UTC will need to put up about 50 students in a hotel to start the fall semester Monday because there's no room in campus housing, though more options are sprouting up nearby.
Dr. Steve Angle, chancellor at the University of Tennessee at Chattanooga, said at the official opening of the 691-bed Douglas Heights apartments just off M.L. King Boulevard that there's room for the private complex.
"There certainly is capacity in the market here," he said.
UTC's headcount is expected to be up by about 200 students or so this fall from a year ago, according to the university. Last year's total of 11,388 was a dip in enrollment from prior years as the university has been one of the fastest growing in Tennessee.
Chris Curtis, the Chattanooga developer behind the $41 million, seven-story Douglas Heights apartments, said the complex has more than 500 residents now and he expects it to fill up.
"We're filling a void," said Curtis about the Douglas and 10th streets facility that's housing both students and non-students.
He said his Riverside Development group spends time everyday trying to figure out ways to connect Douglas Heights to the closeby UTC campus.
Chattanooga Mayor Andy Berke said he wants the city to attract students who then stay after they graduate.
"That talent pipeline is essential to our growth," he said. "We need to make sure we have talent, and UTC is a big part of that."
Patrick Palmer, a 20-year-old UTC junior from Memphis, checked into Douglas Heights on Friday afternoon, saying he liked the close proximity of the apartments to the campus.
"It's nice to be around here," he said. "I know a lot of people [in the complex.]"
In addition to Douglas Heights, Walk2Campus recently raised a 64-unit apartment project at 500 Lindsay St. near UTC. Also, at Vine and Houston, a developer put up another 68 units.
Additionally, a New Hampshire developer has plans to redevelop a 2.1-acre site at M.L. King and University Street to hold a 481-bed complex, according to the company's website and state documents.
Still, UTC already is building new housing to meet demand as freshmen are required to live on campus, Angle said. An $80 million project to add 600 beds is underway at Vine and Houston streets, along with a 700-space garage.
Angle said he expects that the 50 students initially living in hotel rooms will soon move into university housing as enrollment shakes out. But, he said, it's important for UTC students to have affordable housing options close to campus.
Student success at UTC rises the more they're involved at the school, the chancellor said.
"Connected students are successful students, and they graduate," he said.
Curtis also said he's "seeing a turn" in the M.L. King neighborhood as more development takes place on the historic artery.
"The street is alive," he said. "It's not an overnight transformation. We're going to bring downtown into this district."
Contact Mike Pare at mpare@timesfreepress.com or 423-757-6318.