Correction: An earlier version of this article stated that the planned FedEx parking lot had been approved. The agenda item was withdrawn from Wednesday, March 23 meeting. 

The Memphis and Shelby County Board of Adjustment approved a variance for the Butler Row project Downtown on Wednesday, March 23. 

The approved variance allows for the construction of 45 units in a narrow building site along Hadden Street, East Butler Avenue, G.E. Patterson Avenue, Second Street and Butler Avenue.

The lot is the island catty-corner from Wiseacre Brewery on B.B. King Boulevard. The lot is under contract, KRN Development president Scott Kern said. He expects to have the contract settled within 60 days.

“We were trying to include it in the original application, but we didn’t have that property under contract yet,” Kern said. 

Capital Square buys Downtown property that is part of the $65 million Butler Row project

The proposed site previously had a density limit for mixed-use spaces that would permit only 15 units. The variance will allow for 45 units within the designated .26-acre lot where the building will sit. 

Kern said to meet the goal of creating a two-sided street as Butler Row intends with its project scope, the development team needed to secure that higher density. 

“It’s about expanding activity in that area,” Kern said.

He said the project’s plan to have book-end buildings, a restaurant and communal space, is building off of an anchor destination such as Wiseacre. It helps encourage residents and visitors to walk from one destination to another and helps connect with South Main. 

The planned development had previously been approved for a maximum density variance by the Board in January that would increase the initial capacity of 128 residential units to 290.

The $65 million, 2.34-acre Butler Row development was awarded a 12-year payment-in-lieu-of-taxes (PILOT) via the Downtown Memphis Commission (DMC) in January.

Construction is expected to begin within 12 months, Kern said. The Butler Row development will replace a 30,000-square-foot vacant warehouse along B.B. King Boulevard with 285 residential units, a 300-space parking garage and 10,000-square-feet of commercial space.

Butler Row project secures maximum density increase

Butler Row is under development by Capital Square and KRN Development. Capital Square recently bought the property at 509 S. B.B. King Blvd. for $2.8 million in February. 

Additionally, the agenda item regarding plans to remove woodlands along 3180 Democrat Road was withdrawn by the applicant. (The lot is near the northern portion of Democrat near the intersection of Tchulahoma Road.) The decision was made in order to make way for a 1,700-space parking lot.

The 12.24-acre lot will be used by FedEx to ensure their pilots have ample parking options.

In submitted staff reports, project manager Jennifer Peregoy of Kimley-Horn noted that FedEx pilots are parking near a facility at 3131 Democrat where entering and exiting the facility is dangerous.

One fatality has occurred at that location. FedEx also shared plans to utilize a shuttle system in the lot that will remove the need for pilots and staff to have to cross Democrat Road on foot. 

According to staff reports, it is recommended to maintain some vegetation and meet streetscape requirements to remain within flood risk and stormwater protocols.

In doing so the development would remain within Memphis Area Climate Action Plan protocols that require urban tree canopies to increase from 37% to 60% coverage countywide by 2050. 

The Butler Row project was approved via the Board’s consent agenda. View the Butler Row variance here and the FedEx proposed parking lot plan here.