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1544 Madison Partners

Project Number: 20171002
Pilot Type: Residential
Status: Approved
Parcel ID: 01703100012
County Commission District: 01 | City Council District: 05

Summary

This project was amended and restated due to necessary changes to the design plans and financing availability for the project. 1544 Madison Partners proposes increasing the total number of living units and adjusting the overall mix of units, a reduction of the number of units reserved for low moderate income residents, and a reduction in parking spaces. Project costs have increased by $11,014,747.

1544 Madison Partners (“Applicant”) was approved for a 15-year Residential PILOT to construct 220 apartment units at the corner of Madison Avenue and North Avalon. The project will be owned by a partnership of Orgel Family, L.P., Three Madison Investments, LLC, Berlin Boyd, Adam Slovis, Benjamin Orgel, Jay
Lindy and Michael McLaughlin.

The Residential PILOT will support the redevelopment of the site formerly occupied by BellSouth that is now a vacant lot. Four new buildings will be constructed on the site ranging from three to five-stories.
An existing two-story building will be renovated. The project will consist of 170 one-bedroom units, 43 two-bedroom units, seven three-bedroom units, 5,000 square feet of commercial space (in shell-ready condition for marketing to tenants) and 223 off-street parking spaces.

All apartments will feature a modern open kitchen and living concept, nine-foot smooth ceilings, wood floors, stainless steel appliances and granite countertops with European-style cabinetry. Most units will
feature an exterior covered balcony. Resident amenities will include a media lounge, 24-hour fitness center, a business center and bike storage.

Financial assistance is needed to deliver new class-A multi-family living space to Midtown, increase
population density in historic parts of Memphis and ensure profitability of this $35,789,816 investment.
The applicant has committed to reserving 25% of the project, or 55 units, for Low to Moderate income residents. The project is supported by the Memphis Medical District Collaborative consistent with the Residential PILOT policies.

Only real property investments on this site will be included in the PILOT. The deadline for closing and conveying the property into the PILOT program shall be extended by twelve months to October 18, 2020.

At the time of approval, this property produced $29,463 a year in property taxes. Staff projects this will increase to $280,956 a year or $4,214,340 of property tax revenues to be received during the PILOT term.

Total tax revenues received during the PILOT term including taxes from construction and operation, in addition to property taxes, are estimated to be $5,318,260. The benefit to the Applicant is estimated to be $577,223 a year or $8,658,345 over the life of the PILOT.

PILOT Term:

15

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:

$35,789,816
Real Property Investment:
$29,609,100

Personal Property Investment:
Not applicable

Community Reinvestment Credit (CRC):
Not applicable

Capital Investment not in PILOT:
$6,180,716

Projected Tax Revenue:

$5,318,260

Projected Taxes Abated:

$8,658,345
City: $3,783,697 (75%)
County: $4,874,648 (75%)

Benefit/Cost Ratio:

Not applicable

Projected MWBE/LOSB Spending:

$8,485,330

Incentive Provided:

$8,658,345

Compliance Information

Not applicable

Approved

10/18/2017

Ramp up Period

2

Closing

11/1/2019 (Real)

Effective

11/1/2019

Lease Begins

11/1/2019 (Real)

Lease Expires

10/31/2036 (Real)

Amended

3/20/2019

Property Details

Lease Began

11/1/2019 (Real)

Lease Expires

10/31/2036 (Real)

1544 Madison Partners

1544 Madison Ave, Memphis, TN 38104