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Income-restricted Mill Town units aimed at combatting displacement in neighborhood

Staff photo by Abby White / The new multi-unit buildings in Mill Town are seen from South Lyerly Street on Feb. 21, 2025. The developer has added some income-restricted units to combat displacement in the community.
Staff photo by Abby White / The new multi-unit buildings in Mill Town are seen from South Lyerly Street on Feb. 21, 2025. The developer has added some income-restricted units to combat displacement in the community. Staff photo by Abby White / The new multi-unit buildings in Mill Town are seen from South Lyerly Street on Feb. 21, 2025. The developer has added some income-restricted units to combat displacement in the community.

Adding a huge new development in one of Chattanooga’s most historically disinvested neighborhoods was always going to have consequences.

New, more expensive condos, townhomes and apartments in the Mill Town neighborhood will naturally make the surrounding area of Oak Grove less affordable, developer Ethan Collier said.

As part of an effort to combat potential displacement, Collier has added some income-restricted units, including around 50 developed in partnership with nonprofit developer Chattanooga Neighborhood Enterprise.

Martina Guilfoil, the enterprise’s president and CEO, said she was drawn to Collier’s proposal for a mixed-income community, rarely built these days, she said.

“How do we protect Oak Grove residents from this development that’s happening, and how can the residents then get involved and identify what they might want for their neighborhood with this development happening?” Guilfoil said by phone. “I thought this is a great opportunity to create a model for equitable development that could be used across the city.”