A South Carolina developer who is purchasing the Bread Factory Lofts on the Southside agreed to set aside five units for "affordable housing" in order to get the approval of a city board for the financing of the purchase.
Only four members of the Health, Education and Housing Facility Board were present, and Lloyd Longnion said he would not give approval unless the developer agreed to the five set-asides.
He abstained, while three others present voted in favor.
The developer then made the concession and the revote was 4-0. There are seven members of the board so four affirmative votes are needed to pass a measure.
Helen Burns Sharp of Accountability for Taxpayer Money had asked that the refinancing not be approved, saying the project had never had any affordable units.
Alfred Smith, attorney for the developer, said that was not a requirement when the project at 1615 Cowart St. was the first applicant under the program he said was meant initially to bring housing back downtown.
The developer said only one unit is now vacant and it would be rented at the maximum affordable level of $858 per month.
He said the next four units that come open will be treated the same way.
Officials said Victor Hogstrum is no longer on the board, but a replacement has not been named.
In addition to Ms. Sharp, several other members of ATM addressed the board.
Franklin McCallie said the development had not paid even the school tax until it recently was required to begin paying 20 percent of taxes as its PILOT (payment in lieu of taxes) winds down. It will be at full taxes in December 2018.
The property was sold earlier by Chattanooga developers to a Nebraska firm and is now being resold. The closing is set for next week.
Without the approval of the city board, that closing would not have been possible, attorney Smith said.