Developers of Union Row, a planned $950 million Downtown project, will be seeking somewhere between $70 million and $100 million in TIF money, the developer said Tuesday.
Kevin Adams of developer Big River Partners and Jennifer Oswalt of the Downtown Memphis Commission (DMC) said the exact size of the TIF (tax increment financing) is still being finalized but would be between those two figures. That money would be used for infrastructure improvements on the sites along Union Avenue and Danny Thomas Boulevard.
(Editor’s note: Not sure what a TIF is? We’ve got you covered.)
Adams said the site, which gives the city and county about $50,000 each year in property taxes now, would provide $3.2 million in taxes annually throughout the life of the TIF. That’s not including the money — estimated at about $9 million — that the property would contribute to pay down the debt issued to fund the public infrastructure improvements.
Several council members — including Martavius Jones, someone who is sometimes critical of tax incentives — voiced support for the project, saying it would be worth the investment.
Adams said the project isn’t seeking a PILOT (payment-in-lieu-of-taxes) but that could change depending on what type of tenants the development is able to attract for its hundreds of thousands of square feet of office space. He said a request for a PILOT would depend on if that’s what was needed for a tenant to move to Memphis.
Adams has previously said he’s talking to both Memphis-area and out-of-town prospective tenants.
The project also falls into an Opportunity Zone, part of a new community development program created with last year’s federal tax bill. Opportunity Zones provide tax benefits to those who invest in them. Oswalt said Union Row could be one of the first projects in the Downtown-area Opportunity Zone.
The project has attracted out-of-town capital, too. David Dlugolenski of Sagestone Partners, one of Big River’s partners in the project, said his firm was attracted by Memphis’ vibe.
Dlugolenski said the city’s current energy is “reminiscent” of Nashville, Atlanta and Austin before those cities exploded in population and economically.
“It seems like it’s the right time for Memphis,” he said.
Originally Published on November 20, 2018 at 11:37PM
Article published originally via Google News https://www.bizjournals.com/memphis/news/2018/11/20/union-row-to-seek-70m-to-100m-in-public-money.html