A proposal to build six individual single-family homes on six tenths of an acre in St. Elmo won an early victory Monday when planners endorsed the zoning change despite some neighborhood objections.
ALC Holdings, a Chattanooga development firm headed by Paul Teruya, wants to develop a site at the corner of Old Mountain Road and West 39th Street with six high-end homes which would face Pennsylvania Avenue.
Two years ago, there was similar uproar over efforts to build a four-story mixed-use building near the site in the trendy, south Chattanooga neighborhood. Developers won that fight, and the property in question was part of an urban, mixed-use development rezoning.
The property's current zoning would allow the construction of multi- family duplex units.
Mike Price, local engineer and spokesman for the current rezoning effor, said ALC Holdings could move seven or eight families into rental units on the property right now.
He said the site's developers want instead to build 1,800- to- 2,300-square-foot homes ranging from $250,000 to $350,000. The homes will sit on narrow, zero-line lots, similar to homes in the Jefferson Heights neighborhood in the Southside neighborhood.
"We think this is a far better plan going forward than what could be done otherwise based on the current zoning," Price said.
But Tim McDonald said the small lots Teruya proposes don't fit in with the rest of St. Elmo.
"And I'm concerned that sets a poor precedent for the community," he said.
McDonald had concerns about traffic as well, saying the summer busy season for the Incline Railway and Rock City already puts a strain on local St. Elmo roads.
Mark Przybysz said he attended a neighborhood meeting hosted by ALC Holdings to discuss issues surrounding the six-home proposal, and felt he was given an ultimatum: get on board or get shabby rentals.
"They said, 'We're either going to put some ugly duplexes up, or you guys can go along with this plan,'" Przybysz said.
Megan Spooner said she lives in Chickamauga, but commutes through St. Elmo daily, and fears the homes Teruya wants to build are too exclusive for the neighborhood.
"I just want to remind you that this is a very diverse neighborhood that is losing its diversity," she said.
But Price countered that single-family, detached homes fit better with St. Elmo than duplexes, and that it was not the builder's intentions to issue an ultimatum to neighbors.
Planners voted to recommend the property be rezoned for zero-lot-line, single-family home construction. The Chattanooga City Council will have the final say next month.
Contact staff writer Alex Green at agreen@timesfreepress.com or 423-757-6480.