in this issue:
Harbor TownCommercial Center
Memphis Community Renewal Program
Junior Acheivement's Downtown Renovation
Marine Hospital Auction Historic Tax Credit Program
Developers Requested for Main Street
Properties
Development Briefs Available PropertySpotlight
October MeetingSchedule
CCC ContactInformation
The Downtown Developer
is a monthly publication
produced by the
Memphis Center
City Commission
114 North Main Street
Memphis, TN 38103
phone 901.575.0540
toll free 888.303.0002
fax 901.575-0541
downtownmemphis.com
All rights reserved.
New Commercial Development in Harbor Town
Construction is underway for a new commercial center in Harbor Town. The Harbor Landing Commercial Center, a new three story structure consisting of 32,000 square feet, is under construction on vacant land next to the Maria Montessori School. The ground floor will include a 3,100 square foot restaurant space and four retail bays totaling 4,100 square feet. The rest of the building will house 20-loft condominiums with harbor and marina views.
Project costs for the restaurant and retail phase are $750,000, with total project costs estimated at $4.1 million. This project received a 7 1/2 year PILOT from the Center City Revenue Finance Corporation in August and is anticipated to be complete in November 2003.
Click here to see a map of the new development.
Memphis Renewal Community
The US Department of Housing and Urban Development has set up new tax breaks that apply to many Downtown businesses and property owners.
The Memphis Renewal Community was created to offer significant tax incentives in hopes of encouraging businesses to locate and to hire residents within certain areas of the city, and many of these areas fall within the Central Business Improvement District. Tax incentives for businesses and renovated buildings within the Renewal Community boundaries are substantial.
Click here to see the Renewal Community boundaries.
Primary incentives include:
- Tax credits of $1,500 for each employee hired within the Renewal Community, and $2,400 for each employee hired within the Renwal Community that may have special needs.
- A deduction of up to $59,000 on depreciable property such as equipment and machinery.
- A deduction of half of qualified revitalized expenditures during the first year a building is placed in service or 100% of first year expenses on a pro-rated basis over 10 years.
- The holder, for a minimum of 5 years of a Renewal Community asset acquired between Jan 1, 2002 and Dec 31, 2009, does not have to pay capital gains tax on the sale or exchange of the item.
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Junior Achievement Returns to Downtown
Junior Achievement has completed a $3.5 million renovation of the 27,000 square foot building located at 307 Madison.
The renovated property will serve as the headquarters for Junior Achievement's 17-person staff and Exchange City, a modular city where 5th-graders actively participate in the economics and government of a city. Plans to move Junior Acheivement to Downtown began 5 years ago when the organization decided to return to the original building where the Memphis Chapter of Junior Achievement started in 1955.
Hnedak Bobo designed renovations to the building which will see about 8,000 students go through the Exchange City program each year. The program teaches students about business economics and government through practical hands-on learning. Students apply for jobs in the 15 businesses in the City, design business plans, develop marketing and advertising plans, get business loans, pay bills and eventually become consumers within the City.
For more information on Junior Achievement and Exchange City, contact Ray Darby at (901) 366-7800.
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Auction of US Marine Hospital Complex
An auction is being held for three buildings in the former U.S. Marine Hospital Complex adjacent to the National Ornamental Metal Museum. The Complex was originally built to administer aid to those who became ill or injured while working on the Mississippi River.
Buildings in the auction include the Main Building, a surgical hospital built in 1937. This is a three-story brick structure with 62,300 square feet and a partial basement. The Maintenance Building, built in 1939, is a 12,450 square foot one-story brick structure formerly used as the steam laundry and storage.
The Nurse's Building, which was built in 1884 and is on the National Register of Historic Places, is a 12,450 square foot two-story structure with a wooden porch and basement.
The auction will be held at the property site (360 Metal Museum Drive) on Thursday, October 24 at 10 a.m.
For more information, contact Lori Dennis at (601) 965-6124 or lori.dennis@gsa.gov.
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Historic Preservation Tax Incentive Program
Federal Historic Preservation Tax Incentives reward private investors that rehabilitate commercial, historic properties by reducing the amount of income tax owed by the property owner.
Typically, development projects of less than $10 million may find that participating in the Federal Historic Tax Credit Program is so burdened with legal and administrative fees that participating in the program is not financially beneficial or worth the investment of time.
To help the smaller Downtown projects, the Center City Commission has teamed up with Guilford Capital Corporation, who is offering favorable terms to participate in the program.
Click here to learn more about the Guilford Capital's Historic Preservation Tax Incentive Program .
For specific questions on the program, contact John Bowman at Guilford Capital, (334) 288-3992.
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Developers Requested for Main Street Buildings
The CCDC issued requests for development proposals (RFPs) for two properties in the Main Street Demonstration Block in September. Developers are being sought for the Family Dollar Store located at 94 S. Main, and the former Perez Cigar Company buildings, also called the Vivian Buildings, located at 85-89 S. Main.
Development proposals, which were due on September 25, were submitted for both buildings. The Center City Commission's Main Street Subcommittee will review proposals, interview candidates, and ultimately select developers for the buildings by the end of October.
For more information on the Main Street Demonstration Block, contact CCC Director of Development Laura Morgan at (901) 575-0584 or morgan@downtownmemphis.com.
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Development Briefs
The Tennessee Department of Economic Community Development has given a $750,000 grant to assist with the creation of a biotech research park in the former Baptist Hospital site on Union. The Memphis BioTech Foundation plans to demolish the existing hospital to make way for a new 1.2 million square foot UT-Baptist Research Park. The first phase of construction is a $40 million, 160,000 square foot laboratory building. Construction is expected to begin sometime in 2003.
Two Habitat for Humanity houses are going up in the Greenlaw neighborhood. The Memphis Homebuilders Association recently completed construction on one house, and MLGW, Junior League, News Channel 3 and CMS Energy partnered to sponsor construction on the other house which is nearing completion. Tenants have been selected for both houses.
Construction of Bristol Gardens on Union, a new 220-unit luxury apartment community on the corner of Union and Pasadena (between Methodist Hospital and the I-240), will begin mid-October. This is a $20 million project on 3-acres of vacant land in the Medical District. A 20-year PILOT was awarded to this project from the Center City Revenue Finance Corporation in December 2001.
Six of the ten new Front Street Townhomes that are under construction and expected to be complete by November have sold, and plans call for construction of eight more townhomes by next spring. The townhomes, located at the corner of G.E. Patterson and Front, are selling at an average of $117 per square foot. For more information, call Tracie Gaia at 259-8502.
The Southern College of Optometry held a dedication ceremony for its new Eye Center at 1225 Madison Avenue in late September, marking the completion of this $7.1 million, 40,000-square foot campus expansion.
The Center City Commission is hosting the International Downtown Association Annual Spring Conference in April 2003. Over 300 Downtown delegates from around the world are expected in town for this event.
In an effort to coordinate Downtown security issues with the police, the Center City Commission's Blue Suede Brigadiers are now attending weekly roll calls at the Downtown Police Precinct.
The National Civil Rights Museum celebrated its grand opening of its $11 million expansion on September 28. The expansion includes a new exhibit "Exploring the Legacy", which focuses on the human rights struggle, and adds two buildings with an underground corridor to the museum, a plaza entrance, and a new gift shop.
The Center City Commission board of directors sponsored a resolution to support optional school designation for the new 750-student Downtown Elementary School, which is scheduled to open in fall 2003.
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Available Property Spotlight
Jack's Food Store: Main at Jefferson
Built in 1880, Jack's Food Store is located on the northeast corner of Main Street and Jefferson. This is a three-story brick building with approximately 3,700 square feet per floor plus a basement. Jack's Food Store has a lease on the first floor and basement until January 2003. The second floor is currently leased to apartment tenants and the third floor has been shelled for development. Sale price for the building is $425,000. For more information on this historic building, contact Tucker Beck at Crye-Leike Commercial, (901) 758-5670.
To review other available properties in Downtown Memphis, click here.
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October Meeting Schedule
Center City Development Corporation: Wed, Oct 16 at 8:30 am
Center City Revenue Finance Corporation: Tues, Oct 22 at 9 am
Center City Commission Board: Thurs, Oct 24 at noon
The above meetings will be held at the Center City Commission, 114 North Main Street. For more information, contact Diane Word at (901) 575-0542.
The Memphis Grizzlies Tip-Off Lunch is scheduled for October 25 at 11:45 am in the Grand Ballroom at the Peabody Hotel. Meet the Grizzlies in person, buy rare sports merchandise in a silent auction, and get fired up about the new season! For reservations, call 543-3550.
The Downtown Neighbhorhood Association will meet on Thursday, October 17. Location to be determined. Call 525-7510 for more info.
A mini-retreat is scheduled for the Center City Commission Board of Directors and its affiliated boards on October 17 at 10:15 am. Directors should meet at the CCC office for a special bus tour of future project opportunities in the CBID, followed by a lunch meeting at Pat O'Briens. Call Diane Word at 575-0561 to RSVP.
The Center City Commission will hold a Commercial Broker Breakfast on Wednesday, November 6 at 9 am at the Center City Commission office, 114 North Main Street. Call Lillian Smith at (901) 575-0555 to make your reservation.
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Center City Commission Staff
Executive
Jeff Sanford, President
Diane Word, Executive Assistant
Development
Myron Hughes, VP of Development and Planning
Brad Elmer, Business Development Analyst
Jaske Goff, Development Project Manager
Laura Morgan, Director of Development
Leigh Ann Simmons, Existing Business Specialist
Lillian Smith, Development Coordinator
Financial
Jim Street, Chief Financial Officer
Marketing
Lee Warren, Senior VP of Marketing
Leslie Gower, Director of Communications
Dena Owens, Marketing Manager
Sridhar Sunkara, Information Systems Manager
Operations
Janet Pfaff, Senior VP of Operations
Gaston Davis, Blue Suede Brigade Manager
Dave Rice, Operations/Environmental Coordinator
Christine Taylor, Office Manager/Administrative Assistant
Bonita Trezevant, Parking Manager/ Environmental Coordinator
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