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Stepherson Incorporated, dba Superlo Foods

Project Number: 20191107
Pilot Type: Community Builder
Status: Approved
Parcel ID: 047020 00131
County Commission District: | City Council District:

Summary

Stepherson Incorporated (Applicant), dba Superlo Foods, was approved for a 15-year Community Builder PILOT to redevelop a supermarket building at 2269 Lamar that has been vacant since Kroger exited the location almost two years ago and open a full-service Superlo Foods to serve the grocery needs of the community.

The $1,400,955 project includes land value of $602,800, existing building value of $147,200, renovation costs of $315,000 and equipment and related personal property totaling $335,955.

This project will create 28 full-time grocery store positions earning an average of $35,513 annually and part-time positions equating to an additional 40 full-time-equivalent jobs at $15,553.

Parcel 047020 00131 (2269 Lamar) is 3.912 acres and contains a 37,500 square foot supermarket. Only real property will be included in the PILOT. The Applicant is requesting Community Reinvestment Credit.

Launched in 1944 as Stepherson Brothers, the Applicant has operated continuously in Memphis as Big Star, Stepherson’s Food Store and Superlo Foods. Today the company owns seven locations in the City of Memphis and one in Southaven, Mississippi. With a few exceptions, the company operates in lower income areas. Superlo Foods has an everyday low-price structure and takes great pride in offering customers true savings on their grocery bill. Approximately 25% of the company’s business comes from SNAP (Supplemental Nutrition Assistance Program) benefits.

The proposed Lamar location is on the edge of Orange Mound. There are 96,574 people within a 3-mile radius with median household incomes of $31,065. The project is in a severely distressed New Markets Tax Credit Eligible Census Tract with a 48% poverty rate and a USDA defined food desert. The closest grocery options are a nearby Sav-A-Lot and an ALDI almost two miles away. Financial assistance is needed to provide healthy food options to the neighborhood, remove blight, complete renovation of the building, create jobs and improve the overall neighborhood quality of life consistent with the Community Builder PILOT policies.

In addition to the City of Memphis, the project is supported by the Mt. Pisgah CME Church.

PILOT Term:

15

Projected New Jobs:

68

Projected Retained Jobs:

Not applicable

Total Jobs:

68

Projected Average Payroll of New Jobs:

$23,771

Projected Average Payroll of Retained Jobs:

Not applicable

Annual New Direct Payroll:

$1,616,428

Annual Retained Direct Payroll:

Not applicable

Total Capital Investment:

$1,400,955
Real Property Investment:
$315,000

Personal Property Investment:
Not applicable

Community Reinvestment Credit (CRC):
$335,955

Capital Investment not in PILOT:
$68

Projected Tax Revenue:

$3,194,427

Projected Taxes Abated:

$150,720
City: $66,480
County: $84,240

Benefit/Cost Ratio:

21.19

Projected MWBE/LOSB Spending:

$101,358

Incentive Provided:

$150,720

Compliance Information

Not applicable

Approved

11/13/2019

Ramp up Period

1

Closing

12/31/2019 (Real)

Effective

12/31/2019

Lease Begins

12/31/2019 (Real)

Lease Expires

12/31/2034 (Real)

Amended

Not applicable

Property Details

Lease Began

12/31/2019 (Real)

Lease Expires

12/31/2034 (Real)

Stepherson Incorporated, dba Superlo Foods

2269 Lamar, Memphis, TN 38114