VOL. 133 | NO. 28 | Wednesday, February 7, 2018
New Mixed-Use Building Planned for Former Blue Monkey Site
By Patrick Lantrip
A local investment group is seeking a nine-year tax break from the Downtown Memphis Commission to construct a new mixed-use building where the Downtown Blue Monkey once stood at 529 Front St.
If approved, the new three-story, 7,500-square-foot building would feature approximately 5,000 square feet of ground-floor restaurant space with four rental units located upstairs.
The project carries a roughly $1.6 million price tag and would be ready to begin construction within three months of receiving PILOT (payment-in-lieu-of-taxes) approval from the DMC’s Center City Revenue Finance Corp.
Currently, the 0.63-acre vacant lot generates $1,433 in city and county taxes annually.
DMC staff estimates that during the nine-year PILOT, taxes would rise 537 percent to $9,130 annually, or $69,278 in total.
The new three-story, 7,500-square-foot building would feature approximately 5,000 square feet of ground-floor restaurant space with four rental units located upstairs.
(529 S. Front Street LLC)
The local investment group, operating under the name 529 S. Front Street LLC, consists of Michael and Rebecca Johnson, Chris Jameson, George Hampton, Larry Clark, George Bogy, Vernon Delashmit and Carl Jordan.
529 S. Front Street LLC plans on purchasing the property from current owners, Blue Monkey Enterprises LLC, if the PILOT is approved.
Funding of approximately $1.4 million from Landmark Bank has also been secured pending the CCRFC’s approval.
“According to the applicant, approval of a PILOT is necessary for the project to be economically viable and attract financing,” the DMC staff report reads, in part. “Without a PILOT tax incentive, the project proforma shows a negative cash flow, deficient debt coverage ratio, and negative returns on both equity and investment.”
The project’s development team also consists of architect Larry Clark with Development Studio LLC and a yet-to-be-named general contractor.
The CCRFC will review 529 S. Front Street LLC’s application during its regularly scheduled Feb. 13 meeting.