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Frayser Gateway

Project Number: 20170601
Project Type: Community Builder
Parcel ID: 07204500118 07204500126 07204500125
County Commission District: 07 | City Council District: 07

Summary

With assistance from EDGE, a new grocery and retail shopping center will help lead the redevelopment of a nearly 20-acre parcel located in a blighted area of Frayser. With plans to construct a 97,300-square foot grocery anchored shopping center at 2571 North Hollywood, the Frayser Gateway project was awarded a 15-year Community Builder Payment in Lieu of Tax (PILOT) to G2 Venture Group.

The project developers expect to invest more than $16 million into the vacant site that was once home to a Treasury Department Store. The multi-phased development will include a 20,000 to 45,000 square foot full service value grocer (containing fresh meat and produce departments), a 20,000 to 30,000 square foot apparel tenant, 10,000 square foot national value household goods retailer, and multiple smaller retail tenants. Three outparcels will also be developed for restaurant use.

Financial assistance was requested to help remove blight, provide food access, and improve the overall neighborhood quality of life consistent with the Community Builder PILOT policies. In addition to removing severe blight from a highly visible location, Frayser Gateway will provide significant benefits to an area of 25,370 households with a median income of $26,698. The grocery will benefit neighborhoods to the South, West, and East of the site that are USDA designated food deserts. Jobs will be created for surrounding neighborhoods suffering unemployment rates of 15% to 30%. The project will create approximately 136 full time equivalent jobs with an average base salary of $23,294.

The Frayser Community Development Corporation and Memphis Business Academy support the project. EDGE staff projects $7,745,475 in local tax revenues to be received during the PILOT term of this project and a $4,472,025 benefit to the Applicant.

PILOT Term:

15

Projected New Jobs:

136

Projected Retained Jobs:

Not applicable

Total Jobs:

136

Projected Average Payroll of New Jobs:

$23,294

Projected Average Payroll of Retained Jobs:

Not applicable

Annual New Direct/Indirect Payroll:

$3,167,984

Annual Retained Direct/Indirect Payroll:

Not applicable

Total Capital Investment:

$16,080,000
Real Property Investment:
$14,290,000

Personal Property Investment:
Not applicable

Community Reinvestment Credit (CRC):
Not applicable

Capital Investment not in PILOT:
$1,790,000

Projected Tax Revenue:

$7,745,475

Projected Taxes Abated:

$4,472,025
City: $1,956,870 (25%)
County: $2,515,155 (25%)

Benefit/Cost Ratio:

1.73

Projected MWBE/LOSB Spending:

$3,868,304

Incentive Provided:

$4,472,025

Compliance Information

Not applicable

Approved

6/21/2017

Ramp up Period

Not applicable

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

Frayser Gateway

2571 North Hollywood, Memphis, TN 38127