The Cookeville City Council discussed a proposed zoning amendment Monday that would allow the Fall Creek Inn to transition from a motel into an affordable multi-family housing development.
Planning Director Jon Ward said the owners of the facility requested the change to offer more affordable rates through a multi-family designation. Ward said the property located at Highway 111 and I-40, has already shifted away from nightly rentals.
“The owners claim that they can offer more affordable rates for the type of housing they’re providing out there,” Ward said. “Most of that facility, in my understanding, is rented and is not like more of a transient rental anymore, the motel isn’t, it’s more of a longer-term occupancy.”
The proposed amendment would create a special exception for “adaptive residential multi-family reuse” within the commercial industrial district. Ward said the change would allow the owners to secure better interest rates for the project compared to a commercial motel loan.
“They’ve mentioned they can get better interest rates on a multi-family project versus a commercial motel project,” Ward said. “Vice Mayor (Luke) Eldridge had asked us to look into it and we came up with something to try to address it.”
Eldridge said he has been in contact with the Crossville Housing Authority regarding the potential use of HUD housing vouchers at the site. Eldridge said local law enforcement has reported a decrease in criminal activity at the location as it has transitioned to long-term renters.
“These are people who are… they can pay a thousand dollars a month or they’re just having trouble getting to that next step into an apartment,” Eldridge said. “Either the apartment’s not there or they can’t get enough money.”
Council Member Ali Bagci asked about enforcement mechanisms to ensure the property continues to serve the intended income levels. Ward said the ordinance includes conditions requiring at least 20 percent of units be occupied by households with incomes no higher than 50 percent of the area median income, or 40 percent of units for those at 60 percent of the median income.
“One of the conditions is an annual report’s required,” Ward said. “These are the conditions, if you don’t meet the conditions you’re not an approved use.”
City Manager James Mills said the city can take legal action to enforce the zoning code if the property fails to meet the special exception criteria. Mills said the developers operate similar facilities in Knoxville and Sevierville.
“In theory it sounds like a really good idea, and it’s an opportunity to provide housing opportunities for people that otherwise won’t have them,” Mills said.
The old Fall Creek Inn was renamed to Suburban Suites about a year ago.
The council scheduled a public hearing for the zoning amendment on July 2.