The County Commission on Wednesday discussed a PILOT (Payment in Lieu of Taxes) tax abatement for the 47-unit Mai Bell II at 1715 Union Ave. The vote will be next Wednesday.

Commissioner Tim Boyd said the county cannot continue to give developers PILOTs with a possible property tax increase looming. He said, "I'm looking at the aggregate amount of tax breaks that this commission has approved over the years. Sometimes the county mayor is going to ask for a tax increase."

Noting that the City Council already approved it, he said that would not affect the county vote. He said if the county did not go along, it would raise rent costs $30 per month, which he said should not be a large issue for most renters.

Martina Guilfoil, who heads Chattanooga Neighborhood Enterprise which is heading up the project, said, "Many people cannot afford an extra $30."

Commissioner Warren Mackey spoke in favor, saying with rapidly rising housing costs in Hamilton County that affordable housing is getting harder to find. He said, "All of our improvements don't have to be for the big boys."  

Commissioner David Sharpe said, "$30 for a lot of folks in my district is the difference between having a place to lay your head at night or being on the streets."

County Mayor Jim Coppinger defended a number of the PILOTs that have been approved. He said they pay some taxes now and more in the future. "Nobody gets a free ride."  

The first project named to honor Mai Bell Hurley, who served on the City Council and in a host of civic roles, was built nearby four years ago.

Ms. Guilfoil said it only has a two percent vacancy rate.

CNE plans to invest $5.4 million in the new project that will include six buildings.

Ms. Guilfoil said CNE is non-profit, but is required to pay property taxes so it is seeking a 10-year PILOT (Payment in Lieu of Taxes) for the project.

She said the school taxes would continue to be paid as well as the water quality fee.

Currently, Mai Bell I pays $36,477 in city taxes and $42,612 in county taxes.

The PILOT would freeze the property taxes on the new venture for 10 years at the pre-development level.

The project is aimed at providing housing at affordable rates, it was stated.

There will be 26 units under PILOT restrictions and nine units under HOME restrictions. Twelve units will be at market rate with rents of $1,250.

Other rents will be as low as $795 per month and will be income based.

CNE has also acquired property on Bailey Avenue near Big Brothers, Big Sisters. It has torn down several structures there and is studying what to do with the property. 

Commissioner Boyd said he sent this email to Ms. Guilfoil: