First project helped by Chattanooga affordable housing PILOT program breaks ground
The groundbreaking of 702 Manufacturers Road.
CHATTANOOGA, Tenn. (WDEF)- For many who work in Chattanooga, finding housing can be a challenge.
The city approved a new program last year that looks to put a dent in that issue.
That program approved last year was the affordable housing payment in lieu of taxes, or PILOT program.
This gives developers tax incentives in exchange for reserving 15 percent of their units for essential workers such as first responders, teachers, and nurses.
Tuesday, that program broke ground on the Chattanooga northshore.
702 Manufacturers Road is set to be Chattanooga’s newest neighborhood.
Once an industrial site, 278 new luxury housing units will be built on the north banks of the Tennessee River, both apartments and townhouses.
42 of those will be saved for essential workers who earn as little as 45-thousand dollars.
Chattanooga Mayor Tim Kelly said, “We worked really hard to give police and firefighters raises last year, but again these affordable housing policies are big. Housing is the largest part of most anybody’s budget and expanding these affordable housing policies are going to make it that much more attractive for them to live in Chattanooga.”
The majority of this site is barren from its past as an industrial site
There are three storage tanks are still prominent on the property that developers say they plan to tear down and build townhomes in its place.
Mayor Kelly said, “The city is in transition. This was a big industrial area and as these really attractive spots convert to residential, we’re seeing the entire neighborhood transformed.”
The project is being headed up by the Atlantic Companies, who say that the city’s involvement was necessary for them to take on this project.
Developer Frank Reese said, “Had it not been for the affordable housing program and the partnership at the city of Chattanooga we would not be celebrating this project today.”
The city is also working with Norfolk Southern, who owns railroad lines adjacent to the property, to make traffic improvements on Manufacturers Road.
Mayor Kelly says that this relationship is important as the city looks to address other conflict areas with the railroad company such as the train crossing at Hamill Road in Hixson.
He said, “They own a lot of the right away access around here and they don’t have to sell it or move it. But they’ve been great about seeing and doing what’s best for the city and the residents of Chattanooga.”
He says that he expects this project to be first of several to take advantage of the PILOT program.
Mayor Kelly said, “We’ve seen an average rents come down. The average transaction prices come down, so we now have the moment of moving in the right direction.”
The project is expected to be completed in late 2027.
