127-unit apartment building planned near Memphis Fairgrounds
Development company Central Junction LLC, led by Marion Threatt, is planning a 127-unit apartment building near the Memphis Fairgrounds.
The project was approved Wednesday afternoon for a 15-year Residential Payment in Lieu of Taxes (PILOT) incentive that would save developers nearly $5.3 million in property taxes.
The project at 2601 Central Ave., a vacant lot east of the fairgrounds, is expected to cost just over $20 million. The tax savings represents about 75% of the project’s property tax obligation.
According to a PILOT application submitted to the Economic Development Growth Engine (EDGE) for Memphis and Shelby County, the building will have one- and two-bedroom units between 640 and 1,380 square feet. The most affordable apartment units are expected to be priced around $1,000 a month, with the most expensive units around $1,700.
About 20% of the units will be reserved for low- and moderate-income
residents.
“Staff does not believe this project is viable without a PILOT and reserving low- to moderate-income units would be impossible,” said Velecia Young, economic development specialist for EDGE.
Construction is expected to begin in August.
Pandrol USA to invest more in Memphis
Railroad company Pandrol USA went back before the EDGE board on Wednesday to amend a PILOT incentive approved last year.
The initial approval granted a $1.5 million tax break in exchange for the company moving its North American Global headquarters from New Jersey to Winchester Road in Memphis and creating 73 new jobs. The project was initially expected to cost the company about $9.3 million.
Updated estimates show the project is now expected to cost about $12.9 million. Pandrol has also added more higher-paying jobs. On average, employees are expected to be paid $59,068 per year.
Under new PILOT terms, the company will save $2.3 million in property taxes.
“As Pandrol has moved our steel manufacturing operations from NJ to TN, we have encountered increased costs for the renovation of the facilities as well as additional equipment investments,” the company said in a letter to EDGE.
The brief financial summary of the project showed an additional $2.1 million in renovation costs, an additional $1.5 million in expenses for new machinery and, in addition to the new jobs, an average wage increase of nearly $10,000 per year.
Hair care product manufacturer Ampro was also granted a four-year PILOT worth about $270,000. The company, founded in Memphis in 1947, is planning a $6 million expansion that will add 15 new jobs paying an average of $32,170 annually.
The project would allow the company to double its manufacturing capabilities.
Desiree Stennett covers economic development and business at The Commercial Appeal. She can be reached at desiree.stennett@commercialappeal.com, 901-529-2738 or on Twitter: @desi_stennett.