City, State Incentives Lining Up For ServiceMaster's Move Downtown

By Bill Dries

ServiceMaster Global Holdings Inc. will be getting a lot of help with its headquarters move into the vacant Peabody Place mall.

ServiceMaster is receiving $5.5 million in state incentives for its new headquarters in the former Peabody Place mall. Local incentives will be voted on next week.

(Daily News/Andrew J. Breig)

Documents obtained by The Daily News show that mall landlord Belz Enterprises will contribute $12 million to improvements to the facility while ServiceMaster will invest $14.8 million in converting the 340,000-square-foot retail center into corporate offices with open working and research spaces.

The Downtown Memphis Commission’s Center City Development Corp. will vote next week on a $1 million development grant for tenant improvements. The DMC staff is recommending approval of the grant.

In a letter to the CCDC board, ServiceMaster said the grant funding is essential to the company's decision to move.

All of this is in addition to $5.5 million that Tennessee's state funding board approved in Nashville Thursday, June 9.

The actual conversion work by ServiceMaster will take eight to nine months, officials said, and the opening is projected for Feb. 1, 2018.

No less than 20 percent of the work will need to go to women- and minority-owned businesses in order for ServiceMaster to get the CCDC grant, making the minimum level of participation $2.9 million.

Other local incentives are in the works, too.

As the state funding board was meeting in Nashville, the Center City Revenue Finance Corp. board posted the agenda for a June 14 meeting that will include another piece of the incentives package. The item on the agenda is “an amendment to the PILOT (payment in lieu of taxes) lease for the Peabody Place Retail Center in connection with the conversion of the retail center for office use.”

No documents with details of the amendment were included on the agenda.

Consideration of the incentives comes as work crews are already beginning renovation work at Peabody Place.

ServiceMaster CEO Robert Gillette has said the incentives were an important factor, as the company considered offers from other cities to relocate its headquarters.

Read more about ServiceMaster’s decision in The Memphis News' June 10-16 edition, online and on stands Friday.