MEMPHIS, Tenn. — The future of the former Mall of Memphis site is unknown as a decision on a major PILOT deal is postponed.
Huntington Industrial and Johnson Development want a 15-year PILOT to build several warehouses on the land, but they do not have anyone to lease them yet.
The EDGE board voted almost unanimously to push a decision off by 30 days. Only one member recused himself.
If you build it, they will come — that is how Huntington and Johnson are pitching their plan.
“Necessity should be the motivator for this spec PILOT,” a representative said. “It’s new, and it’s different. Let’s see how it goes.”
They asked the EDGE board for a 15-year PILOT to build top-of-the-line warehouses in three project phases spanning several years.
They do not have any pending prospects to lease those buildings but claim once the construction starts, businesses will jump.
They anticipate anywhere from 561 jobs to more than 851 and anywhere from $44 million to $66.5 million in new tax revenue.
Steve Guinn with Highwood Commercial Properties spoke out against the PILOT, claiming it would create an uneven playing field.
“It effectively turns the PILOT program from a job creation program to what I’m going to call a lease-up program.”
Huntington and Johnson threatened to sell the property and walk away completely if the board tabled the issue.
“We actually have an offer from a property,” they told the board. “It’s from a company in the trucking businesses. It will create only a fraction of the jobs that we’re talking about.”
However, that is exactly what they did.
“I don’t want my vote to delay to be a no vote, but I also want to make sure we can provide to this group some type of specificity,” an EDGE board member said. “They need certainty
Representatives from Huntington and Johnson refused to comment after the meeting.