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South Memphis Renewal Community Development Corporation

ID: ED20190902
Inner City Economic Development Loan
County Comission District: | City Council District:

Summary

Jeffrey Higgs, on behalf of the South Memphis Renewal Community Development Corporation (SMRCDC), was approved for a $25,000 Inner City Economic Development (ICED) Loan to assist with construction of the 38126 Innovation & Technology Center (The 38126 Center) at 991 and 0 Mississippi Boulevard. Total project costs are expected to exceed $670,000.

The SMRCDC is a 501(c)(3) Nonprofit Corporation registered in Tennessee. The organization focuses primarily on transforming vacant land into affordable housing. SMRCDC also pursues commercial revitalization along key targeted South Memphis corridors. The organization is the court appointed conservator of the Aretha Franklin birthplace and operates the YouthBuild apprenticeship program to train 70 people ages 16 to 24.

The 38126 Center will convert an existing vacant 3,948 square foot building and add a 6,942 square foot expansion, designed by Self Tucker Architects, to create 10,890 square feet of retail, commercial and office space at the corner of Mississippi and Walker. The center is rooted in the need to fill the digital divide, improve health and wellness services, and close the job-skills gap. Proposed tenants for this technology-training anchored center are:
• Aperion Global – Technology Language Training and Certification Programs
• Brave Dog Games – Gaming Lounge and Video Game Development Center
• Well-Quest Wellness Center – Tele-Health Virtual Patient Care
• 2 Friends & A Chef Coffee – Coffee Chop
• Tri-State Defender Podcast Studio – Broadcast Quality Studio
• Crucial Music Studios – In-Person Interface for Online Music Licensing Service
• Rickey Anderson Entertainment Law Center – Entertainment Industry Training
• Benjamin Crump Social Justice Institute – Leadership Training and Certification Programs
• The Urban Incubator – Small Business Development Space

The applicant committed $70,000 of its own cash reserves to this project. Additionally, SMRCDC has received a $15,000 grant from Community LIFT and a $30,000 grant from the City of Memphis. A grant application has been submitted to the US Department of Health and Human Services requesting $500,000. And, a loan in the amount of $500,000 is being pursued based on annual potential gross rental income estimates in excess of $700,000.

In 2014, the EDGE Economic Development Finance Committee approved a $20,000 ICED Loan to make interior and façade improvements at 991 Mississippi. These improvements were completed but the space was not subsequently occupied. The owner has agreed to sell the property to SMRCDC for this new project. Funds related to this application will be used for the expansion of space, not on the existing building. ICED funds will not be disbursed until the project is complete and a certificate of occupancy is issued.

Loan Term:

3

Interest Rate:

Not applicable

Projected New Jobs:

20

Projected Retained Jobs:

Not applicable

Average Payroll:

Not applicable

Loan Amount:

$25,000

Loan Use:

Not applicable

Total Projected Capital Investment:

$670,000
Real Property:
Not applicable

Acquisition:
Not applicable

Construction:
Not applicable

Renovation:
Not applicable

Machinery & Equipment:
Not applicable

Furniture, Fixtures, Office:
Not applicable

Equipment:
Not applicable

Fees & Soft Costs:
Not applicable

Permanent Working Capital:
Not applicable

Miscellaneous:
Not applicable

Approved

9/4/2019

Closing

Not approved

South Memphis Renewal Community Development Corporation

991 Mississippis Boulevard, Memphis, TN 38126