The Chattanooga Housing Authority is taking over assets of the Westside Development Corporation, which is shutting down due to financial difficulties.
Matt Powell, CHA director, said the agency may eventually move all of its operations to the site that includes a strip center as well as the James A. Henry School property.
The CHA now has its main offices on W. 9th Street, and it has five other locations.
CHA will be taking over the 10,000 square foot strip center, which includes a Dollar General store, laundry and police precinct. Mr. Powell said about 8,000 square feet of the center remain unfinished.
He said other Westside assets include the former James A. Henry School and the Memorial Wellness Center.
Mr. Powell said the CHA hopes to continue the programs and grants of the Westside group and expand them to other areas served by the CHA. They would be administered under a non-profit subsidiary of the CHA.
"We are quite excited about the possibilities for consolidating our operations and also for continuing and expanding these health, education and job training programs."
The CHA is assuming the liabilities of the Westside group - listed at under $250,000.
Judge Walter Williams, Westside board chairman, made a presentation to the CHA board on Tuesday morning.
Officials said Westside director Daphne Sloan will be leaving Feb. 15 to take a new position in North Carolina.
The CHA board in February 2004 had approved acquisition of the Grove Street Center from WCDC to prevent bankruptcy foreclosure and preserve services to the College Hill community. An LLC was established to hold title to this center.
In mid-November, the WCDC Board approached CHA to acquire all the assets of WCDC, including the James A. Henry Resource Center and their 501(c)(3) status, in return for paying off all of WCDC’s liabilities.
CHA officials said, "This is a means for CHA to establish a 501(c)(3). The intent is to use the WCDC model to create a “Family Investment Center” for public housing residents throughout the city to provide job development, self-sufficiency and education. Also, with approval from the CHA Board and HUD, we anticipate utilizing the James A. Henry Resource Center and the Grove Street Center to house all CHA staff and provide program activities. We could then sell our current Central Office and the Holtzclaw facility to fund the purchase and necessary renovation."