Aiming to see their feedback incorporated into the final version, Chattanooga City Council members will wait another week before they vote on issuing a request for a developer and service provider that would manage the conversion of an old motel into about 70 units of permanent supportive housing.
The city purchased the former Airport Inn at 7725 Lee Highway in October 2021 using $2.8 million in federal pandemic relief funds. Mayor Tim Kelly's administration plans to transform the facility into an apartment complex that would include around-the-clock services for residents attempting to leave homelessness.
The council had been scheduled to consider issuing the request for proposals this past week but postponed the vote to more thoroughly review the document. Members met Tuesday afternoon to discuss the request for proposals and now plan to vote on issuing it next week.
"This (request for proposals), you'll notice has a high bar," Kelly's chief of staff, Joda Thongnopnua, told council members. "There is a lot of information that we request in order to make an effective decision, an informed decision."
An estimate completed in April found that converting the hotel into housing could cost about $5.6 million. Kelly's spokeswoman, Kirsten Yates, said in an email Tuesday that the administration anticipates proposals will detail a financing plan that does not require additional city investment for site rehabilitation or renovations.
The city expects developers to share a full funding plan, including potential sources of equity and debt financing, in addition to any affordable housing financing required from local, state or federal sources.
According to a draft version of the request for proposals, the chosen developer could receive a 55-year lease or have the property transferred to them, which could include restrictions on the use of the land.
The selected developer will rehabilitate and operate the building as permanent supportive housing. The selected developer can identify a partner that would provide social services for residents if the developer doesn't plan on providing on-site services itself.
The city is asking respondents to include a service plan that provides one case manager for every 25 people.
The city plans to prohibit residents registered as sex offenders and those who have been convicted of manufacturing methamphetamine on federally-assisted property. Additionally, officials intend to ban residents convicted of certain severe violent felonies that involve the use of aggravated force.
Councilman Chip Henderson, of Lookout Valley, asked staff Tuesday to strengthen wording in the document to guarantee it reflects the commitments the mayor made about the project during a community meeting in October at the Family Justice Center.
The mayor's "contract with the community" included promises to increase enforcement in the area of the motel and that the city would retain the ability to shut down the facility if it becomes dysfunctional.
"I want to make it very clear that the administration stands behind the contract with the community that we have already issued," Thongnopnua said.
Staff File Photo by David Floyd / The city of Chattanooga plans to convert the former Airport Inn, 7725 Lee Highway into 70 units of permanent supportive housing.Council Chairman Darrin Ledford, of East Brainerd, stressed the importance of including clawbacks and appropriate oversight. He suggested the project fall under the review of council's affordable housing committee.
Thongnopnua said the city intends to have a provision in the deed covenants that would allow officials to intervene and shut down the project if it becomes a nuisance to the neighborhood. The standards for how to assess that would likely need to be negotiated in the contract, he said.
Council Vice Chairwoman Raquetta Dotley, of East Lake, asked if the City Council could have an appointee on the evaluation committee. Per procurement rules, the administration said, council members cannot be part of the evaluation committee because the panel is in charge of judging any challenges to the bid process, which could cause a conflict of interest.
The city's chief procurement officer selects the evaluation committee, Yates said, and only city employees are allowed on the panel in a scoring role. Under Kelly's administration, Yates said, the mayor has directed the chief procurement officer to prioritize evaluators who have a balance of subject-matter expertise and familiarity with the topic.
Councilwoman Demetrus Coonrod, of Eastdale, said Tuesday she wants to ensure the evaluation committee offers an impartial assessment of the proposals.
"I don't fully trust that you guys will select somebody ... that can't be biased to the selection and provide honest feedback," she told Thongnopnua.
A California-based organization called Step Up has completed similar supportive housing projects and had a representative at the city's community meeting in October. Kelly visited one of the organization's supportive housing facilities on Vine Street in Hollywood in June, and its CEO, Tod Lipka, has said Step Up does intend to compete for the motel conversion in Chattanooga.
"I feel like it's already skewed in their favor," Coonrod said Tuesday.
The administration is fine with deferring the request by a week to include suggestions from the council, Thongnopnua said, but he noted there is a sense of urgency.
"We do want to see these units open up as quickly as possible, but I don't think a week deferral is any problem at all," Thongnopnua said. "I'd be happy to make those revisions so you have more confidence in the (request for proposals)."
The final contract with the developer, he said, will govern many of the commitments the mayor has made about the project and would be an appropriate stage for additional scrutiny from the council.
"I want to make sure we're not too concerned about the process," he said.
Contact David Floyd at dfloyd@timesfreepress.com or 423-757-6249.