The Standard Coosa Thatcher mill, which was damaged by a 2-alarm fire in July, is seen Tuesday, Dec. 6, 2016, in Chattanooga, Tenn. The city will consider an 18-year tax break for the $57.5 million redevelopment of the property into a loft apartment complex.The Hamilton County Commission has given the green light to an 18-year tax break for the redevelopment of the Standard-Coosa-Thatcher textile mill into an affordable live-work-play complex.
The $57.5 million Standard Coosa Artists Lofts project, nurtured by developer Tim Boyle of St. Louis-based City Property Co. over the past two years, calls for transforming the 100-year-old site into 170 rental spaces for artists and other creative professionals while preserving its industrial architecture.
The textile mill, located at 1800 S. Watkins St., stands within an area of industrial blight just west of Missionary Ridge.
On Wednesday, commissioners voted 9-0 in favor of the tax break agreement despite expressing reservations during Boyle’s presentation to them last week.
“They did a good job of asking questions during the presentation and in the following week,” Boyle said after the meeting. “I think they understand the substantial economic development benefits of the project in addition to the affordable housing it provides.”
The payment-in-lieu-of-taxes agreement, or PILOT, freezes the site’s property tax at its current, undeveloped value for 14 years. Afterward, full taxation will be phased in over a period of four years. All school taxes normally due will be paid during the entire PILOT period.
Last week, Commissioner Joe Graham said he worried the agreement would signal to developers nationwide that apartment tax breaks “are easy to get in our community.” However, he seconded a motion by Commissioner Jim Fields to approve the agreement.
Boyle assured commissioners there was “no way in God’s green Earth” his company could clean up and overhaul the properly, offer rent-restricted apartments and pay full taxation.
“The community wants this project,” Commissioner Warren Mackey said last week. “It’s a good usage of PILOT money.”
With a tax break in hand, the developer promises to only rent to tenants whose income is no more than 60 percent of the area’s average median income during the PILOT period. For a family of four in Hamilton County, the average median income is $61,300, according to 2016 federal housing figures. At 60 percent, that number is $37,720.
A one-bedroom apartment would rent for $615, according to those figures, Boyle said. Two- and three-bedroom units would rent for $732 and $839, respectively.
Boyle has said he hopes the project will break ground early next year.
Contact staff writer Paul Leach at 423-757-6481 or pleach@timesfreepress.com. Follow him on Twitter @pleach_tfp.