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Arlington Memphis, LLC dba Velo at Shelby Farms
Project Number: 20191109
Pilot Type: Sewer Capacity
Status: Approved
Parcel ID: 091029 00015
County Commission District: | City Council District:
Pilot Type: Sewer Capacity
Status: Approved
Parcel ID: 091029 00015
County Commission District: | City Council District:
Summary
Arlington Memphis, LLC (“Applicant”), doing business as Velo at Shelby Farms, was approved for a two-year Sewer Capacity Management Incentive PILOT to enable the company to install an on-site sewage storage system with off-peak discharge. The project will create a 267-unit, $37,650,000 class-A multifamily community.The project meets the requirements stated above and has been recommended for approval by DPW (see attached letter of recommendation with specific system and process parameters).
The total project investment includes $1,150,000 for the land purchase, $31,000,000 in hard construction costs and site improvements, and $5,500,000 in soft costs at 7620 Raleigh Lagrange Road in Memphis, Tennessee.
Parcel 091029 00015 is 22.75 acres. The applicant will construct an apartment development consisting of approximately 274,000 square feet of space.
Birmingham, Alabama based Arlington Properties is a privately held apartment development, construction and management company. Since 1969, the company has developed 30,000 units. Since 2010, Arlington properties has developed more than 6,500 units with a total value of $900 million. The company currently manages 12,500 units in nine states.
EDGE adopted Policies and Procedures for the Sewer Capacity Management Incentive PILOT Program on July 25, 2018 at the request of the City of Memphis as a response to ongoing sewer capacity constraints in certain areas of the City that were deterring possible development projects. The PILOT helps Applicants absorb the cost of constructing offline sewer storage and pumping facilities required by the City of Memphis by abating City (only) real property taxes on the entire project for a term sufficient to offset the hard cost of the required offline system plus associated out-of-pocket PILOT costs. There is no abatement for Shelby County property taxes associated with the program. Projects must be PILOT eligible uses located in the City of Memphis that are first recommended in writing by the City of Memphis Department of Public Works (DPW). Only real property receives benefit.
PILOT Term:
2
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 Payroll:
Not applicable
Annual Retained Direct Payroll:
Not applicable
Total Capital Investment:
$37,650,000
Real Property Investment:
$32,150,000
Personal Property Investment:
Not applicable
Community Reinvestment Credit (CRC):
$5,500,000
Capital Investment not in PILOT:
Not applicable
Projected Tax Revenue:
$1,665,988
Projected Taxes Abated:
$594,438
City:
$594,438
County:
Not applicable
Benefit/Cost Ratio:
2.80
Projected MWBE/LOSB Spending:
$248,600
Incentive Provided:
$594,438
Compliance Information
Not applicable
Approved
11/13/2019
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