MEMPHIS, Tenn. — City Council members want the EDGE board to get approval from the council before it makes policy changes in the future. The issue was raised Tuesday after the EDGE board announced it will change its rules about retail PILOTs, or payments in lieu of taxes, in order to seal the deal with IKEA.
“Even the news media seemed to know about it before some of us,” council member Wanda Halbert said about the original IKEA announcement.
WREG first told you about the deal back in December, but we learned Tuesday the EDGE board has to change its own rules to seal the deal. Reid Dulberger is the CEO of economic development in Memphis.
“It’s a question of timing and certainty for the company,” he said. “They are that the point where they need to know if they are moving forward.”
In order to move forward, the EDGE board, created by the council and county commission, has to change its rules to allow this first retail PILOT.
The problem some council members have is the board doesn’t have to ask the mayor or the city council’s approval to do that. Now the council wants more involvement in this process
Councilman Jim Strickland said, “I’m not saying individual PILOTs should be approved by the council. I’m just saying the policy.”
Retail PILOTs may not become a thing of the future though. Dulberger calls IKEA an extraordinary opportunity they can’t pass up. But council member Harold Collins had some questions.
“What is the definition of their term extraordinary?” he asked.
The city has said it can’t give Southbrook Mall any government money because it’s a private retailer. But so is IKEA, and it most likely will get about $9 million over the course of 11 years.
Halbert said struggling communities like Whitehaven deserve the same economic opportunities as east Memphis.
“I’m going to put this elephant on the table. Those are African-American people over there. Men and women who can’t get a dime out of this city,” she said.
The EDGE board meets Wednesday at 3 p.m. WREG will be there and bring you all the updates. Dulberger doesn’t expect they will sign off on the rule changes, just present them. Odds are you’ll see a few of the council members there, too.
