EDGE Board Approves Five Projects Totaling More than $465 Million in Capital Investment in Memphis/Shelby County
The EDGE Board of Directors approved five projects for economic development incentives at the June EDGE board meeting. The five projects are: Broad Avenue Tower Mixed Used Development Residential Payment in Lieu of Tax (PILOT), Thrive at The Park Residential PILOT, Southgate Center Community Builder PILOT, Hollywood Feed Jobs PILOT 2nd Amendment, and Parkside at Shelby Farms Tax Increment Financing (TIF).
“Combined the total capital investment for all five projects is close to half a billion dollars with more than $123 million being spent locally with city and county certified minority/women owned businesses, an EDGE record for projects approved at a single EDGE Board meeting,” said Reid Dulberger, EDGE President/CEO. “Each of these projects represents the impact that smart economic development can have on building a stronger community in terms of jobs, wages, and neighborhood reinvestment.”
Addressing the need for fresh food options and new investment in South Memphis, the EDGE Board approved the Southgate Center project for a 15-year Community Builder PILOT. Located at 1897 South Third Street, the project site is home to a largely vacant retail shopping center that once housed a nationally recognized grocery store. The project area is located in a New Markets Tax Credit eligible census tract where the median household income is $34,600 with 52% of the 55,000 area residents living in or below poverty. Financial assistance was requested in order to help secure a large-scale grocer to backfill the now vacant grocery space, improve access to healthy food options in the area, remove blight, accelerate renovations of the building, and improve the overall neighborhood quality of life consistent with the Community Builder PILOT policies. The project will include a 31,000 square foot supermarket, two junior retail anchors, and five small retail shops. The developer, Union Realty Company General Partnership, will invest more than $6.8 million in the project. The project is supported by the South Memphis Alliance and The Works, Inc.
The EDGE Board also approved two 15-year Residential PILOTs, the $51 million Broad Avenue Tower Mixed Use project developed by 3D Realty and the $22.3 million Thrive at The Park project developed by Makowsky Ringel Greenberg, LLC. Combined the multifamily residential developments will offer nearly 600 new apartment units. Both projects are supported by the Binghampton Development Corporation. The residential projects will help further reinvigorate the Binghampton area with new multifamily housing, retail, and small office space. These developments follow in the footsteps of the nearly $2 million of EDGE Inner City Economic Development (ICED) Loans distributed in the area along with the newly opened, EDGE-supported Binghampton Gateway Center which boasts a 16,000 square foot Sav-A-Lot grocery store and additional retail space.
In addition, the EDGE Board approved Parkside at Shelby Farms for participation in EDGE’s Tax Increment Financing (TIF) program. Located adjacent to Shelby Farms Park at 6678 Mullins Station Road, Parkside at Shelby Farms is a 60+ acre development comprised of approximately 1,400 multifamily residential units in mid-rise buildings, 33,000 sq. ft. of retail or other commercial space, and a 130-room hotel. TIF funds will be used to pay for approximately $72 million of on-and-off site public improvements including roads, sewers, electric, gas, signage and structured parking. Included will be $12.3 million for Shelby Farms Parkway. Developed by Memphis-based Parkside at Shelby Farms LLC, this $375 million project is currently the largest single, private for-profit project in Memphis and Shelby County. The project was approved for a 20-year EDGE TIF. Parkside must now be approved by the Shelby County Commission and Memphis City Council.
Finally, EDGE approved a 2nd Amendment to the Hollywood Feed headquarters and national distribution center Jobs PILOT project, at 1339 Warford. The company’s success has caused the project to grow to 108 new jobs (from 31) averaging $49,500 a year excluding benefits (from $47,400). Capital investment has increased to $10.2 million (from $3.2 million).