An official of an investor group planning $9 million in improvements at run-down Patten Towers said a 25-year PILOT tax abatement is essential for the project to go forward.
The City Council is asked to vote on the tax break on Dec. 18. The County Commission will be asked to okay a similar resolution.
John Shepard of Nashville-based Elmington said current property taxes at the site at 11th and Market are $146,668, which is the school portion. He said with the improvements that will go up to $181,368 per year.
He said under the lengthy PILOT that the city and county would forfeit a total of about $2.7 million total.
Mr. Shepard said frequent calls to the Patten Towers is costing the city fire department $250,000 per year. He said the update will make the fire suppression and detection system much better.
He said there are a number of mechanical improvements to be made, and he said some of the elevator parts date to the opening of the Hotel Patten in 1908.
Mr. Shepard said the current residents at the facility, which is now 95 percent occupied, will be retained. He said work will take place on a couple of floors at a time. He said if any residents have to temporarily move out of the building they can go to Chestnut Flats, which is also being developed by the same group.
He said it is planned to reopen Bingo's Market and expand it. He said it will offer Patten and nearby residents and workers a food option not now available.
Elmington will be in a 50/50 deal with Belveron, of California, which paid $14.5 million for the property that is assessed at about half that amount.
The Patten Towers is currently on the HUD distress list, and the aim will be to remove it. HUD had to approve the sale.