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1544 Madison Partners

Project Number: 20171002
Pilot Type: Residential
Status: Approved
Parcel ID: 01703100012
County Commission District: 01 | City Council District: 05

Summary

1544 Madison Partners was awarded a 15-year Residential PILOT to construct 217 apartment units at the corner of Madison Avenue and North Avalon. The Residential PILOT will support the redevelopment of a vacant lot that was occupied formerly by BellSouth. The development will be situated on four-acres and comprised of four buildings - one four-story building, one three-story building, along with two five-story buildings. The residential project will be comprised of 217 Class A residential units, 5,000 square feet of commercial space, and 256 secured, off-street parking spaces.

All apartments will feature a modern open kitchen and living concept, nine-foot smooth ceilings, wood floors, stainless steel appliances and granite countertops with European-style cabinetry. Most units will feature an exterior covered balcony. Resident amenities will include a media lounge, 24-hour fitness center, a business center, and bike storage.

Financial assistance is needed to deliver new class-A multi-family living space to Midtown and increase population density in historic parts of Memphis. The developer has committed to reserving 32% of the project, or 70 units, for low to moderate income residents. The design was reviewed by third party architect, ArchInc, to ensure the developers’ plans are of high quality for architecture, construction, building systems, and tenant finishes relative to the area. The project is supported by the Memphis Medical District Collaborative consistent with the Residential PILOT policies.

In 2017, this property produced $29,463 in property taxes. EDGE Staff projects this will increase to $166,720 a year and $2,500,800 of local total tax revenues to be received during the PILOT term.

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In March 2019, the EDGE Board approved an amendment to the project that included increasing the total number of living units, adjusting the overall mix of units, reducing the number of units considered affordable for low-moderate income residents, and reducing the number of parking spaces. This request was made within the parameters of EDGE PILOT Policy amendment procedures. EDGE Staff projects $4.2 million of property tax revenues to be received during the PILOT term. The new benefit to 1544 Madison Partners is estimated to be approximately $8.7 million across the life of the PILOT.

PILOT Term:

15

Projected New Jobs:

Not applicable

Projected Retained Jobs:

Not applicable

Total Jobs:

Not applicable

Projected Average Payroll of New Jobs:

Not applicable

Projected Average Payroll of Retained Jobs:

Not applicable

Annual New Direct/Indirect Payroll:

Not applicable

Annual Retained Direct/Indirect Payroll:

Not applicable

Total Capital Investment:

$29,609,100
Real Property Investment:
$29,609,100

Personal Property Investment:
Not applicable

Community Reinvestment Credit (CRC):
Not applicable

Capital Investment not in PILOT:
$3,121,559

Projected Tax Revenue:

$5,318,260

Projected Taxes Abated:

$8,658,345
City: $3,783,697 (75%)
County: $4,874,648 (75%)

Benefit/Cost Ratio:

0.61

Projected MWBE/LOSB Spending:

$8,485,330

Incentive Provided:

$8,658,345

Compliance Information

Not applicable

Approved

10/18/2017

Ramp up Period

2

Closing

Not applicable

Effective

Not applicable

Lease Begins

Not applicable

Lease Expires

Not applicable

Amended

Not applicable

Property Details

Lease Began

Not applicable

Lease Expires

Not applicable

1544 Madison Partners

1544 Madison Ave, Memphis, TN 38104