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Overton Square LLC

Project Number: 20170902
Project Type: Community Builder
Parcel ID:
County Commission District: 10 | City Council District: 05

Summary

Overton Square, LLC was awarded a 15-year Community Builder PILOT to construct a 100-room boutique hotel at the southwest corner of Trimble and Cooper Street in Midtown Memphis.

The Community Builder PILOT will support the redevelopment of the site that is a surface parking lot, currently. This project anchors a neighborhood of more than 13,000 people in a zip code with a 22% poverty rate, in addition to removing blighted conditions from this highly visible location and adding a critical piece to the development of a regional theater district. The project will consist of a hotel with a rooftop restaurant and structured parking. The property will be branded through a hotel franchise agreement or an approved independent boutique hotel operations company. While the jobs component is not a requirement of the Community Builder PILOT program, the $24.2 million investment will create 35 hotel jobs, 25 food and beverage jobs, and five management positions. Staff projects $5,407,329 in local total tax revenues to be received during the PILOT term of this project and a $6,151,389 benefit to the PILOT recipient. There will be a required estimated Local Business Participation spend of more than $5.4 million with City and County-certified Minority/Women Business Enterprises.

The Memphis Convention & Visitors Bureau, Playhouse on the Square, Hattiloo Theater, the Indie Memphis Film Festival, and the Midtown Memphis Development Corporation support the project.

“We see this project as a way to increase property tax dollars for the City of Memphis,” said Mr. Sam Goff, Chair of the Midtown Development Corporation. “Moreover, this project is exactly what midtown needs to continue its redevelopment and revitalization.”

Mr. Ekundayo Bandele, Founder/CEO of Hattiloo Theater and neighboring business also expressed his support of the project. “There are only four freestanding black theaters in the United States. Hattiloo is proud to be one of those four. We believe adding this hotel will increase Hattiloo’s opportunities to become the leading black theatre in the country.”

PILOT Term:

15

Projected New Jobs:

65

Projected Retained Jobs:

Not applicable

Total Jobs:

65

Projected Average Payroll of New Jobs:

$22,690

Projected Average Payroll of Retained Jobs:

Not applicable

Annual New Direct/Indirect Payroll:

$1,474,850

Annual Retained Direct/Indirect Payroll:

Not applicable

Total Capital Investment:

$24,200,000
Real Property Investment:
$21,000,000

Personal Property Investment:
$2,000,000

Community Reinvestment Credit (CRC):
Not applicable

Capital Investment not in PILOT:
$1,200,000

Projected Tax Revenue:

$5,407,329

Projected Taxes Abated:

$6,151,388
City: $2,688,156 (75%)
County: $3,463,232 (75%)

Benefit/Cost Ratio:

0.88

Projected MWBE/LOSB Spending:

$5,422,708

Incentive Provided:

$6,151,389

Compliance Information

Not applicable

Approved

9/20/2017

Ramp up Period

5

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

Overton Square LLC

0 Monroe Street, Memphis, AL 38104