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The Grove Studios
Project Number: 20190703
Pilot Type: Residential
Status: Approved
Parcel ID: 045121 00019 , 045121 00020
County Commission District: 10 | City Council District: 05, 09
Pilot Type: Residential
Status: Approved
Parcel ID: 045121 00019 , 045121 00020
County Commission District: 10 | City Council District: 05, 09
Summary
Zach Channing, on behalf of Southern Ave Properties, LLC (“Applicant”), was awarded a 10-year Residential PILOT to construct 30 residential units at 3440 Southern.Mr. Channing is Vice President of Development with The Channing Corporation of Palm Beach Florida, which has developed $2 billion of residential and commercial properties in the United States. Mr. Channing developed 59 units of housing while a student at the University of Arizona.
The Residential PILOT will support redevelopment of a site previously operated as a gas station. The site has been abandoned for 15 years and a source of blight in the neighborhood.
The project will be comprised of one 16,800 square foot apartment building containing 30 studio apartments within walking distance to the Highland Strip and the University of Memphis. All apartments will feature modern open floor plans and stainless-steel appliances. Resident amenities will include a bocce ball court, gazebo and gathering space around a fire pit.
Financial assistance is needed to remove existing underground tanks and remediate the site, activate a long vacant property and deliver new housing in the University of Memphis area, and ensure profitability of this $2,575,000 investment.
The project is supported by both The University of Memphis and The University Neighborhoods Development Corporation (“UNDC”) consistent with the Residential PILOT Policies and 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 waiver of 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 Payroll:
Not applicable
Annual Retained Direct Payroll:
Not applicable
Total Capital Investment:
$2,575,000
Real Property Investment:
$2,233,800
Personal Property Investment:
Not applicable
Community Reinvestment Credit (CRC):
Not applicable
Capital Investment not in PILOT:
$341,200
Projected Tax Revenue:
$247,240
Projected Taxes Abated:
$423,630
City:
$185,126
(75%)
County:
$238,504
(75%)
Benefit/Cost Ratio:
Not applicable
Projected MWBE/LOSB Spending:
$738,450
Incentive Provided:
$423,630
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