The Cookeville City Council expected to approve the conversion of a local motel into a multi-family residential property through a special exception process.
Planning Director Jon Ward said the proposal aims to transform the former Fall Creek Inn into available housing. Ward pointed to examples across the state of creative, affordable options for those currently unhoused.
“It’s not functioning that way, though,” Ward said “It’s not successfully a motel, right? And the last multiple owners have not been successful in that. I mean, it’s a product of what it is, where it is, how it is. I mean there’s a number of things I think that play into that.”
The council debated the specific percentages of units that should be reserved for lower-income residents. Ward said the current draft of the ordinance requires 20 percent of units to be at or below 50 percent Area Median Income (AMI) and 40 percent of units to be at or below 60 percent AMI.
Ward said the ordinance includes specific income requirements based on AMI to ensure the units serve as affordable housing for the community.
Council Member Eric Walker said he is concerned the conversion might be motivated more by business financing than a genuine desire to provide affordable housing. Walker said the proposed rent of approximately $1,200 per month for some units seems high compared to traditional apartments in the area.
“My fear is what we’re doing is we’re creating a situation where we’re making a change in our zoning and we’re allowing a hotel now to become multi-family to benefit the loan,” Walker said. “And it doesn’t have any ability to actually force the price of the rent down because we’ve set our parameters such that it’s meeting the existing rent.”
Council Member Luke Eldridge said the conversion provides a unique opportunity for residents who cannot afford the high upfront costs of traditional apartments, such as first and last month’s rent and security deposits. Eldridge said the property would also be eligible to accept housing vouchers, which many local landlords currently refuse.
“Is it ideal? No, but it’s another opportunity that we really don’t have in the city for people who cannot put down that type of money for an apartment,” Eldridge said. “It’s something we don’t have, it’s a solution to a problem that we know is there.”
Ward said the motel is not currently successful in its current format and the zoning change would require the owner to sign leases of at least six months with tenants.
“This is more valuable I think to our community than the tax revenue that it generates,” City Manager James Mills said. “Whatever we do is going to be a benefit, be there for these families, which we can’t do that now.”
The council requested that Ward speak with the property owner about potentially increasing the percentage of affordable units before the final vote. The ordinance is scheduled for a second and final reading during the council’s regular meeting on Thursday.
