To be heard July 10, 2025Agenda Item No. 20

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Staff Recommendation

Approve the addition of the H (Historic Overlay) district because it is consistent with the intent of the district and recommended by the Historic Zoning Commission. The C-G-2 (General Commercial) district would be retained.

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PURSUANT TO THE CITY OF KNOXVILLE ZONING ORDINANCE, SECTION 16.1.E, ALL OF THE FOLLOWING CONDITIONS MUST BE MET FOR ALL REZONINGS:

THE PROPOSED AMENDMENT SHALL BE NECESSARY BECAUSE OF SUBSTANTIALLY CHANGED OR CHANGING CONDITIONS IN THE AREA AND DISTRICTS AFFECTED, OR IN THE CITY/COUNTY GENERALLY:
1. The subject property contains a one-and-a-half story Craftsman bungalow built circa 1925 that was designed and built by the applicant's grandfather. The applicant is requesting the H (Historic Overlay) zoning to protect the house from demolition and to encourage its reuse as a commercial structure that contributes to the historic character of the corridor. The Historic Zoning Commission (HZC) reviewed the H overlay application at their June 2025 meeting and recommended approval. More information on the house's architectural significance and history can be found in the HZC staff report and designation report in Exhibit B.
2. This section of N Central Street is at the edge of the historic Oakwood neighborhood. It has experienced the demolition of a few historic sructures nearby due to the gradual transition to more intensive commercial and industrial uses in this area, though many historic commercial and residential structures were retained and are currently housing businesses along the corridor. The H zoning designation does not change the land use of the property or the allowed uses, but it would help preserve the building despite changing conditions nearby.
3. There are two National Register Historic Districts to the south of the subject property on N Central Street. The Happy Holler Historic District was listed in 2014, and the Emory Place Historic District was listed in 1994, with boundary increases in 2023 and 2025. The historic designations on this commercial corridor have contributed to adaptive reuse of buildings and the revitalization of the area. There have also been nearby rezonings to add H landmark overlays, including one in July 2024 at 3030 N Central Street.

THE PROPOSED AMENDMENT SHALL BE CONSISTENT WITH THE INTENT AND PURPOSE OF THE APPLICABLE ZONING ORDINANCE:
1. The intent of the H overlay is to preserve and protect historic structures which serve as visible reminders of the history and cultural heritage of the City of Knoxville and to regulate the rehabilitation and demolition of these structures. The district is not intended to regulate land use. The HZC is responsible for reviewing the historical significance of H overlay requests using federal preservation standards that are outlined in Section 8.5.E of the zoning code. The HZC decided that the application meets these standards and recommended approval of the designation at their June 2025 meeting.
2. The existing C-G-2 (General Commercial) district would be retained. The C-G-2 district is intended to provide a heterogeneous mix of retail, personal service, office, and residential uses within and along Knoxville's commercial nodes and corridors and is intended to promote mixed-use development in a pedestrian-oriented environment.

THE PROPOSED AMENDMENT SHALL NOT ADVERSELY AFFECT ANY OTHER PART OF THE CITY, NOR SHALL ANY DIRECT OR INDIRECT ADVERSE EFFECTS RESULT FROM SUCH AMENDMENT.
1. As mentioned previously, the H overlay does not affect land use of the property and, thus, will not adversely affect nearby properties. It requires any exterior rehabilitation, new construction, and demolition within the overlay to be reviewed by the Historic Zoning Commission for compliance with the design guidelines found in Exhibit B. The overlay would only affect the owner of the property, who is requesting the rezoning with its associated design guidelines.

THE PROPOSED AMENDMENT SHALL BE CONSISTENT WITH AND NOT IN CONFLICT WITH THE KNOXVILLE-KNOX COUNTY GENERAL PLAN AND ITS COMPONENT PARTS, INCLUDING ADOPTED SECTOR PLANS, CORRIDOR PLANS, AND RELATED DOCUMENTS.
1. The Central City Sector Plan and the City One Year Plan designation for the subject property is the Central Street Corridor Mixed Use District, which encourages a mix of residential, office, and commercial development, and this aligns with the current C-G-2 (General Commercial) zoning that will be retained. The Sector Plan encourages pursuing historic zoning designations along N Central Street and other nearby historic commercial areas.
2. The proposed rezoning is consistent with the General Plan's Development Policies 6.6 and 6.7, which encourage the reuse of underutilized historic resources and the use of historic zoning to protect neighborhoods.

ADEQUATE PUBLIC FACILITIES ARE AVAILABLE INCLUDING, BUT NOT LIMITED TO, SCHOOLS, PARKS, POLICE AND FIRE PROTECTION, ROADS, SANITARY SEWERS, AND WATER LINES, OR ARE REASONABLY CAPABLE OF BEING PROVIDED PRIOR TO THE DEVELOPMENT OF THE SUBJECT PROPERTY IF THE AMENDMENT WERE ADOPTED:
1. The subject property is in an urbanized area along a minor arterial street with the utility and road infrastructure to support any use of the property under its current C-G-2 zoning, which would not be impacted by the addition of the H overlay.