The Knoxville City Council approved a development agreement with Kading Properties on Monday night.

The agreement is for a new Development called Villas on Bell LLC. consisting of 247 units of market rental housing. The development will be a variety of attached housing, duplex, and single detached dwelling units. The development, which will be located on the land west of Roche Street and north of W Bell Ave., is contingent upon securing federal housing tax credits. Kading will be required to pay $2.8 Million for the extension and paving of Bell Ave. east to Roche St. and associated infrastructure that will be paid over 20 years total. Kading will eventually be paid back for this due to a TIF agreement with the city. Knoxville City Manager Heather Ussery says this development agreement gives Kading additional scoring credits as they try to secure the tax credits.

“This project is contingent upon workforce housing tax credits that they are going for. June 10th is the deadline for that and so a development agreement in place with the city also gives them additional scoring credits for that application. Mid-August is when they will find out if they will receive those and ultimately if the development will move forward.”

If the project moves forward, it will be completed in two phases.