Robert Gustafson of Chitchatt Properties, who received tax relief in 2011 after setting up five apartments in an old building on the Southside, said Monday that most or all of the tenants are planning to buy the units as condos.
Mr. Gustafson said he wants to convert the units to condos, which would end the tax break.
The PILOT (payment in lieu of taxes) was granted based on the renters being low-income to moderate-income.
Phil Noblett, attorney for the city Industrial Bond Board, said it was the first time anyone has voluntarily given up a tax abatement.
Mr. Gustafson got the tax break after he converted an old Masonic Lodge at 1617 Rossville Ave. to five apartments.
He said in a letter to the city's Health, Education and Housing Facility board that he has been renting the five apartments on the second and third floors since the long-vacant building was restored.
However, he said, "I would like to terminate this PILOT program, as I will be selling the individual units starting in May. Each individual owner of the five condominiums will then pay taxes on their units."
He said Monday that four of the tenants plan to buy their space as a condo, and he said the fifth may do so as well.
A winery is on the first floor.