A Knoxville developer is planning to build a $15 million apartment and retail project on Chattanooga's Southside near the Pilgrim's Pride chicken processing plant.
Developer John Murphy said 139 apartments along with a parking garage with 200 spaces would be constructed at the corner of Broad and West 17th streets.
He said the 1.5-acre site, across West 17th Street from the Pilgrim's plant, will hold lofts in an existing vacant four-story warehouse. A pair of new four- or five-story structures would be built with the parking in the center, Murphy said.
Average monthly rents could come in at about $1,250 to $1,300 a unit, he said.
Asked about the proposed project's location near the chicken plant, Murphy said he has visited the site several times. He said the spot wouldn't be his first pick of downtown locations, but he doesn't foresee a problem.
"We think things are moving that way," Murphy said. "We don't think that thing will be there forever."
The developer is seeking a zoning change for the apartment complex site from manufacturing to commercial next Monday before the Chattanooga-Hamilton County Regional Planning Commission.
The plant has drawn the attention of city officials and planners due to the sometimes pungent odor coming from the factory.
Three years ago, a team of urban planners presented to government officials and developers a hypothetical mixed-used development called "Pilgrim's Plaza" at the chicken plant site.
But Pilgrim's, which employs about 1,300 people at two downtown facilities, said at the time that the planners were counting their chickens before they hatch.
"Pilgrim's has no intention of moving our facility in Chattanooga," a Pilgrim's official said then. "We have been a part of the community for well over 50 years and hope to remain a positive contributor to the economic engine of Chattanooga for years to come."
Pilgrim's two plants also support about 170 rural chicken growers who sell nearly 230,000 birds each day.
Murphy said he plans to buy the proposed apartment site from Chattanoogan Jeff Fillers.
Fillers said the Southside "appears to be a thriving area," but declined further comment.
Just last week, a trio of downtown residential projects seeking incentives won approval from a city panel, including an apartment complex in the Southside.
KORE LLC of Birmingham, Ala., wants to put a 200-unit apartment complex with a swimming pool and courtyard at 1400 Chestnut St.
Also, a Memphis developer is eyeing the renovation of the Maclellan Building downtown into 90 apartments.
The biggest of the three proposed projects is slated for the 700 block of Market in which an Atlanta company would like to raise a 10-story building in a $28 million development. It would hold 125 apartments along with retail, offices and parking. The City Council and Hamilton County Commission must still approve incentives for this project.
Murphy said he wasn't planning at this time to seek financial incentives.
Plans are to start construction on his project in the fall with the apartments opening in about nine months, he said.
Murphy said he thinks Chattanooga has one of the better central business districts among cities in Tennessee.
Contact Mike Pare at mpare@timesfreepress.com or 423-757-6318.