City Council approves tax-break program for downtown developers

City Council approves tax-break program for downtown developers

August 5th, 2014 by Joy Lukachick Smith in Local - Breaking News

Chattanooga City Council voted 8-1 to approve a payment-in-lieu-of-taxes, or PILOT, agreement for developers building housing downtown.

This new PILOT agreement proposed by Chattanooga Mayor Andy Berke's staff allows developers, who want to build downtown, to negotiate with River City Co. for the ten-year tax break.

The deal they reach would then go before the Health, Educational and Housing Facility Board, the City Council and the County Commission for final approval.

The new agreement is different from a previous PILOT agreement with River City Co., because developers will be required to rent 20 percent of their units at rates affordable for people who make less than 80 percent of the area median income, or around $31,000.

Councilman Larry Grohn cast the only dissenting vote.