VOL. 125 | NO. 244 | Thursday, December 16, 2010
Pinnacle Signs Lease at One Commerce
By Andy Meek
Pinnacle Airlines Corp. has signed a long-term lease at One Commerce Square, the Downtown tower where Pinnacle is relocating its corporate headquarters and several hundred employees.
Pinnacle spokesman Joe Williams first confirmed to The Daily News late Tuesday the lease had been signed, which moves Pinnacle one step closer to consummating a relocation made possible by tax breaks and development incentives worth millions of dollars.
The excitement already is palpable over the impending move to One Commerce, where Pinnacle held a company party over the weekend.
A spokesman for One Commerce owner US Bancorp did not return a call about whether the bank had yet agreed to the deal, but it did not appear as of press time that the bank had signed off on it.
Center City Commission president Paul Morris said Pinnacle’s lease is for a 13-year term for up to 13 floors at One Commerce.
Executing a lease moves the project into its final stages. It was made possible with the help of local businessmen and civic officials who convinced Pinnacle to keep its headquarters – currently near Memphis International Airport – in Memphis by bringing it Downtown and to forsake offers from competitors like Mississippi.
Among the deal sweeteners, city officials put $3 million on the table, and Downtown officials helped Pinnacle secure up to 670 parking spaces for employees.
The company would have 500 spaces at the 250 Peabody Place garage and 170 spaces at One Commerce.
Also, a local development team that is buying One Commerce from US Bancorp and making Pinnacle the anchor tenant has been granted a 20-year tax freeze. And that team is spending millions on construction and renovation of the building.
The Center City Revenue Finance Corp. on Tuesday approved the sale and issuance of $17.4 million in Recovery Zone Facility bonds for the project.