Next step to turning Cayce Homes to $602M mixed-use plan

The Metropolitan Development and Housing Agency is seeking to create the new Cayce Place redevelopment district in a step toward converting Nashville's largest public housing complex into a $602 million mixed-income, mixed-use community.

Legislation to be filed with Metro Council Friday would seek adoption of the Envision Cayce master plan and also approval of a land swap with Metro Parks and Recreation for nine acres of adjacent Kirkpatrick Park land on which affordable housing would be built as part of the initial phase of redevelopment of James A. Cayce Homes in East Nashville.

Later, 11 acres of mini parks and open space would be created as part of the project, which will include 2,390 housing units, 127,700 square feet of retail space, and other uses such as a library and education facility.

The redevelopment district designation would provide $30 million in tax-increment financing to support Envision Cayce, which is expected to start this summer with the construction of an $11 million, 68-unit apartment community. The land swap would allow MDHA to keep current Cayce residents on-site as the overall property is redeveloped in phases, with the request for proposals for a contractor expected to be issued in the fall.

"What it does is preserve affordable housing for the very low-income citizens of Nashville for the indefinite future, and we'll rebuild Cayce Homes in the model of our new development," MDHA Executive Director James Harbison said after briefing council members Wednesday about the proposed ordinances.

Three months ago, MDHA received federal approval to convert the first 14 Nashville-area public housing properties with 3,100 units overall to Section 8 project-based assistance, which will give the agency more flexibility in financing redevelopment. Cayce Place is among properties included in a second phase.

Under the land swap between MDHA and Metro Parks, the existing Kirkpatrick Community Center would remain.

"It seems like a very good deal from our aspect," Tommy Lynch, director of Metro Parks and Recreation, said about the deal, which its board is expected to vote on at a meeting next month.

Separately, MDHA plans to submit legislation seeking Metro Council's approval for a Payment In Lieu of Taxes program that would help mitigate the high property taxes on affordable residential rental housing that is financed with low-income housing tax credits allocated by the Tennessee Housing Development Agency.

"It's a good step toward assisting Nashville and Davidson County in providing much-needed affordable and workforce housing," said Dwayne W. Barrett, a Nashville tax attorney who works with developers of affordable housing units and public housing authorities on such matters.

Under the plan, MDHA and ultimately the Metro Council would determine the PILOT payment due from the property owner.

MDHA also plans a filing seeking Metro Council's approval for the Bordeaux Redevelopment District, which would provide incentives to attract residential and commercial development to a part of that North Nashville area and also preserve open space.

Reach Getahn Ward at 615-726-5968 and on Twitter @getahn.

Envision Cayce

Housing and units

Cayce Place & CWA replacement units: 968

Affordable housing units: 358

Market-rate units: 1,064

Non-residential uses

Retail (grocery, pharmacy and more): 127,700 square feet

Institutional and office (existing partners, plus new library and education facility): 161,000 square feet

Mini parks and open space: 11 acres

SOURCE: MDHA

A new era for Nashville public housing

Three months ago, the U.S. Department of Housing and Urban Development approved MDHA's application to convert these 14 public housing properties into Section 8 project-based assistance:

Andrew Jackson Courts

Cheatham Place

Cumberland View

Edgefield Manor

Edgehill Apartments

Gernert Studio Apartments

J. Henry Hale Apartments

Levy Place

Madison Towers

Napier Place

Neighborhood Housing

Parkway Terrace

Sudekum Apartments

Vine Hill Towers

By March 2016, MDHA will submit detailed applications to HUD for the following properties:

Carleen Batson Waller Manor

Cayce Place

Hadley Park Towers

Historic Preston Taylor Apartments

Parthenon Towers

Vine Hill Apartments

SOURCE: MDHA