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Council backs Kading Properties tax-credit support, approves façade grants after CDBG hearing

Knoxville City Council · May 18, 2026
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Summary

Following a May 18 public hearing on the Knoxville CDBG Downtown Façade Revitalization Project, the Council approved support for Kading Properties’ Workforce Housing Tax Credit Application for 111 units and approved six façade improvement grant applications. A resident warned that interior work on a property will be delayed until CDBG closeout, expected in Spring 2027.

The Knoxville City Council on May 18 held a public hearing on the status of the city’s CDBG Downtown Façade Revitalization Project and subsequently approved support for a workforce-housing tax-credit application and six façade improvement grants.

Mayor Brian Hatch opened the hearing at 6:34 p.m.; an affidavit of publication was filed May 8. MIPA representative Zhi Chen provided a brief overview of the grant project timeline. A resident raised a concern that a property owner could not continue interior work on their property until project closeout, which staff anticipates in Spring 2027.

After the hearing the Council voted to approve a resolution supporting Kading Properties’ Workforce Housing Tax Credit Application for 111 multi-family housing units in Phase 2 of the Villas on Bell Avenue. The motion was made by Council Member Chris Nichols, seconded by Dan Losada, and passed on a roll-call vote per the meeting record.

The Council also approved six Knoxville Façade Improvement Grant applications on a motion by John Gotta, seconded by Chris Nichols; the minutes record the votes as all ayes. The CDBG revitalize-and-façade efforts aim to improve downtown storefronts and enable private reinvestment; the hearing record notes that final closeout of the CDBG project is anticipated in Spring 2027, which may affect the timing of interior rehabilitation work for some property owners.

The minutes do not include a detailed grant award amounts breakdown; the Council’s actions record approval of the grant applications and a supportive resolution for the tax-credit application.