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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
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)