More good news (see Editors note at the end for the bad news) for those seeking a downtown residence. Chattanooga City Council last week approved a 12-year tax abatement for developers who will invest $7 million to rehabilitate the Chattanooga Bank Building at 8th and Market streets into a 74-unit apartment complex.
Ray Moss Development, Inc., said rental fees for the one- and two-bedroom units would be set between $1,100 and $1,300 and house approximately 200 residents, according to a report in the Times Free Press. The first floor of the building will be developed for retail, while the 11th floor will house an unnamed corporate headquarters.
The demand for affordable housing downtown is great, said Kim White, president of River City Co., which works to attract new business and residents downtown.
“We need more 24-hour people downtown,” White said. “There are 55,000 workers downtown, but not a lot of downtown residents. Condos are expensive, and this property takes a building from its former office-space use and transforms it into something vitally needed. For example, 200 UTC students wind up in hotels every year. This really fills a void.”
While the $1,100+ rent may seem high, rents overall are rising and those who work downtown would obviously benefit from decreased transportation costs.
There is a downside to this development. The Chattanooga Bank Building was the practice space home to some very talented bands who rented the unused space to create great local music. Moonlight Bride, The Bohannons, Elk Milk and Behold The Brave are among those that will now have to find a new home. -ZC