The transformation of the former Tennessee Baptist Children’s Home property in Bartlett recently took another step in its renovation.

On Thursday, Nov. 18, the suburb’s Industrial Development Board unanimously approved the city’s first Tax Increment Financing district for the proposed $162 million Union Depot mixed-use project. TIFs are a way of monetizing revenue to help with financing public infrastructure.

Developer seeks Bartlett’s first-ever TIF

Developer Keith Grant has the 73.9-acre property on U.S. 70 north of Stage Road under contract. The final sale is contingent on getting TIF and development approvals from the city.

“We appreciate the IDB’s willingness to work with us in developing the Union Depot community,” Grant said. “We feel this is important to the Bartlett community. We’ve been building homes in Bartlett for over 50 years, and we really appreciate the chance to provide this opportunity to the city.”

The mixed-use “Union Depot” would include roughly 334 flats, 92 townhomes and 162 single-family homes, along with 62 lofts above parts of the 6 acres of retail (for a total of 85,000 square feet of commercial space). The project references the original name for Bartlett.

“The bulk of the frontage is on Highway 70, and it also has access onto Kirby-Whitten (Road),” Dexter Muller, economic development consultant for the project, said. “To my recollection, this is one of the largest single developments that’s taken place in the city of Bartlett’s history.”

He also stressed the strategic location of the site near one of the suburb’s main crossroads and provided numbers to support the project.

New city property taxes associated with the project could generate $5.2 million, along with the city’s share of $18.3 million from state and local sales taxes. Total taxes for the city and county from the project are estimated at $47.4 million.

More than 700 new direct and in-direct jobs will be created as a result of the project, with an additional 1,330-plus construction jobs from building the development, which Grant estimated could take five years.

The economic impact report was completed by Younger Associates.

Over the 20-year TIF term, the single-family homes are expected to generate $21 million in city and county property taxes, with the multifamily bringing in an additional $17 million and the commercial another $5 million.

“About 60% of the new revenues goes into to cover the cost of the public infrastructure for the project, and about 40% of it goes into the city and county government,” Muller explained.

For every $1 generated to the city from the project, 16.5% debt service will be paid, and then 75% of the remaining money goes into a TIF trust fund to pay for infrastructure.

“I think it’s what is needed for Bartlett for the future as we move forward,” said Bartlett Mayor A. Keith McDonald, who attended the meeting. “If we’re going to be competitive with our sister cities like Arlington and Lakeland, we’ll have to have the housing that both our younger families coming back in will want as well as our empty-nesters.”

IDB member Melissa Woodall requested the impact report.

“I think it certainly validates exactly what we believe,” she said.

“This is the first public hearing tonight that we’ve had in the history of the IDB,” said Chairman Mike McElya, who supported the resolution. “To me, Bartlett needs more choices.”

The board just adopted its new TIF process in the past couple of months.

Traditionally the IDB has considered PILOT tax abatement applications for large projects, with the most recent awarded last year to the Memphis Record Pressing.

Union Depot’s residences above retail would also be a first for Bartlett under the new mixed-use ordinance approved in fall 2019, allowing a special-use permit for a project of this type.

The resolution to adopt the TIF moves to the suburb’s Board of Mayor and Alderman on Tuesday, Nov. 23 and then the Shelby County Economic Development Committee on Dec. 1. If approved at those stops, the county Board of Commissioner will consider the application Dec. 6.

Development approval is progressing on a dual track with the City if Bartlett. The Planning Commission will discuss the application Nov. 29, and a special session of the Board of Mayor and Aldermen is scheduled for Nov. 30.