A tax abatement for the Chattanooga Choo Choo cleared its final hurdle on Monday with unanimous approval by the city's Health, Education and Housing Facility Board.
The Choo Choo plans to immediately begin work converting a current hotel building into 97 apartments.
Choo Choo managing partner Jon Kinsey said his firm can comply with a new requirement to submit annual rent rolls, saying it has done so for years in other cities.
Dana Perry, member of the city board, recommended that the panel have an annual meeting in which it reviews the reports from developers who have been granted the tax break.
Hicks Armor, chairman, said, "It will show that this board is doing its due diligence."
The Choo Choo said 95 of the 97 units will qualify for the program set to attract low-income and moderate-income renters.
However, officials said the Choo Choo is only required to set aside 19 of the units for that purpose.
It will be 2032 when the Choo Choo resumes paying full taxes on the building.
Chairman Armor told Mr. Kinsey, "I just hope you and I are here to see the payoff."