The outlook is grim for the Chattanooga Housing Authority's proposed 36-unit apartment complex on Fairmount Avenue in North Chattanooga. This Monday, the Regional Planning Commission will consider a request to rezone the existing complex, which C.H.A. plans to demolish, to a lower density. If approved, C.H.A. could potentially lose a $4.2 million stimulus grant to pay for the new development.
The zoning request—proposed by the mayor and triggered by a Chattanooga City Council vote in January—is recommended for approval by RPA Staff. Other than the existing C.H.A. building, the area consists primarily of single-family homes, the agency's report says. The RPA report also notes that (had the agency existed), it would not have recommended the current, high-density R-3 zoning in 1968.
A lower density "means fewer units which translates into less traffic and reduced impact on the current street system, which is not well suited to high density development and other infrastructure," the staff report says.
The report will influence the Planning Commission's decision on Monday, as well as the City Council when it considers the same measure. The 15-member Planning Commission consists of city and county representatives including Chattanooga Mayor Ron Littlefield and City Councilman Jack Benson. Both have criticized C.H.A.'s plans in recent weeks.
During the State of the City address on Thursday, the mayor unequivocally condemned C.H.A., saying that the agency is a "problem child" that has moved "from one developmental and financial disaster to another."
"If the Chattanooga Housing Authority is to survive the decade ahead and serve out its greater purpose, it will require a new attitude and new leadership," Littlefield said.
C.H.A. Executive Director Betsy McCright attended the mayor's address and left shortly after the event. On Friday she said the tone of the speech was disheartening. "We have made every effort to work cooperatively with city officials on the Fairmount project, and we will continue to do so," she said.
Prior to the mayor's address on Thursday, the C.H.A. Board of Commissioners authorized McCright to take any action necessary, including legal remedies, to preserve the agency's property interest at the Fairmount Avenue site.
The City Council's action in January "seriously affects both the viability of the proposed development, as well as the C.H.A.'s property interest in the existing apartment complex should the zoning change become effective," the C.H.A. resolution says.
Once the Planning Commission deliberates on the issue, an ordinance to rezone the site will move back to the City Council. An ordinance to lower the site's density will be accompanied by recommendations from both the RPA Staff (to approve) and the result of the Planning Commission's upcoming vote.
The original resolution that triggered the zoning request was approved by the City Council in a 7–2 vote.
Update | Feb. 8, 2010 Chattanoogan.com reports that the Planning Commission postponed the decision to rezone the Fairmount Avenue site at the mayor's request:
Mayor Ron Littlefield said Monday afternoon he is conferring with HUD officials to try to work out a settlement in regard to the controversial Fairmount Apartments in North Chattanooga.
On the mayor's recommendation, the Planning Commission tabled a proposal by the city to rezone the three-acre property from R-3 to RTZ, which in effect would have killed the CHA plan to use $4.8 million in federal stimulus funds to rebuild the complex for low-income residents.
Mayor Littlefield said the settlement would involve "changes to the site, design and density."
David Morton
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