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The Morristown Regional Planning Commission approved on Tuesday, by a margin of five to three, the request to change the Howell Farm property just east of the Colgate manufacturing plant from an A1 zoning to an R1 zoning for a planned residential neighborhood featuring 455 lots spread out over 147 acres.

Staff recommended zoning approval for the project to be named Morristown Meadows.

The move highlights a tension in development in the area between industrial development and the need for housing supply in a market where affordability is a problem due to unprecedented growth. This pressure has seen median home prices, according to Realtor.com, rise 20.81% in the past three years and the median rent increase 30.17% during that time period.

“We’re really excited about this project,” Tennessee Land Development Partners representative Will Stout told the Commission. “(Morristown has) 18,000 commuters (driving in daily), and that’s a lot of commuters, so we’re really excited to come in and to provide some housing that is needed.”

And while relief is needed to have housing that is affordable for area workers, there was concern expressed during the planning workshop earlier in the day regarding two issues: suitability for industrial development, and the quality of housing that is being developed in larger scale developments in the area, especially housing built by national builders.

Stout said the plan for the development is to split the area up into three phases/projects/areas and, by doing so, offer the sections to builders that he said will be “hopefully” local.

But while the name Tennessee Land Development Partners sounds somewhat regional, the developers are based out of Florida, the engineering is out of a Nashville office for an Arizona firm and Stout is based out of a Nashville office for a Texas law firm.

Stout expressed a commitment to quality that he said is shared by the developers.

“We want to see quality development,” he said. “I mean we’re committed to that. We want to see it go up right. We would like to be a repeat player in the area. So the only way to do that is to provide quality development. So we’re committed to that. That’s part of the reason we wanted to subdivide, to be able to talk to locals and figure out who does good construction and figure out how to make that happen. We’re willing to hear anything the city would like us to do and to listen and try to be a good partner. I think we have a great team.”

The engineering firm, Bowman, has done preliminary design for the project and shows features like an integrated park, sidewalks and open spaces.

There has also been some geological surveying accomplished and Stout said the developers feel confident about working around the karst/limestone terrain in the area that can occasionally result in sinkholes.

Morristown Area Chamber of Commerce President Marshall Ramsey, in his capacity as secretary for the Industrial Development Board of the City of Morristown, submitted a letter expressing interest in the property as a potential site for industrial development.

The IDB argued in the letter that the property location, adjacent to Colgate-Palmolive in the Morristown Airport Industrial District is more suitable for industrial recruitment.

“It is important to understand that this area was developed for industrial use,” the letter said. “And remember, the subject property, years ago, was at the closing table for an industrial project until the owners suddenly increased the price. Surrounding our jobs and tax creators like Colgate with conflicting use may cause issues in the future for this industry. While residential development is needed, is allowing it adjacent to heavy industrial zoning the appropriate place?”

In a sense, the city has already decided it is an appropriate place for residential development; Morristown approved a similar sized development, Millstone Village, that is currently being built out by national builder D.R. Horton, just to the west on the other side of Colgate-Palmolive.

The IDB acknowledged that more affordable housing was needed for the local workforce and that at current valuation, the land at the proposed residential development is too expensive for industrial development based on the potential to correct geological deficiencies.

“Upon a desktop review, aerial photos of this property show a minimum of 52 visible depressions, and it is well documented that this side of town has, historically, had many sinkhole issues,” the letter said.

The letter concludes with a plea for affordable workforce housing and a reminder of the tax base that industry provides.

“The board also encourages you to examine the types of houses being built in these new developments,” it said. “We understand that all housing is a benefit to our community, but it is imperative that affordable workforce housing for the many industrial and commercial workers in our area be a focus. We recognize the definition of affordable housing has changed; therefore, the community relies on local government leadership to guide residential, as well as all development in the best direction for the residents and businesses, alike.

“Lastly, just a reminder that our community is one of very few in the state of Tennessee that collects more of its tax base from commercial and industrial use than residential. Our community has an obligation to consider concerns and issues of commercial and industrial users. Morristown and Hamblen County have a good business-friendly reputation which needs to be maintained to the best of our ability.”

Having been approved by the Planning Commission in the rare non-unanimous vote, the zoning change request will next be considered by the Morristown City Council.