The City Council on Tuesday night approved a $40 million affordable housing project in Alton Park on first reading. The group is expected to come back later for a PILOT tax abatement for the development.
Evan Holiday of LDG of Louisville, Ky., said it will be a gated community with a clubhouse, fitness center, pool and workhouse facility. It will have 264 units.
He said occupants will be carefully screened "to make sure this is a quiet, safe community."
Mr. Holiday said the firm began studying opportunities in Chattanooga last year, saying there was "a lack of affordable and workforce housing."
He said there were five community meetings about the project.
It is across from the former Velsicol site.
There were several opponents, including one who said, "Apartments do not build communities. Homes build communities."
Another spoke about the project bringing traffic congestion.
An official of TDEC said the project would be at the former Frank Trotter School location, which is not a polluted site.
Councilman Erskine Oglesby called it "an opportunity to create some economic development in Alton Park" and to bring some prosperity to a community that has been left behind.
He said it would help bring in jobs and stores.