In Johnson City, Tennessee, a long-awaited transition is on the horizon for the residents of the historic John Sevier Center. This storied former hotel, which has served as home to many for decades, is soon to be replaced by a modern apartment complex located just a mile away. While the distance is short, the change represents a significant leap forward in living conditions for its inhabitants.

The Johnson City Development Authority (JCDA) was informed on Friday that LHP Capital is nearing the completion of “The Tapestry at Roan Hill,” a state-of-the-art $31 million development. This new complex has been specifically designed to accommodate the 145 elderly and low-income residents currently residing at the Sevier Center.

Alvin Nance, CEO of Development at LHP Capital, shared the progress update with the commissioners. Standing outside the nearly finished three-story Tapestry building, Nance described the scene as bustling with activity as workers focused on the final touches. He likened the moment to the exhilarating final moments of a marathon, where the end is in sight and energy is renewed for the last stretch.

Despite a minor setback caused by an elevator contractor delay, Nance expressed optimism that the certificate of occupancy would be secured by October 31. Once approved, a coordinated effort involving professional movers funded by LHP and local volunteers will facilitate the relocation process. The plan is to transition approximately eight residents each day, from Monday to Saturday, potentially completing the move by Thanksgiving.

Brenda Allen, a resident eagerly anticipating the move, expressed her excitement. “I’m excited,” she said, already informed about her new apartment’s location. “I’m ready. I’ve been packed and ready to go.”

“I’m excited,” said Brenda Allen, who already knows which apartment she’s getting up the road. “I’m ready. I’ve been packed and ready to go.”

Like other residents, Allen will continue to pay 30% of her income toward her rent, with the U.S. Department of Housing and Urban Development making up the difference between that and an established “fair market rent.” One difference will be in residents’ electric service — currently part of their 30% contribution goes to a utility allowance and the rest to their lease payment.

At Tapestry, the entire 30% will be reflected in the lease. That will make the “rent” look higher, but the all-in cost will remain the same, residents will no longer have to pay a deposit to BrightRidge, and no matter how much electricity they use there won’t be a risk of an overage charge.

Residents also had an option for a new mattress and bed frame, living room chair, floor lamp and a move-in box of cleaning supplies, all collected through a volunteer effort coordinated through the Johnson City Convention and Visitors Bureau. Nance, who’s spent close to three decades in low-income housing and community development, told JCDA board members Friday he had never witnessed that kind of outpouring in any other community he’d worked in.

Allen and the other residents will move from an 11-story building with two small elevators, no green space outside and one basement laundry room to a setup with amenities ranging from washers and dryers in each apartment and a large community room to walking trails and garden space. The Tapestry is also just a stone’s throw from a Food City supermarket on South Roan Street.

“They’ve got a dog park over there, too,” Allen said, noting that will make a big difference for her dog Caesar. “I’m gonna let Caesar run.”

Multiple moving parts that we’re hoping fit together

Nance said the three weeks of moving will be “almost coordinated like a ballet” in order to get completed before Thanksgiving. But coordination is what the entire project has taken, and will continue to take on JCDA’s end as they now move further in the stage of solidifying a relationship with a private developer to buy and renovate the John Sevier.

Robert Williams was JCDA chairman when the authority spent $4.6 million to buy the John Sevier in 2019.

“There were many times that some of us didn’t know if this was actually going to happen,” Williams said, noting the involvement of HUD, Tennessee Housing Development Authority and multiple other players.

“But with the hard work of a lot of volunteers, here we are, just a week away from hopefully having the CO on this new facility and moving our residents into the Tapestry.”

Williams said the chance to see a major block of downtown eventually redevelop and generate tax income was always a factor as the JCDA considered the project, but that the residents’ living in far from ideal housing was another.

“It’s absolutely gorgeous,” Williams said of the Tapestry. “The rooms are so much bigger than what they have, furnished with washer and dryer that they don’t have currently. And it’s going to be so much safer.”

Williams called the transition “the realization of a dream.”

“Not only for the residents, but also what happens after they move, which is the opportunity for a new economic driver, an anchor in downtown Johnson City — to have the entire block redeveloped into potentially a new boutique hotel and a family entertainment and retail space.”

Complexities remain. The city is likely to need as many economic incentives like historic tax credits as it and the developer can find, and some city contribution in the way of tax increment financing or other incentives is almost a certainty. But JCDA is working on finalizing a term sheet with a developer that would allow them to get further into what it will take to revitalize what was once Johnson City’s grandest building.

“I would think we’re talking about a two-year renovation realistically,” Williams said. “You’re basically going to have to take that hotel down to the studs, but it also includes the Downtown Centre.”

Nance said similar collaboration helped get the Tapestry project over the finish line, including Johnson City’s decision to put federal ARPA funding toward it, state low-income tax credits, help from HUD in transferring the rental contract and the Industrial Development Board setting up a payment in lieu of tax incentive.

“We could stand here and tell you how excited we are about the project, but there were a lot of people involved with helping us make this a reality,” he said.

Nance, who has been closely involved in numerous downtown revitalization projects in Knoxville, said the John Sevier has plenty of potential to be a net positive for Johnson City. That included a project at the old Farragut Hotel in downtown Knoxville.

“A local developer in Knoxville. Rick Dover, took that building, used some, historic tax credit, support from the city and with private, money that he brought to the table, renovated and brought in a (Hyatt) hotel,” Nance said.

“You talk about revitalizing part of Gay Street with this hotel, it’s been great. And I think the potential is similar for the John Sevier Hotel because of the similarities in the construction.”