Knoxville, Tennessee Development News
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City Council R 265 260707
Published: Jul 8, 2026
City Council Approves CDBG Funding for East Tennessee Community Design Center
The City Council approved a subgrantee agreement with the East Tennessee Community Design Center for $25,000 in Community Development Block Grant (CDBG) funding. This funding will provide conceptual design and technical assistance services for approximately seven community projects. Council members sought clarification on the project identification process, and it was explained that nonprofits often approach the design center with ideas, and the department ensures consistency with city plans. This initiative aims to provide design assistance at no cost to qualifying projects.
City Council Approves One-Year Moratorium on Large Data Center Development
The City Council enacted an emergency ordinance establishing a one-year moratorium on the permitting, construction, or development of large data centers requiring 10 megawatts or more of power within the city. This moratorium is intended to provide time for the city and county planning staff to study the impacts of such facilities and develop recommended zoning code changes and other safeguards, as data centers are not currently specifically defined in city codes. Concerns raised by council members and the public included energy and water usage, noise, and quality of life impacts. The process will involve close collaboration between city and county planning, public review, and input before any ordinance amendments are brought forward. Existing data centers, like US Cellular, have served well, but the increasing pressure from AI and mining necessitates careful study.
City Council Approves CDBG Funding for Southeastern Housing Foundation 2
The City Council approved a subgrantee agreement with Southeastern Housing Foundation 2 for $90,775 in Community Development Block Grant (CDBG) funding. This funding will support the organization's permanent supportive housing case management program in District 3. Council members noted that CDBG funds are federal grants used for the benefit of low and moderate-income persons, and this aligns with efforts to keep people housed.
City Council Authorizes KCDC to Develop North Waterfront Redevelopment Plan
The City Council approved a resolution requesting the Knoxville Community Development Corporation (KCDC) to create a redevelopment plan for the North Waterfront area, to be titled the North Waterfront Redevelopment Plan. This plan will cover the north bank of the Tennessee River from the Henley Bridge to Third Creek, stretching from Worlds Fair Park through Maplehurst to Neland Drive. The goal is to encourage revitalization, reuse of vacant/underutilized properties, and improve connectivity between the University of Tennessee, downtown, World's Fair Park, and the riverfront. The process will involve public engagement, including notification to property owners, public hearings, and making the draft plan available for review. This is seen as the first step in a long-term planning process.
City Council Approves Agreement for Pedestrian Safety Improvements on Southerntherland Avenue
The City Council approved a resolution authorizing the Mayor to enter into an agreement with the State of Tennessee Department of Transportation for pedestrian improvements on Southerntherland Avenue. The project, estimated at $300,000, will involve pedestrian safety enhancements between Long View Road and Hollywood Road. The city's funding contribution is $30,000, with the remainder presumably covered by the state through the pedestrian road safety initiative. This project impacts districts two and six.
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