Lenoir City continues to ‘push pause’ on development

Regulations around building new apartments tightened by City Council

Adam.Delahoussaye-news-herald.net

Lenoir City’s City Council declared that they will continue their stalling on dense development within the city at their meeting on Monday, April 14.

The most immediately impactful section of Monday night’s agenda came in the form of Item Four, which made a consideration for revising last year’s ordinance while maintaining the intent in relation to the development of future housing.

Voted unanimously through by Council on first reading, the consideration would halt the building of apartments and multi-family housing within the corporate limits of Lenoir City — effective for one year.

Stormwater Manager Greg Buckner stated during the meeting that the main intent of the moratorium was to ensure that the proper channels had ample time to get studies done and ensure a smooth process across the board.

While the date of effect is still undecided, City Administrator Amber Scott Kelso stated that the exact verbiage of the consideration will be altered to see it take effect as soon as the previous, similar ordinance from June of 2024 expires.

The second and final reading of the proposal is anticipated to be on the agenda for Council’s meeting on April 28. A vote on the first reading was passed unanimously.

THE PRESSURE’S ON? AVENUES OF IMMUNITY

As the greater Knoxville area reaches a resident capacity, Lenoir City and the greater Loudon County area are being pressured into a rapid growth cycle that most of its residents and city officials seem averse to.

This move would curb that, at least to some extent, as city officials juggle a booming population potential with residents wary of losing their quaint county feel.

The moratorium is effectively a continuation of a similar one passed in June of 2024, reinforcing the addition of much stiffer language and less wiggle room for exceptions made in a revision of the moratorium this past December.

While the exceptions for development are roughly similar, three out of the five must be met in order for a development to be considered for approval. In an interview with The News-Herald, City Councilman Todd Kennedy said that the new regulations make it extremely difficult, if not impossible, for new multi-family housing to get the green light anytime soon. Among the possible list of exceptions are sites that have received approval of plans by the Lenoir City Regional Planning Commission or sites that have been rezoned or annexed with approval from City Council prior to the ordinance’s passing.

The ordinance also names sites given a construction permit prior to passage, as well as Lenoir City Housing Authority, on the list of possible avenues of immunity. The list of proposals these caveats are applicable to is a short one.

All that being said, there has been some pushback against the Council’s decision. During the public comment portion of the April 14 meeting, commercial real estate developer Daniel Smith voiced concerns of a lack of transparency from the Council regarding their rationale for the moratorium’s continuation.

“After reading some of the City Council meetings and listening to the minutes, I’ve not really heard the basis the city is having in terms of extending this moratorium.” Smith said. “Obviously, we have a lot of money invested in this city and a lot of property on Town Creek and we’d just like to have it on record … what is the justification of this moratorium?”

The continued restrictions are in congruence with a request for qualifications for a land use study, which would be conducted through the Economic Development Authority. Council member Kennedy said the study is the city’s way of gathering public input to make adjustments on outdated policies in need of an update as the city faces unprecedented growth.

In his interview, Kennedy also stated that the moratorium’s extension or more stringent revisions aren’t directed at any one development or group in particular.

‘WE NEED TO WAIT AND SEE WHAT HE DATA SHOWS’

Kennedy ran on a platform in support of the moratorium during his campaign for City Council back in 2022. He made it clear that until a comprehensive examination of the relationship between city systems and the influx of new housing was done, he wouldn’t support or approve any additional development.

“We just wanted to push pause on high-density stuff until we could get a glimpse of a bigger picture — kind of where we are and what we want to look like going forward.” Kennedy said.

The tentative budget for Lenoir City’s 2025-2026 fiscal year will include funding for a land use study, set to take place in the months following the budget’s approval. Kennedy stated that a continuation of this ordinance specifically is dependent on what the results of that evaluation looks like a year from the date this ordinance goes into effect.

“It could go either way, really,” Kennedy said. “There’s no pre-conceived notion of extending it or not extending it.

“We just really need to wait and see what the data shows.”

The ordinance also states that a Comprehensive Land Use Plan is to be carried out “to best achieve the needs of the City and Maintain the Health, Safety and Welfare of the Citizens.”

The language of the ordinance also specifically addresses multi-family style housing, such as apartments.

Subdivisions, neighborhoods and single- family homes should see no hindrance to their development should this ordinance pass on second reading.