Categories: Business NewsConstructionNewsReal Estate & Properties

New Townhome Development in Knoxville’s Happy Holler

Modern townhome development in Happy Holler, Knoxville

News Summary

Knoxville’s Historic Happy Holler district is set to welcome 17 modern townhomes, developed by Connolly Development Ventures. This new project aims to provide easy access to downtown amenities and enhance the city’s housing supply. Construction is expected to complete by the end of May, reflecting ongoing revitalization efforts in North Knoxville. Additionally, city officials support nearby townhome projects that aim to address growing housing demands, despite some community opposition.

Knoxville is set to welcome a new townhome development in its Historic Happy Holler district, spearheaded by Chattanooga-based Connolly Development Ventures. The project will feature 17 modern townhomes situated conveniently near North Central Street, designed to attract potential buyers by providing easy access to downtown Knoxville’s amenities.

Each townhome will have one or two bedrooms and include several dedicated parking spaces for residents. Construction is expected to be completed by the end of May, marking the latest addition to the revitalization efforts occurring in North Knoxville.

Kelsey Gaines, the Director of Development at Connolly, expressed enthusiasm about the project, citing the area’s charm and ongoing transformation. The new homes promise modern designs, special window features, and sleek finishes that reflect current architectural trends.

Additional Townhome Projects in the Region

Alongside the Happy Holler development, plans are in place for another townhome project consisting of at least 20 units in the West Hills area, located near Gallaher View Road and close to Middlebrook Pike. Supporters of this project argue that it will help increase the housing supply and potentially lower home prices in a region experiencing significant demand.

City leaders have shown support for higher-density housing initiatives along major thoroughfares, particularly in neighborhoods that are struggling to meet the housing needs of the growing population. However, opponents of the West Hills project have raised concerns, asserting that townhomes do not align with the predominantly single-family home character of the neighborhood.

City Council Votes and Related Projects

The Knoxville City Council recently voted 5-4 to approve the developers’ proposals. An opposing council member suggested the need for a compromise but was unable to reach an agreement with the developers prior to the deadline.

In addition to the townhome projects, another significant initiative in downtown Knoxville is the City Summit project. This five-story apartment building will house 89 units, including nine specifically reserved for workforce housing aimed at service industry employees. The total investment for City Summit is projected at approximately $25.4 million, with developer Joe Petre from LawlerWood acquiring the site for $1.5 million.

The City Summit project has received substantial financial assistance from the city through a PILOT (Payment in Lieu of Taxes) agreement. This arrangement enables the developer to pay an annual fee equivalent to the current tax value of the property during the nine-year period while deferring any increased property taxes until the PILOT period expires. City officials have confirmed that this tax break will not affect the city’s overall revenue, as the current tax value of the land will remain unchanged throughout the agreement.

Objectives of Development Projects

Both the townhome developments and the City Summit project aim to enhance the integration of housing with public transit stops, increase retail options on the ground floor, and expand the overall housing supply in the area, particularly the availability of affordable units. As Knoxville continues to grow and evolve, these projects represent significant steps toward meeting the housing demands of its residents.