Knoxville City Council Votes to Boost Hotel Tax and Advance Affordable Housing Initiatives

Knoxville’s City Council Takes Big Steps for the Future

Hey, Knoxville! Exciting things are happening in our city, and you’ll want to pay attention. During a recent meeting of the Knoxville City Council, a vote was passed on the first reading to increase the hotel-motel occupancy tax from 3% to 4%. Why, you ask? Well, the city has some plans to give our tired coliseum a much-needed facelift, among other repairs.

A Bright Future for the Coliseum

Mayor Indya Kincannon chimed in during the discussion, describing the coliseum as “beautiful but deteriorating.” It’s great to know we have a city leader who cares about our beautiful spaces! The increase in the tax is expected to generate around $2 million in new funds for the city. This extra revenue will be a game-changer for revitalizing the coliseum, greatly supported by community organizations like the Knoxville Ice Bears and the Downtown Alliance.

The hotel-motel tax was initially intended to “sunset” once the convention center’s debt was paid off. With an average cost of about $117 per night for hotel stays in our lovely city, this small bump in the tax means tourists will be helping fund the local gems we cherish.

Affordable Housing Moves Forward

But that’s not all the council discussed! They also took an admirable step toward affordable housing, voting to allocate about $2.3 million from the federal American Rescue Plan Act. This funding will go towards buying and developing affordable housing in downtown Knoxville. Imagine two new commercial properties transformed into affordable housing units with rents based on income!

Councilman Andrew Roberto expressed his enthusiasm for this initiative, urging private developers to also consider similar projects. It’s heartwarming to see the council focused on ensuring everyone has a place to call home.

Community Concerns Over Zoning Changes

In response, Council members Laura Rider and others decided to postpone the discussion for two weeks. They aimed to set up a neighborhood meeting to ensure everyone affected is on the same page. Communication and community input? Now that’s what we love to see!

Another Housing Development on the Horizon

$1.4 million for a new housing development in Inskip. Developer John Huber from Hopeful Housing shared that this project will provide 48 affordable housing units, with 60% available for low-income residents. With completion expected by late 2026, it’s evident that more affordable options are coming soon.

Postponements, but Hope for Change

Keep an Eye Out!