KNOXVILLE, Tenn. (WATE) — The City of Knoxville will allocate $2 million to support the development of affordable apartments on the former St. Mary’s Hospital site.
The $70-million project from local developer Dominion Group will preserve and renovate the historic St. Mary’s hospital building to create 40 accessible apartments for seniors. Additionally, 109 new apartments with 1-, 2- and 3-bedroom units as well as 21 new townhomes will be built on the site.
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Knoxville’s Affordable Rental Development Fund will contribute $2 million to support the development. Construction is anticipated to begin in August and be completed by June 2028.
Redevelopment efforts began in 2019 when the city purchased the property from Tennova in 2019. Since then, Lincoln Memorial University opened its College of Dental Medicine on the site in 2022. The city opened its $70-million Public Safety Complex there in 2023 and the McNabb Center opened a mental health facility in 2024.
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“This collaborative plan meets two major goals for the St. Mary’s site: preserving the historic hospital building and adding much needed housing options,” said Housing and Neighborhood Development Director Kevin DuBose…