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Council approves tax break for Alexander Inn assisted living center

Posted at 8:34 pm October 22, 2012
By John Huotari 4 Comments

Alexander Inn

The Oak Ridge City Council has approved a 90 percent, 10-year tax break for two development companies who want to convert the historic but rundown Alexander Inn into an assisted living center.

The Oak Ridge City Council has unanimously approved a 90 percent, 10-year tax break for a project to convert the rundown Alexander Inn into an assisted living center.

Officially known as a payment-in-lieu-of-taxes agreement, or PILOT, the tax break will be used to build a new road for cars that now drive through the three-acre site, move a storm sewer under the two-story building, and help remove asbestos, among other things.

The PILOT was endorsed in a 6-0 vote by the Oak Ridge Industrial Development board on Oct. 11. The proposal to reuse the historic hotel is also supported by members of the Oak Ridge Heritage and Preservation Association, which has lobbied to save the building for more than a decade.

Also known as The Guest House, the Alexander Inn has been unused for more than two decades. In recent years, it has fallen into disrepair, the victim of animals, vandals, and weather.

City code enforcement efforts against the property date back to 2005, Oak Ridge City Manager Mark Watson said during a Monday night City Council meeting.

Even with the temporary tax break, city officials said, Oak Ridge and Anderson County will continue to receive at least as much in property taxes as they do now, or about $3,900 per year each.

The project has been proposed by Family Pride Corp. of Loudon and InSite Development Corp. of Knoxville. Family Pride has said the project is not economically feasible without the tax break.

Construction of the $4.5 million, 60-unit assisted living center, which would include a wing for patients with Alzheimer’s and dementia, could take roughly a year.

The Alexander Inn developers have said they are ready to immediately start remediation and rehabilitation work once Council approves the PILOT.

The Alexander Inn once hosted such dignitaries as physicists J. Robert Oppenheimer and Enrico Fermi, and Secretary of War Henry Stimson.

Filed Under: Business, Government Tagged With: Alexander Inn, assisted living center, Family Pride Corp., InSite Development Corp., The Guest House

Comments

  1. Myra Mansfield says

    October 22, 2012 at 9:57 pm

    Awesome! This is exciting.

    Reply
    • John Huotari says

      October 25, 2012 at 9:37 am

      I’ve been periodically reporting on the Alexander Inn for about eight years, mostly in relation to code enforcement efforts and initiatives to save the property. This is the furthest I’ve seen any proposal get, and it seems that most people who are following this particular proposal are supportive.

      Reply
  2. Cactus Jack says

    October 24, 2012 at 8:36 pm

    Man I was hoping the City Club would come back too!!

    Reply
  3. roy rhea says

    November 5, 2012 at 1:23 pm

    As a nurse from Oak Ridge, I would love to work there. I went to junior high up the hill when jefferson jr was there. Played many football games under Jack Armstrong on that field. Also played for Nick Orlando there.

    Reply

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