Exciting New Affordable Housing Coming to Downtown Knoxville!
Knoxville is buzzing with the announcement of a new apartment building set to change the game’s landscape in the heart of our city. Get ready, because City Summit, a five-story, 89-unit apartment complex, is on the way to the West Vine Avenue area, and it’s going to make quite an impression!
The Project Details
Now, this isn’t just any apartment building; it’s more than meets the eye. The developer, Joe Petre, who works with LawlerWood, has proposed this ambitious $25.4 million project to be located at 516 W. Vine Ave. The project includes nine designated workforce housing units. These will be especially beneficial for the many service industry workers who struggle with finding affordable housing close to their jobs downtown.
The Knoxville City Council is gearing up to consider the benefits of this exciting project during their upcoming meeting on October 15th. At this meeting, they will weigh in on Joe Petre’s request for a Payment in Lieu of Taxes (PILOT). These arrangements are key for developers as they help ease the financial burden of getting such projects off the ground.
Why It Matters
For those not in the loop, the PILOT program means Petre and his team would make an annual payment of $21,708.58 to the city, which reflects the current tax value. This is a lot less than the typical property taxes that would increase once the new development is completed. The intent behind this is to encourage developers to invest in parts of the city that could really use some TLC.
A Nudge in the Right Direction
In December 2021, Petre acquired the property for about $1.5 million, and since then, he’s been busy planning. Initially, there were some design bumps in the road when the Knoxville-Knox County Planning Design Review Board suggested that the original cement exterior was too stark for the neighborhood’s feel. In response, Petre has thoughtfully redesigned City Summit to feature brick, generous large windows, and a pop of red that aligns more harmoniously with the surrounding architecture. The result? A lovely L-shaped building that echoes the charm of nearby townhomes and the historic church.
Planning for the Future
Knoxville officials are also interested in how City Summit will interact with local amenities. The building aims to improve accessibility to Knoxville Area Transit stops, create ground-floor retail opportunities, and broaden the availability of housing options. Those nine workforce housing units specifically will be reserved for individuals earning 80% of the area’s median income for a span of nine years.
Supporters of the PILOT contend that this type of tax assistance doesn’t result in a loss for the city or county. As the project progresses, local governments would still receive the tax revenue from the existing vacant lot while waiting for the new tax value to kick in once the PILOT expires. Once that period is up, the owner will transition back to paying the standard property taxes.
Join the Conversation
If you’re intrigued and want to stay in the loop about this new development, mark your calendars! The Knoxville City Council meeting is set for 6 p.m. on October 15th. It’ll be held in the large assembly room of the City-County Building located at 400 Main St.. This is more than just a meeting; it’s a chance for community members to engage in the future of our downtown landscape.
City Summit represents a significant stride towards affordable housing solutions in Knoxville and everyone is watching closely to see how it unfolds. We’ll be keeping our fingers crossed for a positive outcome!
