KNOXVILLE, Tennessee — Developers and city leaders broke ground on a new apartment complex, kicking off renovations that will transform the old State Supreme Court building and site that stands in downtown Knoxville.
Groundbreaking on the massive redevelopment project happened Monday. The agreement that cleared the way for construction of an apartment complex at the site and renovations on the historic building was approved back in May.
Currently, the two-acre space across from the Knoxville Convention Center is occupied by the historic court building and a large surface parking lot.
The parking lot will soon be transformed into a 237-unit apartment and retail complex that would include a pool, fitness and wellness center, pet spa, bike shop, specialty spaces, and two levels of parking.
The historic Supreme Court Building next to the apartments will be renovated to take on a more non-traditional and unique role -- the plan is to transform the building into a 'mid-modern experience' with a rooftop bar and apartment rooms below it that could be reserved through a service like Airbnb by residents and visitors.
There'd be five two-bedroom units, 21 units with three bedrooms and one four-bedroom, 3,800-square-foot penthouse. The units would include bathrooms, living rooms and kitchens.
While the use inside the building will be radically different, the historic art deco exterior will be restored and preserved.
"We look at each property as its own story, if you lose the story then you end up looking like anywhere else which is nowhere," developer Rick Dover said.
The Tennessee Supreme Court used to meet in the marble-fronted building, which dates to the 1950s, when visiting Knoxville to hold court and hear cases. In 2005, the state gave the city's Industrial Development Board the opportunity to acquire the site for redevelopment.
The building has been empty more than a decade.
Dover is pledging to restore the marble exterior and install glass and balconies in place of the court building's brick veneer, documents state.
City Council voted back in May on a resolution to work out annual payments in lieu of property taxes, or PILOT, for some 25 years, documents state. Without public assistance on property taxes, the project isn't viable, the developers argue.
Under the agreement, Dover had a year to get going on renovations starting July 1 and three years to finish it.
The city has collected no property taxes on the site. It's projected the lodging plan would create new annual taxes of $124,767 for the city and $107,357 for the county.
The total construction project budget is $76 million.
Dover's other Knoxville projects have included the former Farragut Hotel on Gay Street, now a Hyatt Place hotel, and the old Knoxville High School on East Fifth Avenue, converted into senior living.