VOL. 112 | NO. 231 | Thursday, December 17, 1998
Two development loans that will assist with complete renovations of two Downtown buildings were approved by the Center City Development Corp
Loans will help renovate
two Downtown buildings
By KATHLEEN BURT
The Daily News
Two development loans that will help renovate two Downtown buildings were approved by the Center City Development Corp. Wednesday.
The board also approved modifying a payment-in-lieu-of-taxes agreement to fund a public plaza at the entrance of the proposed Downtown AutoZone Park.
The two $50,000 loans will be used in the complete renovation of the Puck Building at 409 S. Main St. and the Hot Line Building at 421 S. Main St. Both projects are identical in scope.
The pair of three-story buildings will be transformed into retail space on ground level and a total of 29 loft-style apartments on the upper floors. Gary Garland is the developer on both projects.
The projects qualified for the maximum loan amount that can be awarded by the CCDC. In a meeting Tuesday, the Center City Revenue Finance Corp. approved a 15-year PILOT for each building.
Garland has said previously that the cost to renovate these buildings is about $4 million.
With the approvals, the development loan pool utilized by the CCDC to make loans to property owners reached $408,000 for the fiscal year.
Some board members were concerned the loan pool has neared its budget allocation of $500,000 with more than six months left in the fiscal year.
Michael Stevens, Center City vice president of development, said although the pool is reaching the allotment for the year, another $200,000 is available in the CCRFC grant fund that hasnt been tapped into this fiscal year.
About four loans are on the horizon to be considered by the CCDC, Stevens said. The fiscal year ends June 30.
He said he is confident funds will be available for the remainder of the fiscal year to make development loans.
The board also voted to modify a PILOT agreement with the Memphis Redbirds Foundation that would transfer fees assessed from the William R. Moore building and parking garage to build a public plaza.
The Foundation had received the PILOT during negotiations to renovate the Moore Building and use the parking garage for Foundation offices, Storage USA headquarters and offices of architects Looney Ricks Kiss.
Last month, the CCDC voted to transfer the PILOT to Parkway Properties, the Jackson, Miss.-based company that will develop the property.
The Foundation requested that about $475,000 in PILOT fees be rebated for use in building the plaza.
Since the Foundation no longer holds the PILOT agreement on the building, that request was amended to arrange a transfer of the fees paid by Parkway once the deal closes to build the plaza.
Kristi Jernigan of the Foundation said without this transfer of funds, the plaza would be nothing but concrete with no enhancements. Plans are to build an attractive public spot with greenery and areas to eat lunch or relax.
"The Foundation feels that were short on these types of spaces Downtown. It would be a public facility or space we expect to be open 365 days a year," Jernigan said.
The plaza is proposed for the corner of Union Avenue and Third Street that would serve as the main entrance to the ballpark.
The property would be owned by the city, leased to the CCRFC, then subleased to the Redbirds Foundation, said James McLaren, legal counsel for the board.
All but two of the CCDC members present had to recuse themselves from the vote because of personal involvement in the project. The request was approved 2-0.
In an unrelated item, the board approved the transfer of property titles for 91 and 93 S. Main St. in the Gayoso-Peabody Historic District to Mark Stephens of the New York Suit Market.
Stephens proposes to develop an infill in the four-story building, creating 12 residential units that would be sold as cooperatives or condominiums. The property was appraised at $35,000.
Stephens put up $5,000 in earnest money last year for part of the property, then the CCDC purchased an adjoining section at a reduced price. In approving the request, Stephens will pay the remainder of the purchase price on a development loan schedule.
The next CCDC meeting is set for Jan. 20.