KNOXVILLE, Tenn. — The Knoxville City Council will meet on Tuesday to discuss and vote on a list of proposals that several different topics.
One proposal would give the Knoxville Community Development Corporation around $6 million to pay for three projects to improve the space surrounding the city's new downtown stadium.
Another could result in a 10-year Payment In Lieu Of Taxes agreement between the city and developers as they build a new apartment building near the Henley Bridge, which promises to change the city's skyline. The city could also increase its hotel and motel tax rate by 1% to generate revenue and pay for tourism-related projects.
More information about some of the most significant proposals on the city council's agenda is available below.
After developers spent months seeking the Knoxville-Knox County Planning Commission's approval for the Hill and Locust apartment building project, they are now asking city leaders to approve a PILOT agreement.
These kinds of agreements effectively freeze property tax rates for a set period of time, obligating developers to fulfill specific requirements in exchange for a tailored tax rate. They are a common tool used by leaders across Tennessee to attract developers.
According to documents related to the proposed agreement, developers plan to invest $135.4 million into the new project. It would result in a new downtown apartment building near the Henley Bridge with retail space near Hill Avenue and Locust Street.
The documents said the project would "consist of 290 Market rate Luxury Apartments." Currently, the location is a vacant lot.
Documents also showed 30 apartments would be "workforce housing units," if the agreement is approved, and the building would have a parking garage with around 325 spaces.
Without the PILOT agreement, the documents said leaders did not expect developers to include any workforce housing units. Assuming the agreement is approved, they also said the market rate apartments are estimated to have a $2,945 monthly rent starting in 2027. The affordable housing apartments are expected to have $1,341 monthly rents.
Construction on the apartment building is expected to start in the second quarter of 2025 and take up to 3 years to complete. The agreement would be for 10 years starting once construction is complete.
The agreement would freeze payments to the city at $17,326 and $12,492 to the county annually.
Knoxville City Council will consider a proposal approving a total of around $6 million for three different projects. The city said all three projects had already been included in the budget and would be given to KCDC so it could oversee them.
The Old City Streetscapes project would get around $2.2 million, the Willow Avenue Streetscapes project would get around $800,000 and the Stadium Public Space project would get around $3 million.
The city said KCDC had already contracted with a general contractor for public infrastructure throughout the Old City and around the new Covenant Health Park stadium. KCDC would be responsible for planning and redeveloping the area.
After a study of downtown Knoxville's parking, leaders will consider a formal proposal to implement planned changes to its parking policies. The proposals largely keep the city's free nightly and weekend parking system intact.
However, the proposal would increase the penalties for most parking violations to $25. Parking in a space reserved for people with disabilities without proper permits could result in a fine of $50 if the proposal passes. Parking in a fire lane or by a fire hydrant could also land drivers with fines of $35, and parking in front of a ramp or cut curb meant to help people with disabilities could also result in a $50 fine.
The council could also implement new technology across the city, designed to "provide significant efficiencies for staff, reduce fees from bank charges for processing coins collected through meters and provide a responsive system for parkers to manage their parking without being immediately next to their vehicle."
The proposal faces a vote on the first reading on Tuesday.
A proposal to increase Knoxville's hotel and motel tax rate by 1% passed on the first reading during the last city council meeting. Now, it's back for a vote on the second reading. If it passes again, the proposal can go into effect.
The proposal would set the rate at 4%, which leaders estimate would generate around $2.2 million in revenue for the city. That money could be used to pay down debt related to the Knoxville Civic Coliseum and Auditorium.
However, the proposal would also allow money collected through the tax to be spent on tourism-related projects and expenses. Leaders said the money could be used to support infrastructure mostly used by tourists, such as World's Fair Park or the convention center.