Last week a ribbon cutting was held at First Creek at Austin to celebrate the opening of Phase Two of the development. First Creek at Austin, located a short walk from the new stadium, the Old City, and the rest of downtown, provides affordable, mixed-income housing. Some units are reserved for those with very little income, while a couple earning up to about $47,000 per year is eligible for some of the new homes.
It’s an idea that has worked well in other cities and is already having an impact here. The first phase was completed in December 2021, with 105 new homes coming online. It is now fully leased. Phase two is now open and brings an additional 180 one-to-three bedroom homes to the downtown area. I recently wrote about the ground-breaking for phase III, which will add another 161 when completed. Half of the new homes in Phase II were pre-leased.
A range of speakers lined the stage inside the tent, taking their turns at the podium. While that led to a lot of words on a hot August day, it also illustrated how complex the completion of affordable housing can be.
The effort was led by Knoxville’s Community Development Corporation (KCDC), but included governmental agencies from the federal level (HUD), to the state level (THDA), to the local level including both city and county governments. None of it would be possible, however, without financing. The dollars in this case came from Pinnacle Finance, a Nashville based financial company without whom none of this could be done. And then there are the various companies and contractors transforming the vision into reality, including our local Johnson Architecture, as well as Southeast Venture, on this phase of the project.
This bit from the press release illustrates the complexity of the deal:
First Creek at Austin Phase 2 construction funds came primarily through $19.6 million of low-income housing tax credits from the Tennessee Housing Development Agency (THDA), which allow KCDC to raise tax credit equity to fund development. Awarded through a competitive process, the Low-Income Housing Tax Credit (LIHTC) is a credit against federal income tax liability each year for 10 years for owners and investors in low-income rental housing.
Scott Broyles from the KCDC Board of Commissioners spoke first, followed by KCDC Executive Director and CEO Ben Bentley. Bentley pointed out that their mission goes beyond providing homes to “making great places and great neighborhoods with access to jobs, education, and parks.” He pointed out that the larger project will include a seven million dollar investment into First Creek at Austin Park, including a greenway connecting the housing to the stadium and and the Old City.
Mayor Kincannon echoed those sentiments saying it’s not just about “affordability, but quality of life.” She characterized the new homes as “a neighborhood of opportunity.” She noted that the city’s contribution included “$14.1 million in sitewide infrastructure support, including utilities, sidewalks and new roads. A signalized crosswalk with flashing lights opened in 2023 for schoolchildren who live at First Creek at Austin to safely travel across Summit Hill Drive to Green Magnet Academy as a result of a partnership with KCDC and Bike Walk Knoxville.”
City Councilperson Gwen McKenzie, who represents the downtown and east Knoxville district, recognized those present who had lived in the previous Austin Homes, some of whom now make the new neighborhood their home. She also spoke of the potential that can be fostered in a community that others may not recognize. She recognized members of the Minter family, former residents of Austin Homes whose children grew up to work for the FBI, for CAC, the mental health field, and for local government.
Following the speeches, the group was invited to tour one of the main buildings and a few of the residences. More than simply spaces to call home, the plans call for:
Amenities include upscale finishes, fitness center, resident lounge, pet spa, playground and Wi-Fi in common areas, among others. Additional plans for the site include an early childhood and health center, community space and resident gardens, a park, and greenway with direct access to the new multi-use stadium opening in 2025. The park and greenway are part of Reconnecting Knoxville, a comprehensive plan expected to start later this year to reconnect communities historically impacted by urban renewal.
If you’d like to learn more about First Creek or the possibility of applying for a home, click here. You’ll find more about KCDC, which has operated in Knoxville since 1936 on their webpage.
*Participants in the ribbon cutting included, from left: Jim Hatfield, Janice Rogers, Merrell Van Keuren and Peter McKay of KCDC; Becky Wade, vice chair Scott Broyles and Nadim Jubran of the KCDC board; KCDC Executive Director and CEO Ben Bentley; Knoxville City Councilmember Gwen McKenzie; Knoxville Mayor Indya Kincannon; Kevin Dubose of City of Knoxville; Katie Moore of Tennessee Housing Development Agency; Walter Perry of U.S. Department of Housing and Urban Development; Kevin Brown of Johnson Architecture; Orlando Diaz of Partners Development; Eric Schmittou of Pinnacle Financial Partners; former Austin Homes resident Robert Minter Jr.; and Cynthia Finch of New Direction Health Care Solutions.