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3393 Summer Ave

Project Number: 20210502
Pilot Type: Community Builder
Status: Approved
Parcel ID: 044040 00001C, 044040 00039, 044040 00034C
County Commission District: 07 | City Council District: 05, 09

Summary

The Heights General Partnership led by Drew Joyner, Octavius Nickson and Chris Hendrix is seeking a 15-year Community Builder PILOT to purchase and restore a highly visible community shopping center at 3393 Summer Avenue. The project is in a New Markets Tax Credits Eligible Census Tract within the City of Memphis.

The total project investment includes $1,400,000 to purchase the property and $1,320,000 for renovations. The building requires roof and shell improvements to prevent further water damage, mechanical upgrades, and complete restoration of the 1925 era exterior façade. Only real property will be included in the PILOT. Community Reinvestment Credit will be awarded for the first five years of the fifteen-year term.

The 54,001 square foot property currently houses 11 existing businesses on short-term or month-to-month leases. Four spaces are currently vacant. The Applicant is working to retain up to seven of the tenants on long-term leases and would like to fill approximately 50% of the property with new community-serving tenants once construction is complete.

Filling the vacant and underutilized space could create approximately 40 retail jobs in the building.

The project is made up of three contiguous parcels.
• 3393 Summer (Parcel 044040 00001C) is 2 acres and contains a 41,661 square foot building.
• 3437 Summer (Parcel 044040 00039) is 0.42 acres and contains a 6,292 square foot building.
• 610 National (Parcel 044040 00034C) is 0.26 acres and contains a 6,048 square foot building.

Financial assistance was needed to remove blight, redevelop the property and improve the overall neighborhood quality of life consistent with Community Builder PILOT policies. The project’s Census Tract is severely distressed based on poverty rate, unemployment and median family income. Lastly, the intersection of Summer and National is a priority Accelerate Anchor in the Memphis 3.0 Comprehensive Plan.

The project is supported by the Heights CDC and the Summer Avenue Merchants Association.

PILOT Term:

15 Years

Projected New Jobs:

41

Projected Retained Jobs:

Not applicable

Total Jobs:

41

Projected Average Payroll of New Jobs:

$24,640

Projected Average Payroll of Retained Jobs:

Not applicable

Annual New Direct Payroll:

$1,017,337

Annual Retained Direct Payroll:

Not applicable

Total Capital Investment:

$2,720,000
Real Property Investment:
$2,720,000

Personal Property Investment:
Not applicable

Community Reinvestment Credit (CRC):
Not applicable

Capital Investment not in PILOT:
Not applicable

Projected Tax Revenue:

$2,551,717

Projected Taxes Abated:

$568,915
City: $250,932 (75%)
County: $317,983 (75%)

Benefit/Cost Ratio:

Not applicable

Projected MWBE/LOSB Spending:

$415,337

Incentive Provided:

$568,915

Compliance Information

Not applicable

Approved

5/19/2021

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

3393 Summer Ave

3393 Summer Ave, Memphis, TN 38122