Board members
A reconstituted city Health, Education and Housing Facilities Board on Tuesday approved a tax break for the conversion of hotel units at the Chattanooga Choo Choo into 97 apartments.
Jon Kinsey, Choo Choo general partner, said, "We would not even have considered this project" without the tax abatement program approved earlier by the city and county.
Jim Williamson of the River City Company said there is a crying need for affordable downtown housing, and it is more costly for developers to do projects downtown than elsewhere.
The Choo Choo will continue to pay the property taxes of $32,083 per year on the hotel building that is at the end of 14th Street.
The abated taxes are estimated to be $26,651 per year.
There will be a full abatement on taxes on the $1.8 million in improvements for 12 years, then a four-year phase-in to full taxes. The 12 years applies to rehabbing of buildings.
Mr. Kinsey said, "We are ready to start construction immediately." He said the conversion will take 22 weeks.
At the same time, the exterior of the former train station is being changed along 14th Street to "open it up," he said.
The Comedy Catch will be moving to that site and there will be a new music venue in addition to two new restaurants.
Mr. Kinsey said of 14th Street, "We see it as the entertainment center of the city."
The entire redevelopment is set to be finished by Labor Day, it was stated.
He said 95 of the 97 apartment units will be for low and moderate income residents with a rent level of $771 per month.
There will be a swimming pool and clubhouse.
Access to the apartments will be off Main Street along the new Passenger Street that goes by the Flying Squirrel.
The board had not been able to meet in recent weeks due to the lack of a quorum
Four new members at the session got an orientation from Assistant City Attorney Phil Noblett. Two members were absent. Hicks Armor, the only returnee at the meeting, was chosen as chairman.
Dianna Bullock, a returnee who was not present, will be vice chair.
Dana Perry, a new member will be secretary-treasurer.
Phil Noblett gives orientation