The EDGE Board of Directors authorized EDGE to move forward to prepare the appropriate policies and procedures for a PILOT test program for developers of multifamily residential. If these proposed policies and procedures are approved by the EDGE Board, the EDGE Residential PILOT test program will help encourage new and affordable multifamily housing within the City of Memphis and unincorporated areas of Shelby County.
This is the first foray into the residential housing market by EDGE and it has the endorsement of both City of Memphis Mayor Jim Strickland and Shelby County Mayor Mark Luttrell.
“We need to spread the wealth and encourage growth in other areas of the City in order to help increase our population,” said Mayor Jim Strickland speaking in support of the Residential PILOT program at the May EDGE Board meeting. “We need to use the tools we have to help influence change. The Residential PILOT will help us achieve our potential.”
The trial program is limited to ten projects, at which point the EDGE Board of Directors and both mayors of Memphis and Shelby County will evaluate the program to determine whether to continue, modify, or discontinue it. The program will abate 75 percent of the project’s new city and county property taxes generated for up to 15 years. Prior to PILOT approval, developers would need to secure financing, commit to building at least 25 units with a percentage of units reserved for low and moderate income individuals and families, spend an amount equal to 25 percent of hard construction and site works costs with City or County-certified MWBEs, and demonstrate the project would not happen without the PILOT incentive.
Additionally, EDGE will engage a local architecture firm to review developer proposals and advise the Board to ensure that projects are of high quality for architecture, construction, building systems, and tenant finishes relative to the area; and construction costs represented on the submitted pro forma are reasonable. EDGE Residential PILOT recipients are also required to submit Annual PILOT Performance reports and will be subject to periodic on-site inspections. Projects determined to have not met their PILOT commitments will be subject to clawbacks of PILOT benefits.