Poplar corridor developers seek tax incentives
A group of Memphis developers hopes to reinvest $42 million in city and Shelby County property taxes back into one of East Memphis’ most affluent districts.
The group — led by representatives of high-powered firms Highwoods Properties, Belz Enterprises, Boyle Investment Co. and Hertz Investment Group — presented a plan to Shelby County commissioners June 27 to create a Poplar Corridor Business District Tax-Increment Financing District (TIF).
The proposed 20-year TIF would allow a property owners association to keep $42 million in city and county property taxes for reinvestment in the district, according to the group’s presentation to commissioners. The investment could spur another $499 million in new private investments that would generate tax revenues of $32 million for Memphis and $31 million for Shelby County, representatives said.
“We believe this is a big impact for local city and county governments,” said Dexter Muller, an adviser to the group who was formerly an executive at the Greater Memphis Chamber.
The group, which plans to form an association and board of directors to direct the project, has significantly fleshed out its plan for the TIF since The Commercial Appeal broke the news of the TIF last year. The 600-acre district will encompass 330 commercial parcels in an area bounded by Yates on the west, Park on the south, Kirby on the east and Shady Grove on the north. About 33,000 people work in the area, which is home to the highest concentration of topclass office space in the region.
The improvements could also grow local sales taxes by $13.6 million and create 7,000 permanent jobs in addition to 6,000 temporary construction jobs, the group said.
“This is investing in our Miracle Mile,” said Commission chairwoman Heidi Shafer, a longtime proponent of improvements to the highly trafficked Poplar corridor.
Here’s how the group proposes to reinvest its property taxes in the dis-
trict:
❚ $10.6 million on traffic signals on poles rather than have them dangling from wires. ❚ $9.3 million on road improvements. ❚ $9.2 million on street light improvements.
❚ $5.1 million to improve streetscapes and pedestrian walkways, including mid-block crosswalks, medians and landscaping.
❚ $4.8 million on gateways and street sign improvements.
❚ $3.2 million to move utilities poles back from the streets and increase spacing between them.
After the commission committee meeting, Steve Guinn, vice president of Highwoods’ Memphis division, said the association would have to wait perhaps a couple years for the money to pool before starting any projects.
Guinn said the goal is to make the district a magnet for more investment that would benefit all of Memphis, but also to make needed improvements to a valuable area.
“This is about preserving the district,” he said. “It’s helping to build the tax base.”
Guinn said the association would commit to a goal of at least 20 percent for minority and women-owned business enterprise (MWBE) participation in the projects, and possibly higher. Democratic Commissioner Reginald Milton said he supported the TIF as long as the association meets its MWBE participation goals.
“I want you to know, I will be looking very closely at this project,” he said, giving the developers a meaningful stare.
Another Democratic commissioner, Eddie Jones, said he also supports the TIF but wants to see TIFs in other areas as well, especially areas that “truly need” investment.
The TIF has to pass muster at both the commission and the Memphis City Council before it can become final. Developers may also look for state financing. Memphis has also committed to funding the widening of westbound Poplar between Yates and I-240.