KCDC Board Sets Oct. 29 Vote on Loans, Tax Credits and PILOT for 170 Homes at the Former St. Mary’s Hospital

The financing for new homes at the former St. Mary’s Hospital in North Knoxville goes to a board vote next week. The Board of Directors of St. Mary’s GP Corporation, which is an instrumentality of Knoxville’s Community Development Corp. (KCDC), will hold a specially called meeting Thursday, Oct. 29, 2026, at KCDC’s offices at 901 N. Broadway.

The board will consider loan documents, low income housing tax credit paperwork, and a lease and payment in lieu of taxes (PILOT) transaction with KCDC for an approximately 170-unit housing development, according to the public notice dated Oct. 19.

The meeting follows KCDC’s regular Board of Commissioners meeting, which starts at 5:00 p.m. The St. Mary’s board convenes immediately after.

What is on the Oct. 29 agenda

The notice lists four categories of business:

1. Loans. Approval of documents for loans to DGA St. Mary’s LP from Walker & Dunlop, LLC, Pinnacle Bank and the City of Knoxville, tied to the partnership’s development of the roughly 170 units.
2. Tax credits. An amended and restated limited partnership agreement and other documents tied to the use of low income housing tax credits.
3. Lease and PILOT. Approval of a lease and a payment in lieu of taxes transaction with KCDC.
4. Everything else. Other financing, construction and development transactions and documents for the project.

Anyone who wants to comment can do so under KCDC’s Public Input Policy, which the notice says is posted on KCDC’s website.

What a PILOT means here

A payment in lieu of taxes deal replaces some or all of a property’s regular tax bill with a negotiated payment. The notice does not state the payment amount or term. Those details will be in the documents the board considers.

What is planned at the St. Mary’s site

The project is known as Riella at Oakwood. WBIR reported in July that it will have three parts: the adaptive reuse of the historic hospital, a new four-story apartment building and 21 townhomes.

Sources: WBIR, July 23, 2026; TN Ledger Knoxville Edition, July 31, 2026; Oct. 19, 2026, meeting notice (approximately 170 units). The two outlets give different counts for the hospital building, 41 and 40.

WBIR reported that the historic hospital’s brick exterior will be restored and new windows designed to keep the building’s character. Plans include green space, a playground and a community dog park open to the surrounding neighborhood.

Location and day-to-day details

The site sits near a bus line, Fulton High School and the commercial strips along North Central Street and Broadway, WBIR reported. Residents will pay for electricity, while the property owner will cover water, sewer, trash and pest control, and residents will receive a utility allowance to help with power bills.

Transit, a nearby high school and two commercial corridors are the kinds of everyday details buyers ask about when they tour homes in the streets around the site.

Timeline and size

• Construction was expected to begin in October, with the whole project taking 21 to 22 months, WBIR reported.
• Buildings will open one at a time, so some residents could move in before the project is finished.
• First residents are expected in early 2028, with full completion estimated in fall 2028.
• The development is expected to bring roughly 300 people to the area.
• Developers estimate about 1.3 parking spaces per unit.
• Five percent of units will be fully accessible, and another 2% will have modifications for residents with sight and hearing needs.

How the site got here

The city bought the St. Mary’s property from Tennova in 2019, according to TN Ledger. Lincoln Memorial University opened its College of Dental Medicine there in 2022, followed by the city’s Public Safety Complex in 2023 and the McNabb Center’s EmPATH facility in 2024.

Knoxville City Council voted unanimously on July 21 to approve $2 million in city funding for the housing. TN Ledger described the overall effort as a $70 million project and said it was developed with KCDC and the Oakwood Lincoln Park Neighborhood Association.

“This collaborative plan meets two major goals for the St. Mary’s site: preserving the historic hospital building and adding much needed housing options,” Housing and Neighborhood Development Director Kevin DuBose said, as quoted by TN Ledger.

The same council action approved $800,000 in federal Community Development Block Grant money for home repair programs. That includes $450,000 with the Knoxville-Knox County Community Action Committee for emergency and minor repairs on about 43 owner-occupied homes and $350,000 for Neighborhood Housing Inc.’s Operation Backyard for about 68 homes.

Knoxville dates to watch

• July 21, 2026 — City Council approves $2 million for the St. Mary’s housing.
• Oct. 19, 2026 — Notice of the St. Mary’s GP Corporation special meeting.
• Oct. 29, 2026, after 5:00 p.m. — KCDC Board of Commissioners meeting, then the St. Mary’s GP Corporation board, 901 N. Broadway.
• Early 2028 — First residents expected, per WBIR.
• Fall 2028 — Full completion estimated, per WBIR.

What it means for North Knoxville homeowners

• Vacant buildings drag on a block. Restored ones help. WBIR reported that the hospital sat vacant for more than seven years. A restored landmark with new residents and a public dog park changes how buyers see the streets around it.
• Construction years are a selling window question. If you own near the site, expect trucks and noise through 2028. Some sellers list before the heavy work. Others wait for the finished product.
• Know the repair money. If you own an older home and qualify, the city’s CDBG repair programs may help with emergency or accessibility work before you sell.

For more on KCDC’s other big North Knoxville effort, see Knoxville Votes 7-1 to Start KCDC North Waterfront Study.

Own a home in North Knoxville or anywhere in Knox County? Get a free home valuation to see what it is worth today, or request a cash offer if you want a firm number on your own timeline.

When is the St. Mary’s housing financing vote?

The St. Mary’s GP Corporation board meets Thursday, Oct. 29, 2026, at KCDC’s offices at 901 N. Broadway, immediately after KCDC’s 5:00 p.m. Board of Commissioners meeting.

What will the board consider?

Loan documents for DGA St. Mary’s LP from Walker & Dunlop, Pinnacle Bank and the City of Knoxville; low income housing tax credit paperwork; a lease and payment in lieu of taxes deal with KCDC; and other development documents.

How many homes are planned at the former St. Mary’s Hospital?

About 170. WBIR reported 41 units in the hospital, 109 in a new building and 21 townhomes; TN Ledger reported 40 senior apartments in the hospital plus the same 109 apartments and 21 townhomes.

When will people move in?

WBIR reported the first residents are expected in early 2028, with the full development estimated to be complete in fall 2028.

Can the public comment at the Oct. 29 meeting?

Yes. The notice says anyone who wants to comment may do so under KCDC’s Public Input Policy, posted on KCDC’s website.

Source links

• Notice of special meeting, Board of Directors of St. Mary’s GP Corporation (published Oct. 19, 2026)
• WBIR — Historic St. Mary’s Hospital site to become 170-unit housing community (July 23, 2026)
• TN Ledger Knoxville Edition — City Council backs St. Mary’s housing (July 31, 2026)

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