Minvilla empty despite millions of dollars; officials cite economy

It's been more than two years since Volunteer Ministry Center bought the historic 5th Avenue motel in downtown Knoxville.

Their plan is to turn it into Minvilla Manor, a 57-unit apartment complex for the chronically homeless who can't make it on their own.

"It's impossible for them to get into housing on their own, because their mental illness is so severe," said Ten Year Plan to End Chronic Homelessness Director Jon Lawler.

10 Year Plan leaders hope renovation work on Minvilla will begin in January or February. It would take about a year to complete the work.

But despite millions of dollars, the dilapidated building hasn't changed much.

It lies empty, yet filled with hopes and frustrations.

Renovations are projected to cost $7 million.

More than $5 million would come from private donations and tax credits.

And $1.7 million would come from federal and state taxes, mostly handed out by the city of Knoxville and Knox County commissioners.

So far, $3.5 million in funding is already secured, but construction has yet to begin.

"Construction costs have skyrocketed, resulting in delays and resulting in their needing more funds to complete it," Knox County Commissioner Amy Broyles said.

Another problem is the economy, which has led to fewer investors buying tax credits from non-profits.

Those tax credits make up nearly half of Minvilla's projected cost.

Tax credits have been a popular choice for investors in the past, because they use the credit to get a break on their taxes.

"You have to have an investor for those tax credits, and that market right now is simply dead," Lawler said.

And now there's a stalemate over the funding controlled by Knox County, a stalemate over how nearby residents say the homeless aid centers are changing their historic neighborhood.

"It's unquestionable that this neighborhood has developed into a mission district," said Knox County Commissioner Mark Harmon.

Harmon, Broyles and other commissioners want permanent supportive housing in District 2 to stop at Minvilla.

That prompted the commission to refuse giving Minvilla $250,000 unless 10 Year Plan officials promise they'll never build another site within a 2-mile radius.

"To say that disabled individuals cannot be housed anywhere is almost unconscionable, because it's a violation of the Fair Housing Act," Lawler said.

"Now we have this bogus legal argument over housing rights. It has nothing to do with housing rights. It's just a matter of accepting a contract. If you accept the money, you accept the terms," Harmon said.