Downtown developers commit to help homeless with dollars

But the level is far below what Councilwoman Brenda Gilmore wanted

Email | Print By Richard Lawson

Developers with the biggest downtown projects on the drawing boards apparently could be contributing upwards of $30,000 to help combat homelessness in downtown.

Developers of the Signature Tower and Westin have committed to about $10,000 each. The developer for The Crown likely will contribute $10,000 as well. The commitments came after a meeting on the morning of Jan. 16, the day of the council meeting that night in which two downtown projects – Signature Tower and the Crown office building – were approved on third and final reading.

But advocates for helping the homeless wanted more. "I asked them for $300,000," said Councilwoman Brenda Gilmore. Gilmore has been seeking ways of creating a consistent flow of funds to combat homelessness. "I was a little disappointed that they came back with $30,000. I think $30,000 is almost shameful, especially considering that the developments total almost $1 billion."

Although the financial commitment was much lower than she wanted, she said an upside is that James Weaver, an attorney with Waller Lansden Dortch & Davis, committed to act as a leader in working with the development community in helping with the homeless cause. Weaver represents developer Tony Giarratana on the Signature Tower and The Barber Group on the Westin.

Gilmore and Councilman Mike Jameson are considering legislation that would tie development to a low-income housing and affordable housing fund. How that might happen hasn't been decided. But the funds would be split equally between the Affordable Housing Trust Fund, which is being created, and homeless housing through Mayor Bill Purcell's Commission to End Chronic Homelessness.

An idea Gilmore had was to seek 1 percent of the total cost of a project. On Signature Tower, that would be $3.5 million. That would be akin to an impact fee, and it's not likely allowable under state law, leaving aside what developers might think of it.

After the meeting, homeless advocates thought they had a commitment from the developers' representatives to ask their clients for a $300,000 gift toward the mayor's commission, according to a memo from the Nashville Homeless Power Project recapping the meeting. Weaver corrected that in a memo of his own, writing that $300,000 was a "campaign goal."

One observer noted that the group was lucky to get $30,000 given the lateness in which it pressed for contributions from the developers. A view that has been circulating is that Nashville Homeless Power Project was attempting to muscle the developers with the threat of pushing for a deferral of projects if they didn't step up.

In a memo recapping that meeting, the Power Project said it would "communicate willingness not to defer ordinances by the late afternoon." In a highly unusual occurrence at the public hearing for the Westin on Jan. 2, homeless people spoke against the project. It is up for third and final reading next month.

Gilmore said there wasn't any such deal on her part. Tom White, an attorney with Tune Entrekin & White representing The Crown developer Barry Real Estate Cos., said he never got any impression from Gilmore or Jameson there was a quid pro quo. White said both just wanted to start a dialog with the homeless group.

Weaver's memo said he discussed the request for contributions with the developers. "Both developers were interested in your efforts and willing to help in the campaign," Weaver wrote. "Both understand the issues and agree that the private sector can and should partner with the public sector on a solution. Each developer has committed to make a donation associated with the groundbreaking ceremony on their project."

There are contingencies, of course. Signature Tower has to get 261 of its 435 units pre-sold before it can begin. Westin is contingent on passing third reading as well as passage of an historic zoning overlay for Lower Broad.

"I anticipate that the total contribution from both clients would be around $10,000 each," Weaver wrote. White said his client is considering the level of funds it would give under the same conditions – at groundbreaking. The other condition by Weaver and White is that the money go to a qualified 501(c)(3) not-for-profit entity related to developing low-income housing downtown.