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Knoxville council approves FY2026 budget amendment, backs workforce-housing tax-credit project and awards façade grants
Summary
After public hearings, the Knoxville City Council approved a Fiscal Year 2026 budget amendment, approved six downtown façade-improvement grants tied to a CDBG program, and passed a resolution supporting Kading Properties’ Workforce Housing Tax Credit application for 111 units. Council also approved payment of claims including a large HVAC pay application.
Knoxville’s City Council on May 18 approved a resolution adopting a Fiscal Year 2026 budget amendment following a public hearing and cleared several downtown and housing actions, including support for a workforce housing tax-credit application and approval of six façade-improvement grants.
The budget amendment hearing was opened at 6:29 p.m.; an affidavit of publication had been filed on May 8, 2026, and the minutes record that there were no written comments or objections. A resident asked about amendments to the capital fund, continued hosting of the Veteran’s District website, and attorney fees. The hearing was closed at 6:33 p.m., and a motion by Council Member Dan Losada, seconded by John Gotta, to approve the FY2026 budget amendment passed on a roll-call vote (individual tallies not listed in the minutes).
At 6:34 p.m. the council opened a public hearing on the status of funded activities for the Knoxville CDBG Downtown Façade Revitalization Project. Zhi Chen, identified in the minutes as a MIPA representative, provided a brief timeline overview of the grant project. One resident raised a concern that a property owner would be unable to complete interior work until the grant project’s final closeout, which the minutes say is anticipated in Spring 2027. The hearing closed at 6:43 p.m.
Later in the meeting, the council approved a resolution in support of Kading Properties’ Workforce Housing Tax Credit application for 111 multi-family units in Phase 2 of the Villas on Bell Avenue (motion by Chris Nichols, seconded by Dan Losada; passed on a roll-call vote; individual votes not recorded). The council also approved six Knoxville Façade Improvement Grant applications (motion by John Gotta, seconded by Chris Nichols; recorded as all ayes).
Council members approved payment of claims and accounts payable as presented. The claims list in the minutes includes a Pay Application 1 to Dickerson Mechanical for Public Safety HVAC in the amount of $111,726.54 and a fuel payment to WEX Bank totaling $12,638.89 among many other line items.
City Manager Heather Ussery reported that paving on Veterans Boulevard and Marion Street is complete, that crews have moved to Gephart Street and that Bell Avenue is scheduled for paving within weeks; piers for the Public Safety Building Project were expected to be delivered soon. Fire Chief Cal Wyman told the council the Knoxville Fire Department received the Gold Helmet Designation, and Water Reclamation Supervisor Patrick Murphy reported that a paving project budgeted in FY2027 is completed and that a new camera for operations arrives the next day.
The council adjourned at 6:52 p.m.
What’s next: The minutes do not specify effective dates for the budget amendment or further steps on the CDBG closeout beyond the projected Spring 2027 timeline.
