make you want to take a hike.  The Tennessee River Gorge Trust staff and volunteers make a huge difference in the Chattanooga community and have been making the outdoor areas around the River Gorge clean and protected for more than 30 years.  They deserve to be recognized and praised for all of the hard work they have ... (click for more)

Roy Exum: Why Our Schools Stink

Cheryl Roddy has spent her lifetime, for the biggest part, as a teacher for the Hamilton County Department of Education and, more specifically, at East Ridge High School. She has loved teaching there for nearly 40 years and is hardly “average;” she has her master's degree in education, was twice East Ridge’s teacher of the year, was the first teacher at East Ridge to reach the first ... (click for more)

Wilson, Hurricanes Pull Out 58-55 Win Against Baylor

From deep in the left corner, East Hamilton guard Vandrele Wilson, a 5-foot-7 junior, let fly with a 3-point shot, came back to the ground and stood concrete-still while watching the basketball hit nothing but net. As soon as the ball left his hand, Wilson was sure it was golden. The clutch 3-pointer gave East Hamilton a 56-55 lead over Baylor with 15 seconds remaining ... (click for more)

Prolific Prep Hammers Hamilton Heights 72-62

Gary Trent Jr. ripped Hamilton Heights for a game-high 36 points on Friday night and helped Prolific Prep Academy (Windsor, Calif.) defeat the Hawks 72-62 in the Marshal County (Ky.) Hoopfest. Trent, who played all 32 minutes, hit 14 of 28 shots, including 3 of 9 3-point tries. He scored 19 in the first half and had 11 each in the second and third periods. Abu Kigab scored ... (click for more)