in this issue:
Le Bonheur Expansion & Medical District
Developments
Court Square CenterMoving Forward
More DowntownHotel Rooms
Pinch Projects
Design & DevelopmentClass Offered
Development Briefs New DowntownBusinesses
Available PropertySpotlight
Upcoming MeetingSchedule
CCC ContactInformation
The Downtown Developer
is a bi-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.
Le Bonheur Plans $235 Million Expansion
Le Bonheur Children's Medical Center is in the conceptual design phase of major plans to renovate and expand its current hospital facility to almost 1,000,000 square feet.
The $235 million project includes acquiring and demolishing the adjacent Midtown Mental Health Institute (MMHI) to make way for a new 12-story hospital tower. The new hospital tower will accomodate 230 beds - including dedicated units for intensive care patients - a revamped 14-room surgical suite, and a three room cardiac and radiology suite. The Emergency Department, which treats more than 70,000 patients annually, is being enlarged to handle expected patient volumes beyond 2014.
After construction of the tower is complete, the eastern two-thirds of the existing hospital will be demolished to allow space for construction of a new 490-space parking garage, a new patient entrance, and outdoor green space that could serve as future hospital expansion space if the need arises. The new entry to the hospital will face Adams for better patient accessibility.
New construction will add 570,000-sf of space to the campus, and 130,000-sf of existing space will undergo renovations.
Demolition of MMHI is expected to begin this fall with a 2-year time frame. MMHI will relocate to a new $27.6 million, 75-bed facility that will be constructed on the former UT Bowld site. Construction of Le Bonheur's new facility will start in the summer of 2007 and is expected to be complete in 2010.
Medical District Momentum
Including the Le Bonheur expansion and new MMHI facility, more than $1.8 billion in new medical facilities are planned for downtown. These various medical institutions have worked together closely to ensure that growth within the medical district is cohesive.
District stakeholders have also examined nearby underused areas that could be redeveloped to serve as improved residential neighborhoods. New living facilities around the medical district would benefit the increased staff needed to support medical district growth.
For more information on new development in Downtown Memphis, visit the Center City Commission's online downtown projects listing.
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Court Square Center Project Moves Forward
One of the most aggressive historic renovation projects in Downtown's history was awarded a 10-year PILOT at the Center City Revenue Finance Corporation meeting on Tuesday, September 20, signaling the start of its highly anticipated construction process.
Court Square Center is a $40 million project that will rehab three landmark historic buildings in the core of Downtown: Rhodes Jennings, Lincoln American Tower and Court Park Annex buildings. The project is located along Main Street between Jefferson and the newly renovated Court Square. When restored, the three buildings will be combined to offer 79 residential units and more than 30,000-square feet of commercial space.
Over the past couple of years, project developers have stabilized the buildings, secured funding, and have worked to find tenants for the building. To date, 50% of the commercial space has been pre-leased. Ground floor tenants will line Main Street and Court Square, an area that has seen much growth over the past year.
Construction is expected to be completed in mid-2007. of 2007.
For more information on any of these properties or development opportunities in Downtown, contact Andy Kitsinger.
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More Hotel Rooms Welcome Downtown Guests
The historic Kress Building, home to the first Kress retail business in the nation, has reopened as a 47-suite annex of the Marriott Springhill Suites. The renovated four-story Kress, which was built in 1896, also has five meeting rooms, two board rooms, and ground floor restaurant space that opens onto Main Street and across from the newly renovated Court Square. This $6 million renovation project added 50,000-sf of space to the Marriott Springhill Suites. The Center City Revenue Finance Corporation awarded the property a 15-year PILOT last year.
The 18-year old Radisson Hotel, which stands across from AutoZone Park, was purchased last year for $15 million. The new ownership has invested $8 million to convert it into a more upscale Doubletree Hotel. The Doubletree now offers 280 rooms and a TGI Friday's on the ground floor.
With the addition of the Kress Building and Doubletree rooms, the downtown hotel guest room inventory is now at 3032 rooms. Three new hotel projects are in the works that will add another 460 rooms to downtown over the next few years.
A $40 million, 201-room Westin Hotel is in the initial planning stages. The hotel will be constructed on Lt. G W Lee across from the FedExForum. In conjunction with the Westin, construction is planned for a 536-space parking garage adjacent to the hotel with 14,000-sf of ground floor commerical and retail space.
Plans are also in the works to transform the Chisca Hotel into a 150-room Hilton Garden Inn and to construct a new 110-unit Hilton Homewood Suites on surrounding property as well. The two hotels, as well as a residential project, are part of an $80 million plan to transform the four blocks bounded by Linden, Main, Pontotoc and Second.
For more information on current projects in Downtown, visit CCC Current Projects List.
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Pinch District Projects
The owners of 429 North Main are renovating the 4,300-sf building into office space. The owners received a 10-year PILOT from the Center City Revenue Finance Corporation and a $49K development loan from the Center City Development Corporation. Renovation costs are estimated at $600K and the project is expected to be complete by the end of 2005. Two office tenants have been secured for the building.
Owners are also in the intial design phase on plans to construct 39 condos in the surface parking lot surrounding the building.
Also planned in the Pinch is construction of the $6 million, 24-unit Harbor Lights condo project on Front Street at North Parkway. Units in Harbor Lights are selling from $211K to $329. Construction is expected to start soon and more than 75% of the units have sold. (For purchasing information on Harbor Lights condos, contact Tammye Morgan at Barnett Nayor, 901.578.9307).
Owners of the Turning Pointe, the mixed-use development on the corner of Front and Auction, have announced plans to transform the building into 8 condo units. These units are selling from $143K to $205K for lofts, 2 bedroom units, and townhomes. (For sales information, contact Annette Sharpe at Henry Turley Realtors, 901.521.1593.)
Access to the Pinch and northern parts of Downtown will be rerouted as construction begins this fall on the $6 million North Parkway realignment project. When complete, North Parkway will connect to Auction at Danny Thomas and Jackson will be realigned with Mill Avenue.
More development activity in the Pinch is expected to occur once the future of the Pyramid Arena is determined. Preliminary plans for the Pyramid are expected to be announced within the next couple of months.
For more information on current projects in Downtown, visit CCC Current Projects List.
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Real Estate Development Class Offered
The Center City Commission's W/MBE Committee in conjunction with The NeighborWorks Training Institute of America, a national organization of community developers, will host an introductory class on the development process. The class will be held at the Memphis Cook Convention Center on Friday, October 28th from 9 am - 5 pm, and Saturday, October 29th from 9 am - 3 pm.
The program is designed to give the aspiring developer a basic understanding of the Development Process. Tuition for the class is $50 and training materials will be provided.
Space is limited. Those interested in participating should contact Jerome Rubin, CCC Manager of Diversity Outreach, 901.575.0581.
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Development Briefs
Construction on the new $6 million Cotton Museum is nearing completion. The museum will be located inside the Cotton Exchange Building at Front and Union and is expected to be open for visitors in November.
Henry Turley Company announced that 124 apartment units in The Lofts at Tennessee and GE Patterson will be converted into 115 condominium units. Prices for the condos will range from $140K to $400K. Click here for more info.
John Moore, former VP for Northwest Airlines, has accepted the position of President and CEO of the Memphis Regional Chamber. Moore's stated goals are to bring more than 8,000 new jobs to Memphis by 2006 and to maintain the city's record of securing more than $1 billion in economic development each year.
The Center City Commission received approval of its South Forum Redevelopment Master Plan from City Council on Tuesday, September 20. The plan recommends redevelopment strategies and objectives for 150-acres south of the FedExForum. Click here to view the Executive Summary of the South Forum PlanThe Echelon at the Ballpark apartment complex, which is adjacent to AutoZone Park, recently sold for $39.5 million at nearly $110K per unit -- a price industry observers say is a record amount for Memphis. Florida-based Echelon Communities sold the 361-unit complex to Forum Residential Partners LLC of Jackson, MS.
A fire destroyed the downtown Blue Monkey Restaurant on Sunday, September 18. Owners are planning to rebuild.
More than $3 million in streetscape improvements on Union and Monroe are progressing as planned. The improvements, which are funded through the Center City Commission, include new sidewalks, alleys, streetlights and landscaping. The improvements are expected to be complete in early spring 2006.
Reports continue to show that the Downtown area has the lowest reported crime in the city. The number of reported incidents in downtown has decreased 3.46% over the past year.
Uptown Square, the $35 million redevelopment of Lauderdale Courts, won the International Downtown Association's 2005 Downtown Acheivement Merit Award in the category of Social Issues. This award recognizes projects that that have successfully addressed particular concerns of the downtown and the community. Uptown Square is also a finalist for the national Development of Excellence Award from the Urban Land Institute's Atlanta District Council.
Seventeen new single-family homes in a new community called The Ivy, have sold in the South End area. Developer Kerr Tigrett developed the $6.8 million project and within days sold the lots for the houses. The houses will line South Front Street near Carolina.
Riverfront Development Corporation has announced that the extension of the Riverwalk from Ashburn Coppock Park to Martyrs Park is underway. Construction began in August and is scheduled to be complete around the end of the year. Construction began in August on the Mud Island Roundabout and is scheduled to be complete in February 2006. This will be the first roundabout in Memphis and will help accommodate traffic that will be generated by the anticipated development on Mud Island south of Auction Avenue.
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New Downtown Business
MTV Coffee, 1299 Madison Ave, 272-5757
Down to Earth Barber Salon, 10 N Main, 406-4067
Quetzal, 664 Union Ave, 521-8388
South Philly Cheesesteak, 250 Peabody Pl Ste 105, 527-0007
Celebrity's, 340 Beale St, 576-8388
Memphis Business Academy, 204 N Second St, 870-7878
McAlisters (as of Sept 21), Ground floor of One Commerce Square, 522-9123
Coming soon to Downtown:
Sgt. Jalepeno's Tortilla Company, 100 Adams
El Patron Mexican Restaurant, 117 Union
Italian Restaurant in the former Cupboard 2 Restaurant on Madison
Quizno's will reopen in its former location in the Marriott Springhill Suites on Main Street
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Available Property Spotlight:7 North Main
A commercial space is available for lease near the prime corner of Madison and Main Street. The property has 3,000-square feet of ground floor space and a 2,500-square foot basement.
Located in a high traffic area between the Kress Building and WellWorx Health Club, this property offers ideal retail space with large display windows and a rear entrance for deliveries. Improvements are underway in the alley behind the property. The building has new floors, new heating and air, and two bathrooms.
For more information, contact Niles Grosvenor at 901.527.2277.
To review other available properties in Downtown Memphis, click here.
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Upcoming Meeting Schedule
Center City Commission Board: Thursday, September 22 at 12 noon
Design Review Board: Wednesday, October 5 at 5 pm
Center City Revenue Finance Corporation: Tuesday, October 11 at 9 am
Center City Development Corporation: Wednesday, October 19 at 9 am
The above meetings will be held at the Center City Commission, 114 North Main Street. Meeting times and dates are subject to change. For more information, contact Dawn Vinson at 901.575-0555.
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Center City Commission Staff
Executive
Jeff Sanford, President
Nicole Hernandez, Director of Executive Programs
Jerome Rubin, Manager, Diversity Outreach
Development
Andy Kitsinger, Director of Planning & Development
Molly Frey, Real Estate Analyst
Jaske Goff, Development Project Manager
Dawn Vinson, Development Coordinator
Lorie Chapman, Development Assistant
Financial
Jim Street, Chief Financial Officer
Marketing
Lee Warren, Senior VP of Marketing
Tiffany Amore, Marketing Administrative Assistant
Leslie Gower, Director of Communications and Editor
Sridhar Sunkara, Director of Information Systems
Stephanie Ziemba, Marketing and Special Events Manager
Operations
Janet Pfaff, Senior VP of Operations
Dave Rice, Parking Manager/Environmental Coordinator
Christine Taylor, Office Manager/Administrative Assistant
Gaston Davis, Blue Suede Brigade Manager
Blue Suede Brigadiers:
Eugene Brassel
Fannie Garner
Sally Hayes
Mika Hilliard
Charles Jackson
Bobby Parker
Richard Richardson
Johnnie Willis
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Email your questions or comments to Leslie Gower, Editor.