The makeover of Chattanooga's East Main Street corridor is taking another step with site prep work starting on a proposed $30 million retail and housing development near Montague Park.
The project at 1040 E. Main St. would hold from 50 to 60 townhomes or condominiums as well as 20,000-square-feet of retail space, said Chattanooga developer Kevin Boehm.
"That whole district is changing," Boehm said about the East Main area from Central Avenue to Dodds Avenue. "It feels like that's the next area Chattanooga will see a lot of growth in."
Work has begun taking down part of existing buildings on the site which had held Raines Brothers Inc. for many years at East Main and Fillmore Street.
Boehm said he has commitments for 75% of the commercial space.
But, he said, the coronavirus outbreak has slowed the pace of work.
"We're still moving forward cautiously," the developer said. He said work is ongoing related to engineering and architecture so groundbreaking can take place later.
Boehm said there's not a lot of retail space opening up in the area, even though it's seeing a variety of new residential and office projects.
"We feel like there's a good opportunity there," he said.
Last month, Chattanooga developer Ethan Collier unveiled the biggest housing and commercial project to go up in the East Main area in decades on about 30 acres around the former Standard-Coosa-Thatcher textile site.
Called Mill Town, the $120 million development would hold about 330 residential units along with apartments and commercial space, said Collier, president of Collier Construction.
"It will be the largest new neighborhood from the [Tennessee] river to the ridge," he said.
Meanwhile, a Nashville developer has begun work on $40 million in new residential and retail space at 1601 Holtzclaw Ave., that formerly held a Rock-Tenn facility, said Michael Kenner.
Plans are to put up for sale up to 120 residential units and 30,000 square feet of retail space, he said.
Also, Chattanooga businessman Sean Compton has proposed a new mixed-use project off of South Holtzclaw Avenue in a potential $20 million development.
Compton wants to reuse the longtime Lucey Boiler industrial site and turn it into a location for new townhomes, retail-and-event space and possibly a boutique hotel.
Boehm said he likes his proposed development's proximity to Montague Park. He said plans also call for a large open space between the retail and housing pieces.
The price points for the residences will be "affordable, probably middle-income," Boehm said.
"We see that area as attractive to a younger demographic," he said.
The site also will hold 115 parking spaces, the developer said.
Contact Mike Pare at mpare@timesfreepress.com. Follow him on Twitter @MikePareTFP.