» Subscribe Today!
More of what you want to know.
The Daily News
X

Forgot your password?
Skip Navigation LinksHome >
VOL. 127 | NO. 213 | Wednesday, October 31, 2012

Beale Street Bankruptcy Ruling Clears Way for City Control

By Bill Dries

Print | Front Page | Email this story | Email reporter | Comments ()

More than two years after the city of Memphis reached a settlement with the company that managed and developed the Beale Street entertainment district, a federal bankruptcy court ruling Tuesday, Oct. 30, cleared the way for the city of Memphis to regain day to day control of the district.

U.S. Bankruptcy Judge Jennie Latta ruled that Performa Entertainment Real Estate Inc. is not in default of its sublease with the Beale Street Development Corporation. With that finding, Performa, which has managed and developed the city-owned properties since the renovated district opened in 1983, can now reassign its lease to the city of Memphis.

The claim by BSDC, which acted as a middleman between the city of Memphis and Performa by virtue of its master lease with the city, has held up plans by the city to plan and move to a second phase of development for Beale Street between Second and Fourth Streets.

Memphis Mayor A C Wharton Jr. made the settlement of a multi-sided Chancery Court lawsuit a priority shortly after becoming mayor in 2009. He and Performa founder John Elkington negotiated a settlement in 2010 that included the departure of the company and Elkington from management of the district. Performa then filed bankruptcy reorganization as part of the settlement with a plan to assign the lease to the city.

Attorneys for the nonprofit BSDC contested that which after two years led to a two-day hearing before Latta that began Monday.

Still to come is a ruling from Latta on Performa’s settlement.

Sign-Up For Our Free Email Edition
Get the news first with our daily email


 
Blog Get more from The Daily News
Blog News, Training & Events
RECORD TOTALS DAY WEEK YEAR
PROPERTY SALES 65 366 17,721
MORTGAGES 70 417 23,068
FORECLOSURE NOTICES 15 91 4,519
BUILDING PERMITS 210 932 42,157
BANKRUPTCIES 62 299 16,691
BUSINESS LICENSES 19 80 5,781
UTILITY CONNECTIONS 49 305 25,174
MARRIAGE LICENSES 16 96 5,381

Weekly Edition

Issues | About

The Memphis News: Business, politics, and the public interest.