Downtown board reexamines PILOT program, considers new applicant
Paul Young is president of the Downtown Memphis Commission. The board’s leadership recently decided it’s a good time to review PILOT program policies. (Patrick Lantrip/Daily Memphian file)
Correction: An earlier version of this story was incorrect. PGAV will seek approval for its proposal to review the Center City Revenue Finance Corp.’s tax incentive program at the Tuesday, Oct. 12, meeting. Findings of the review are expected to be reported in early 2022.
A St. Louis, Missouri-based consultant selected to review the effectiveness of the Center City Revenue Finance Corp.’s tax incentive program will seek approval for its proposed scope of work and budget Tuesday, Oct. 12.
The consultant, PGAV, estimates it will cost $65,000 to conduct a thorough review of the Downtown board’s PILOT (payment in lieu of taxes) policies. It expects to report its findings in early 2022.
DMC leadership decided it is an appropriate time to review the board’s policies given the recent adoption of the Memphis 3.0 Comprehensive Plan and completion of the BuildDowntown Master Plan, according to a report filed Oct. 5 by the board’s staff.
The staff report also cited changing market conditions, mostly in the wake of the COVID pandemic, and a push from city and county elected officials to ensure PILOTS are “providing an adequate level of public benefit.”
The DMC solicited proposals for the PILOT policy review project in June, and the following firms responded by the July 30, 2021 deadline:
- Camoin and Storrs Associates (Saratoga Springs, New York)
- ComCap Partners (Memphis)
- Gruen Gruen + Associates (Chicago, Illinois)
- BAE Urban Economics (Washington, DC)
- Municap, Inc. (Columbia, Maryland)
- PFM Group (Philadelphia, Pennsylvania)
- PGAV (St. Louis, Missouri)
- RKG Associates (Alexandria, Virginia)
Based on criteria like relevant work samples, estimated budget and knowledge of the Memphis market, ComCap, Municap, PFM, PGAV and RKG were chosen as the finalists.
Bobbi Gillis is chairperson of Center City Revenue Finance Corp. (Lance Murphey/Daily Memphian file)
PGAV was selected after a series of interviews with DMC staff and CCRFC chair Bobbi Gillis.
In a letter outlining its scope of work, PGAV estimates a $65,000 lump sum fee, which will be invoiced monthly in proportion to the amount of work completed.
220 Claybrook
The CCRFC will also consider a new PILOT at its meeting Tuesday, Oct. 12.
CTPL LLC will ask the board for a 12-year PILOT to build a four-story building with 83 residential units in the Medical District subarea of the Central Business Improvement District.
Lee Patton and Cameron Taylor, of CTPL, want to convert the site of a demolished medical office at 220 S. Claybrook St. into a multi-family building with potential for retail.
The project is estimated at $13 million, and the developers would pay a $195,000 PILOT fee. According to CTPL, “approval of a PILOT is necessary for the project to be economically viable and attract debt and equity.”
The .8 acre parcel at the southwest corner of Claybrook Street and Eastmoreland Avenue was once the site of a seven-story medical office building, built in 1960. After sitting vacant for several years, the building was demolished earlier this year.
In addition to the residential units, the building will feature a 1,112-square-foot leasing office and a 795-square-foot commercial bay which could serve as retail space.
Topics
PILOT Downtown Memphis Commission Center City Revenue Finance Corp. PGAV Bobbi GillisRob Moore
Rob Moore covers North Mississippi for The Daily Memphian. He holds a B.A. and an M.A. in English from The University of Memphis.
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