City hotel-motel tax may increase to 4%
By Mike Steely
Senior Writer
steelym@knoxfocus.com
In an effort to fund repairs for the city coliseum and other related facilities, the Knoxville City Council voted, on first reading, to up the hotel-motel occupancy tax from 3 to 4 percent.
The idea is to reinvest in the coliseum and that is strongly supported by the Knoxville Ice Bears and the Downtown Alliance. Mayor Indya Kincannon said in the council’s regular meeting Tuesday that the coliseum is “beautiful but deteriorating” and needs some repairs.
The tourism tax was put into place with the idea it would “sunset” with the paying off of the convention center. The average overnight stay inside city lodgings is about $117 per night and the increase is estimated to bring in about $2 million new dollars to the city.
The first reading passed unanimously and now goes for a final reading next Tuesday, November 26.
In other action, the council voted to use about $2.3 million from the federal American Rescue Plan Act, coronavirus state and local recovery funds for buying and developing affordable housing. The idea is to purchase two downtown commercial properties and build affordable housing units with rents based on income and assisted with vouchers. Described as a “sizable development,” the effort would add to the mix of downtown housing.
Councilman Andrew Roberto said he was “enthusiastic about using these funds for this purpose.” He also urged private developers to look to the city for funding of similar projects.
Postponed until the next meeting was a request from Habitat for Humanity to change the zoning of 4325 Pinehurst Drive from civic and institutional to medium-density residential. The property includes an abandoned church and parking lot.
Bill Terry of Habitat said the project would include the construction of 12 double units, or 24 owner-occupied housing units. He also said the church building will be sold to a pastor who wants to operate it.
The council also heard from neighbors who are concerned about traffic issues and said that Habitat has had little contact with them about plans for the property although Habitat may have mailed letters 10 days prior to the initial planning commission meeting on the matter.
Council members Roberto, Lauren Rider, Charles Thomas and Debbie Helsley discussed getting the two parties together with Rider speaking of her concern about the road width in and out of Pinehurst Drive.
Rider, in making a motion to postpone for two weeks, said she would help set up a neighborhood meeting with Habitat.
The council voted to allot $1.4 million for a housing development in Inskip. Developer John Huber spoke for Hopeful Housing and said the project will provide 48 affordable housing units, 60% of which would be for low-income residents. He estimated completion in late 2026.
A request from Cherokee Country Club to rezone 5331 Lyons View from residential to open space was postponed for two weeks. A request to change 0 Lifespring Lane from office to neighborhood commercial was also postponed for two weeks as was a rezoning request for property at 4720 West Martin Mill Pike to change from RN-1 to RN-2.
