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The Grove Townhouses

Project Number: 20190702
Pilot Type: Residential
Status: Approved
Parcel ID: 4565520, 045119 00019
County Commission District: 10 | City Council District: 05, 09

Summary

Zach Channing, on behalf of Highland Street Investments, LLC, was awarded a 10-year Residential PILOT to construct 20 units of student housing for 75 residents near the intersection of Highland and Spottswood.

Mr. Channing is Vice President of Development with The Channing Corporation of Palm Beach, Florida, who has developed $2 billion of residential and commercial properties in the United States.

The Residential PILOT will support redevelopment of property previously owned by McDonald’s along with two adjacent single-family rental houses. The McDonald’s property has been vacant for more than three years and is incumbered with a deed restriction preventing any food-service operation on the site.

The project will consist of six three-story townhouse buildings. This will create 15 four-bedroom units, 5 three-bedroom units and 75 off-street parking spaces. Each bedroom will have its own bathroom and will be rented independently. All apartments will feature kitchens and living areas with open floor plans, granite counter tops and stainless-steel luxury appliances. Resident amenities will include a central lawn and a swimming pool.

Financial assistance is needed to deliver new student housing in the University of Memphis area, activate a vacant property on the highly visible Highland Strip and ensure profitability of this $4,565,520 investment. The project is supported by The University of Memphis and The University Neighborhoods Development Corporation (“UNDC”) consistent with the Residential PILOT Policies and Procedures. The project is consistent with Memphis 3.0 and has received Memphis & Shelby County Board of Adjustment Approval.

While EDGE did not anticipate Student Housing projects when it created the Residential PILOT Policies & 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 waivers of General PILOT Section III. 4. requiring low and moderate income units and 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:

$4,565,520
Real Property Investment:
$4,235,961

Personal Property Investment:
Not applicable

Community Reinvestment Credit (CRC):
Not applicable

Capital Investment not in PILOT:
$329,559

Projected Tax Revenue:

$431,431

Projected Taxes Abated:

$763,200
City: $333,518 (75%)
County: $429,682 (75%)

Benefit/Cost Ratio:

.57

Projected MWBE/LOSB Spending:

$1,300,240

Incentive Provided:

$763,200

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 Townhouses

3468 Spottswood Avenue, Memphis, TN 38111