Critics decry cost of $25 million plan to house homeless in metro Nashville
Low-income housing developers and advocates blasted a new plan from Mayor David Briley’s administration to pay a private developer $25 million to build a 100-unit apartment complex for people living on the streets.
The deal would allow Tony Giarratana, developer of the 505, Cumberland on Church and other residential towers, to build a commercial steel-and-glass high-rise on Church Street Park, a longtime refuge for homeless people.
In return, he would oversee development of an eight-story homelessness “services center” and permanent transitional housing facility near Public Square Park, on his parking lot at 301 James Robertson Blvd. It would be financed with general-obligation bonds allocated for affordable-housing development last year.
Critics say the proposal is too expensive and wasn’t decided through an open, competitive process.
“Affordable housing advocates were led to believe that the $25 million would be devoted exclusively to affordable housing and not as a giveaway to another private developer,” said Paulette Coleman, who leads the affordable housing task force for Nashville Organized for Action and Hope. “The enormity of the growing problem demands bolder and more innovative action and policies on everybody’s part. That’s $25 million that affordable housing advocates thought could be leveraged to produce considerably more than 100 affordable units.”
But homeless-outreach workers welcomed the initiative, which still must gain approval in coming months from the Metro Parks Board, the Metro Planning Commission and the Metro Council.
“If we stay stagnant, we’re never going to move people out of homelessness. We have to move the needle,” said Rachel Hester, executive director of Room at the Inn, which worked with city officials on this plan. “One hundred apartments is nothing to balk at, especially in the downtown core where there are hospitality jobs and services. Nothing’s ideal, but having people sleep outside is definitely not ideal. Nashvillians deserve better.”
‘A GENEROUS TRADE’
Erik Cole, a mayor’s office aide and the city’s chief resilience officer, said there were lengthy negotiations with Giarratana before the proposal was finalized. He called it “a generous trade for the city.”
Metro officials met with community groups and organizations that help the homeless to draft the details of the transitional housing and services center.
But Floyd Shechter, president of SmartSpace LLC real-estate firm, said the city should have opened the offer up to other developers.
“It just seems to me that the government would want to be above reproach and make the same opportunity available to other developers, instead of creating these transactions behind closed doors,” Shechter said. “It’s bad for public trust.”
Developer Bruce McNeilage, who built the affordable 121-unit Solo East condo project in East Nashville, said the deal is too pricey and was unfairly awarded.
“Why should Tony Giarratana be getting dollars to do things when there are hundreds of vacant [Metro owned] parcels that nobody’s getting?” McNeilage said. “I think we should concentrate on acquiring land that can be saved from the wrecking ball versus building things. Buying existing assets is much, much, much cheaper.”
McNeilage, a founder of Harpeth Development and Kinlock Partners, said his own recent proposal to build low-cost homes on a Metro-owned parcel was ignored.
He also offered to sell his East Nashville apartment complex, The Park at Five Points, to the city at a discount earlier this year, but wouldn’t agree to their low bid of about $3 million less than its market value. Now, the new owner has dramatically increased rents.
EARLY DEVELOPMENT DETAILS
The first floor of the proposed transitional housing project would be devoted to offices for service providers, alongside showers, bathrooms and storage areas.
Ongoing maintenance and service costs would be paid with Metro operating funds and tax revenue from new Church Street developments, according to city officials.
Giarratana, who opened The Pearl low-cost workforce apartments in midtown last year, said he would ensure the development is as attractive as market-rate housing.
Design firm Earl Swensson Associates, Inc. has developed early plans for a light-colored triangular structure with lots of windows that matches surrounding buildings.
Giarratana would also build a $5 million green corridor with some commercial component along a stretch of Anne Dallas Dudley Boulevard near the park, formerly called Capital Boulevard. He would also pay a one-time $1.4 million fee to the city.
Judith Tackett, director of the Metropolitan Homelessness Commission, said the plan offers a unique, much-needed opportunity for people usually left out of affordable housing plans.
“I’m really excited about this opportunity. Permanent supportive housing is in dire need in our community,” Tackett said. “Our goal is low-barrier access. The lower we can go, the better. We’re working on what the services center will look like, and we want all community partners to come to the table. We’re working on a coordinated entry system with all stakeholders that assist people experiencing homelessness.”