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Water to Wine, LLC

Project Number: 20200805
Pilot Type: Residential
Status: Approved
Parcel ID: 058048 00005
County Commission District: 13 | City Council District: 4, 8

Summary

Water to Wine LLC (“Applicant”) was approved for an 11-year Residential PILOT to construct 80 apartment units and a retail restaurant space at 3637 Park Avenue to be marketed as University Park Apartments. Water to Wine LLC, owned by Adam Underwood and Daniel Shumate, will develop the property. Ross Witt Architecture (Bartlett, TN) designed the plans.

The Residential PILOT will support the renovation of an existing 35,164 square foot office building that has been vacant for approximately ten years along with the construction of a new building of approximately the same size that will be constructed on the rear of the parcel. In total, the project will contain 30 studio apartments, 22 one-bedroom units, 28 two-bedroom units, approximately 2,000 square feet of ground floor commercial space and 99 off-street parking spaces.

The project is located 0.5 miles directly south of the University of Memphis Main Campus and 0.5 miles directly west of the University of Memphis South Campus. The retail space will be on the ground floor facing Park Avenue with a landscaped paved outdoor seating area. The property will offer keycard gated parking and building access, rooftop club house, covered picnic area and a secure dog run. Interior amenities will include energy efficient appliances, granite countertops, modern cabinets, polished concrete and tile floors, vaulted ceilings, and ceiling fans. Most units will also have a balcony.

Financial assistance is needed to deliver additional housing options for students at the University and young professionals along a long neglected commercial corridor. The Applicant has committed to making available 20% of the units, or approximately 16 units, for low to Moderate income residents pursuant to the EDGE policies.

Parcel 058048 00005 (3637 Park Avenue) is 1.728 acres and contains a 35,164 square foot office building. Only real property investments on this site will be included in the PILOT.

Today, this property produces $3,246 per year in property taxes. Staff projects, based on the application presented, this will increase to $65,753 per year during the term of the PILOT agreement and to $253,460 annually post-PILOT. Total benefit to the Applicant is expected to be $2,064,777.

PILOT Term:

11 years

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 Payroll:

Not applicable

Annual Retained Direct Payroll:

Not applicable

Total Capital Investment:

$9,235,000
Real Property Investment:
$8,635,000

Personal Property Investment:
Not applicable

Community Reinvestment Credit (CRC):
Not applicable

Capital Investment not in PILOT:
$600,000

Projected Tax Revenue:

$1,344,491

Projected Taxes Abated:

$2,064,777
City: $910,712 (75%)
County: $1,154,065 (75%)

Benefit/Cost Ratio:

0.65

Projected MWBE/LOSB Spending:

$2,080,555

Incentive Provided:

$2,064,777

Compliance Information

Not applicable

Approved

8/19/2020

Ramp up Period

2 Years

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

Water to Wine, LLC

3637 Park Avenue, Memphis, TN 38111