The City Council has approved the first PILOT (payment in lieu of taxes) under the new rules set up for the program by the Berke administration.
The vote was 6-2 in favor of a proposal to bring a $20 million apartment complex to the Southside with units that are 100 percent for those with moderate incomes. Opposed were Chip Henderson and Ken Smith. Larry Grohn was absent. In favor were Carol Berz, Chris Anderson, Yusuf Hakeem, Russell Gilbert, Jerry Mitchell and Moses Freeman.
John Shepherd of Elmington Capital of Nashville said the group is ready to start the Chestnut Flats immediately and have the complex open by the summer of 2018. He said rents would be $613 for a one-bedroom and $728 for a two-bedroom. By contrast, he said a two-bedroom unit at the new apartment complex at Main and Market is $1,400. The property will be reserved for those making less than $36,000 per year.
The group will receive a 16-year tax abatement. It will pay about $60,000 per year on the school tax. The long vacant property across 20th Street from Finley Stadium now pays only $3,800 per year in taxes.
Mr. Shepherd said the group has 5,000 apartment units, including many in Tennessee. He said it builds affordable housing, then manages the complexes.
Its strategy includes relying strongly on federal tax credits.
He said the complex is not Section 8, but does accept public housing vouchers.