Developer says HUD-backed loan plus PILOT will fund infrastructure, enable 40 workforce units
Developer representative Craig Cobb told the Knox County workshop that combining a HUD-insured mortgage with a 20-year PILOT and a 50% set-aside for workforce units would create additional loan proceeds to pay for required infrastructure (developer cited a proposed $60,000 annual payment figure). Commissioners asked about loan terms and monitoring; developers cited clawbacks and annual reporting.
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Craig Cobb, representing the proposing developer, described a HUD-insured finance product tied to workforce housing and said the PILOT is the mechanism lenders are using to justify larger loan proceeds for site work. "We're taking this other 60,000 that you are currently not getting, that does not exist, and the lenders will lend us more money on it," Cobb said, summarizing how the developer expects to convert anticipated tax savings into upfront project funds, including a turn lane recommended in the project's traffic study.
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