The County Commission on Wednesday approved a 25-year PILOT tax break for investors in a $9 million redo of the rundown Patten Towers.
The only no vote was by Commissioner Tim Boyd, who said "the numbers don't add up" that were provided by the Nashville-based Elmington development group.
He also said the group had used "bully tactics" in saying they would not fix up the property without the PILOT.
Elmington had asked for the issuance of $25 million in multifamily housing revenue bonds in addition to a 25-year PILOT tax break.
The City Council gave its approval earlier.
The proceeds of the bonds would be loaned to Patten Affordable Partners LP for the acquisition and updating of the one-time Hotel Patten.
The facility will continue to serve low- and moderate-income residents.
John Shepard of Nashville-based Elmington said current property taxes at the site 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 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.