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The Grove Studios

Project Number: 20190703
Pilot Type: Residential
Status: Approved
Parcel ID: 045121 00019 , 045121 00020
County Commission District: 10 | City Council District: 05, 09

Summary

Zach Channing, on behalf of Southern Ave Properties, LLC (“Applicant”), was awarded a 10-year Residential PILOT to construct 30 residential units at 3440 Southern.

Mr. Channing is Vice President of Development with The Channing Corporation of Palm Beach Florida, which has developed $2 billion of residential and commercial properties in the United States. Mr. Channing developed 59 units of housing while a student at the University of Arizona.

The Residential PILOT will support redevelopment of a site previously operated as a gas station. The site has been abandoned for 15 years and a source of blight in the neighborhood.

The project will be comprised of one 16,800 square foot apartment building containing 30 studio apartments within walking distance to the Highland Strip and the University of Memphis. All apartments will feature modern open floor plans and stainless-steel appliances. Resident amenities will include a bocce ball court, gazebo and gathering space around a fire pit.

Financial assistance is needed to remove existing underground tanks and remediate the site, activate a long vacant property and deliver new housing in the University of Memphis area, and ensure profitability of this $2,575,000 investment.

The project is supported by both The University of Memphis and The University Neighborhoods Development Corporation (“UNDC”) consistent with the Residential PILOT Policies and Procedures.

EDGE Staff supports the project due to the demonstrated financial gap and strong support from the University of Memphis and UNDC. EDGE Staff requests approval of the 10-year Residential PILOT request with waiver of the Residential PILOT Scoring Criteria in Section V of the Residential PILOT Policies and Procedures.

PILOT Term:

10

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:

$2,575,000
Real Property Investment:
$2,233,800

Personal Property Investment:
Not applicable

Community Reinvestment Credit (CRC):
Not applicable

Capital Investment not in PILOT:
$341,200

Projected Tax Revenue:

$247,240

Projected Taxes Abated:

$423,630
City: $185,126 (75%)
County: $238,504 (75%)

Benefit/Cost Ratio:

0.58

Projected MWBE/LOSB Spending:

$738,450

Incentive Provided:

$423,630

Compliance Information

Not applicable

Approved

7/17/2019

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

The Grove Studios

3440 Southern Avenue, Memphis, TN 38111