Story updated
Story updated at 6:34 p.m. with additional information
The Chattanooga City Council has unanimously approved a 16-year payment-in-lieu-of-tax agreement for a 97-unit apartment conversion at the Chattanooga Choo Choo Hotel.
The vote was 8-0 in favor, Councilman Chris Anderson was absent, although he said earlier Tuesday he supported the measure.
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After some last minute changes the proposed tax break for the Chattanooga Choo Choo Hotel's 97-room apartment conversion, the project appears likely to pass it's first hurdle at the Chattanooga City Council tonight.
City Attorney Wade Hinton told Council members during an agenda session today that he met with River City Company, Choo Choo developer and former Mayor Jon Kinsey, and the Hamilton County Attorney to add some language to the proposed 16-year payment-in-lieu-of-tax agreement.
The changes will make the PILOT not automatically transferable to new owners if the hotel changes hands, requires the developers to submit an annual report on investments and certified rent rolls and gives city and county officials more discretion with clawback provisions if the Choo Choo project doesn't meet its commitments.
The City Council will vote at its 6 p.m. meeting on a measure to give its Health, Education and Housing Facilities Board authority to manage the proposed PILOT. The HEB and the County Commission will still have to approve the project before it is finalized.
Read more in tomorrow's Chattanooga Times Free Press.