The Regional Planning Agency staff is recommending denial of a request to convert a 6.31-acre industrial site on the Southside to a mixed-use development.
The staff report said it is important to keep some industrial areas intact for continued job growth, and that a site along Main Street would be more appropriate.
The Planning Commission meets Aug. 8 at 1 p.m. at the County Courthouse.
SEI Ventures is planning the development at the 1900 block of Myrtle Street, 2100 Rossville Ave. and 1929 Central Ave. The site is located approximately 250 feet west of the Central Avenue and Rossville Avenue intersection. The site continues along the railroad right-of-way until East 17th Street.
The project would include retail, office and residential uses.
Proposed access would be on Myrtle Street and Rossville Avenue.
It is planned to reuse an existing three-story building as well as add multi-story buildings along Myrtle Street.
The proposed density is approximately 26.8 dwelling units per acre.
The area is a mixture of small-lot residential dwellings and large-scale multi-story buildings. To the west of the site is the 140-foot-wide railroad right-of-way. To the east of the site is a mixture of residential and industrial uses. To the south of the site are large scale industrial uses. Due to the industrial nature of the area there are very few residential dwellings that currently exist, it was noted.
The site is currently zoned M-1 Manufacturing Zone with a special exception permit for an Industrial Recycling Center. The site obtained a Special Exception Permit in 2010 by resolution from the Planning Commission.
The staff noted that the property is surrounded by M-1 Manufacturing Zone. Though M-1 Manufacturing Zone does not allow residential uses, there are several existing legal but non-conforming uses to the east. The nearest C-3 Central Business Zone (same as the request) is approximately 150 feet to the west across the railroad right-of-way.
The staff report says, "The Downtown Plan (adopted by City Council in 2004) includes this area, but does not make a specific recommendation for the area. The Downtown Plan does note the following for the area: 'The Southside will be re-established as one of the city’s most attractive areas in which to live, work and play, focused on the resurgent neighborhoods of Cowart Place, Fort Negley and Jefferson Heights, and supported by Battle Academy and the reinvigoration of historic downtown manufacturing zones.'
"The Development Policy from the Comprehensive Plan 2030 update (called Renewing Our Vision and adopted by Planning Commission in 2016) identifies this site as being in intensity level 5. Level 5 describes the development potential appropriate for high-density development based on the highest access to infrastructure.
"The M-1 Manufacturing Zone permits most types of non-residential uses, but does not permit residential uses. The C-3 Central Business Zone permits residential and non-residential uses but with a required urban development form. This zone does not have any parking requirements.
"The Comprehensive Plan 2030 Update notes; 'The recent resurgence in manufacturing has strained the availability of 'move in' or 'shovel ready' industrial sites with all utilities and infrastructure.'
"There is currently no connection of Rossville Avenue across adjacent railway to the Neighborhood known as Jefferson Heights.
"The proposed use could be consistent with surrounding uses as there are several single-family residential dwellings in immediate proximity of the site. The majority of development around the site is industrial which can create nuisance issues for new residents.
"The proposal reuses several existing buildings and introduces several new development forms of the area including multi-story multi-family and townhouses.
"The proposed residential density is double the existing surrounding densities and places dense residential development in the middle of an industrial area.
"The proposed structure does raise concerns regarding location, lighting, or height in regards to existing rail uses and abutting single-story residential dwellings.
"The proposal would not be an extension of an existing zone.
"The proposal would set a precedent for future requests.This proposal represents the first large-scale redevelopment for this immediate area where a significant acreage of M-1 zoning is being changed to an urban mixed use zone (C-3), shifting the focus of an area from manufacturing to mixed used urban residential."
The report says the proposal "is large enough to act as a catalyst for change in an area where there is no land-use plan. The creation of such a catalyst can create a variety of unintended consequences if not studied and planned for. While adopted policies support revitalization of Chattanooga’s urban areas, as noted in both the Comprehensive Plan and the Downtown Plan, they also support maintaining jobs and acreage for job sites. The precedent of converting this site from M-1 to C-3 will have implications for the redevelopment of bordering properties currently zoned M-1.
"While staff supports urban redevelopment in principle, the overriding concern for staff was the shift of an area that could support industrial redevelopment to one that is limited to residential/mixed use. More appropriate locations for this type of development should be along the Main Street corridor such as the recently approved rezoning of properties to UGC along the 900 block of Main Street."