The St. Louis developer of the planned Standard Coosa Lofts in Ridgedale said it will be a $57 million project with housing at affordable rates.
Tim Boyle told members of the County Commission that it will have 170 units with the most-expensive - three bedrooms - going for $839 per month.
The project is for artisans, but he said that word has a wide definition. He said it could be creative people who have regular jobs, then "get their creative juices flowing" after hours.
It is at the former Standard Coosa Thatcher cotton mill on Watkins Street that has been vacant for some 20 years.
Mr. Boyle said a 16,000-square-foot portion was lost in a fire last summer started by an arsonist.
But he said some 300,000 square feet remain in five industrial buildings.
The developer said he will bring an expert team to Chattanooga to carry out the renovation, that will include adding almost 300 industrial-style windows.
The 60 one-bedroom units will rent for $615 per month, and the 80 two-bedroom units will be $732 per month.
Mr. Boyle said there will be courtyards in the center of the complex.
He is seeking an 18-year tax abatement PILOT (payment in lieu of taxes) from the city and county.
Mr. Boyle said the property has not paid taxes in over four years. He said it will begin paying $80,000 per year to the schools.
There will be full abatement otherwise for 14 years, then a four-year step down to full payment of taxes.
Mr. Boyle has been working on the project for some four years.
The housing PILOTs were only recently extended to sections of the city other than downtown.
City Attorney Wade Hinton said Tuesday that in the future that requests for housing PILOTs will first go to the City Council.
Then they will be taken up by the city's Health, Education and Housing Facilities board.