New York developer seeks incentives for $104 million in Downtown development
WAYNE RISHER | THE DAILY MEMPHIAN
New York developer Tom Intrator is seeking tax incentives for more than $100 million in Downtown development, including a Dream Hotel Memphis and four smaller projects on South Main and Front streets.
Besides a $54.5-million, 178-room hotel at the Royal Furniture site, 122 S. Main, the Intrator-led 18 Main proposes adaptive reuse projects at 107 S. Main and 311 S. Main; a new building filling in a gap at 386 S. Main; and a $30 million combination of adaptive reuse and new construction at 316-324 S. Front, just south of Gus’s Fried Chicken.
Intrator’s group will ask the Center City Revenue Finance Corp. on Tuesday, Nov. 12 to approve tax abatements that would avoid nearly $20 million in city and county property taxes over 15-20 years.
The Downtown Memphis Commission describes the potential tax savings as “hypothetical” because it says the projects would not occur without the incentive. The five projects would produce a combined increase of about $6.5 million in taxes during the terms of abatements, compared to what’s currently being collected on the under-utilized properties.
The Royal Furniture building had previously been announced for conversion into a Dream Hotel through a combination of retrofitting the existing building and new construction rising above it. The developer’s timeline calls for full occupancy by December 2022.
18 Main revealed its broader plan for investment in Downtown Memphis with Thursday’s release of the CCRFC agenda.
“We’re making another significant step in our vision to contribute to a vibrancy across the entire South Main district, including Front Street and the Main Street Mall,” Intrator said in a press release. He’s founder and managing partner of 18 Main, which won a tax abatement in 2018 for an adaptive reuse that’s under construction at 18 S. Main.
“We want to build density, fill gaps, and activate these spaces with people and concepts that encourage heightened activity,” Intrator said.
“We are furthering our shared goal of realizing a more vibrant and sustainable Downtown experience for locals and guests alike,” said Intrator. “And we look forward to not just contributing to Memphis’ success but benefiting from the existing energy of the city.”
Intrator also has been buying up property in the Pinch district on the north end of Downtown.
Downtown Memphis Commission president Jennifer Oswalt applauded 18 Main’s plans for 107 S. Main, which has long been glaring example of blight amid Main Street’s push toward revitalization.
“We have actively pursued the stabilization and revitalization of 107 S. Main for years, from structural repairs to commissioning a mural for a more attractive view by locals and visitors of this shuttered property,” Oswalt said.
“Not only does 18 Main aim to reimagine the building, but they’re going further to create an activated block with Dream Hotel. We applaud the vision and continued investment in Downtown Memphis,” Oswalt said.
Plans call for 107 S. Main to be renovated for office and retail space in a $7 million project.
Another $7 million project would renovate 311 S. Main for a mix of commercial uses.
18 Main proposes to spend $6 million to build 24 apartments and ground-floor retail space at 386 S. Main, a vacant lot where a building was previously removed. The new building is projected to be completed by August 2021.
The project at 316-324 S. Front calls for 165 apartment units, ground-floor retail and a 120-space parking garage. The timeline for full occupancy is April 2023.
18 Main is seeking a 20-year tax abatement, or payment in lieu of taxes, for the Dream Hotel, and 15-year tax incentives for the other projects.
In addition to Intrator, Shay Yadin is listed as managing partner of 18 Main. Yadin, described as experienced in property development and real estate law, has worked on developments of more than 3 million square feet of retail, office, hospitality and residential assets valued at more than $750 million, the applications state.