After loan, developer donates to park work
Carlisle Corp. getting $10M, pledges $1.5M
Eight days after Carlisle Corp. received approval for a $10 million loan from Memphis taxpayers, the developer got part of Tom Lee Park named after the company – after it pledged a $1.5 million donation.
The piece of Tom Lee Park in question – now the Carlisle-cutbank Bluff – is separated from the company’s One Beale development by some sidewalks and railroad tracks. The company’s donation helps fund Ada-accessible ramps for the $62 million redesign of Tom Lee Park, a public space that hosts events such as Memphis in May and Beale Street Music Festival.
Those events could bring patrons to the two existing One Beale hotels and the planned Grand Hyatt, the project that received the $10 million public loan last week.
Carlisle Corp. is run by Chance Carlisle, a member of the prominent Memphis family and brother of Chase Carlisle, a member of the Memphis City Council. The developer and his brother attended a renaming ceremony for the bluff Thursday night.
Until he secured the $10 million loan last week, Chance Carlisle had spent most of the year seeking further financial incentives from the city of Memphis and said receipt of those incentives could be the difference between the Grand Hyatt happening or not.
Chance Carlisle said in an interview that the donation to Memphis River Parks Partnership, which runs the
park, had been pledged in 2020 before he sought incentives for One Beale and it was to fund “low-priority” Ada-accessible ramps.
He said the renaming of the bluff had been delayed multiple times as he was seeking incentives from the Memphis City Council.
“We stepped up and made a contribution to make sure that it got fully funded. How that has anything to do with the One Beale Development is a coincidence of time. Literally, it’s opening and they needed to name it.” Carlisle said. “I’ll make that donation or contribution every time six ways from Sunday.”
The Memphis River Parks Partnership, through a spokeswoman, said Chance Carlisle had made his pledge for the park in September 2020.
Council chair: Donation is ‘disturbing’
Memphis City Council Chairman Martavius Jones said news of Carlisle Corp.’s donation was “troubling” and questioned why the city gave the developer such a large loan.
“It is disturbing that the way that it was represented to the council was without this $10 million that this deal couldn’t go through,” Jones said. “Charitable contributions, in my estimations, they come from discretionary funds. Not funds that you would think that are required in order to make a project take place. So I am troubled by it.”
Jones said he had no knowledge of Carlisle Corp.’s planned donation and did not know if other members of the City Council knew about it.
“I don’t know if the city had any knowledge of it. I did not have any knowledge that this was going to be taking place,” Jones said. “It looks like an $8.5 million loan would have been more appropriate than a $10 million loan.”
Dan Springer, the city’s deputy chief operating officer, said the city of Memphis learned of the donation Thursday.
In his Friday interview, Chance Carlisle said not donating $1.5 million to Memphis River Parks and receiving a smaller loan from the city would have further diluted local, Black partners in the project. Throughout this summer, as he sought further incentives from the city, he and some of his partners said the development team being asked to put in further capital would dilute Black ownership.
“It is disturbing that the way that it was represented to the council was without this $10 million that this deal couldn’t go through . ... It looks like an $8.5 million loan would have been more appropriate than a $10 million loan.” Martavius Jones Memphis City Council chairman
Loan is just one piece of incentive package
Chance Carlise, One Beale and the city of Memphis took a winding path to the $10 million loan. He received the loan after first seeking that taxpayers backstop 50% of the bonds issued for the project and then 100%.
The Memphis City Council approved both backstops but when it approved 100%, Memphis Mayor Jim Strickland said he would not sign off on it. Carlisle responded by saying that if his project fell through, he was not sure he would further invest in Memphis.
That started about two months of negotiation, which ended with the sides agreeing to a $10 million loan. The loan comes from the city of Memphis’ fund balance — the rainy day fund. It will be passed to Carlisle through the Center City Revenue Finance Corporation, an entity controlled by the Downtown Memphis Commission. It will be repaid to the CCRFC but it is unclear whether the money will then return to the city of Memphis coffers or remain with the agency.
A Public Records Act request for the development agreement between One Beale and the city of Memphis has not been returned.
One Beale also received a PILOT — payment in lieu of taxes, a tax break that is a 75% reduction in property taxes. It also is a part of a Tourism Development Zone, which is allows it to charge a 5% tax at the development and it receives a sales tax rebate from the local sales tax. Those taxes will pay the bonds for debt issued for the project.
The Downtown Mobility Authority is building a $40 million parking garage across Front Street from the development.
Samuel Hardimancan be reached by email at samuel.hardiman@commercialappeal.com or followed on Twitter at @samhardiman.