Construction is underway on a North Shore development that is the first participant in a revamped Chattanooga tax incentive program.
The 278-unit complex at 702 Manufacturers Road is being developed by the Atlanta-based Atlantic Companies. In return for providing affordable housing, the project will receive a tax break.
“Because if you work in Chattanooga,” Mayor Tim Kelly said during a groundbreaking ceremony for the development Tuesday, “you ought to be able to live in Chattanooga.”
For at least 15 years, the property will offer 42 affordable units, equal to 15% of its total housing stock. Over the course of the tax incentive term, the title of the property is transferred to the city’s Health, Educational and Housing Facility Board as collateral. The North Shore development will receive a nearly 70% property tax break during the lifetime of the incentive, reducing the development’s annual tax bill from about $758,000 to about $342,000.