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Crosstown Wins 20-Year Tax Break
http://www.memphisdailynews.com/news...ear-tax-break/

The $180 million project to revitalize the Sears Crosstown building won a 20-year payment-in-lieu-of-taxes (PILOT) agreement Thursday, Oct. 10, from the Center City Revenue Finance Corp.

The corporation’s board voted unanimously in favor of a term for the tax breaks that was five years longer than the 15-year cap that has been the board’s policy. The 15-year PILOT was the recommendation of the revenue finance corporation’s staff.

Finance corporation board member Robert Spence moved the 20-year PILOT, citing the catalytic effect on the larger area by the project. Crosstown is projected to include commercial, retail and residential space in the building for founding partners Methodist Healthcare, St. Jude Children’s Research Hospital, ALSAC (the fundraising arm of St. Jude), Church Health Center and Memphis Teacher Residency.

The group still has several hurdles left, most notably $15 million in city funding the group is seeking through Memphis Mayor A C Wharton Jr.’s administration for infrastructure work, including some internal demolition of the massive Sears building.

After that, the project needs approval from the state of Tennessee and the National Park Service for tax credits that are integral to its complex financing.

“The stars are almost in alignment,” said developer Tony Bologna. “This is the one shot at getting the project done.

The 20-year payment-in-lieu-of-taxes agreement means Crosstown LLC will pay an estimated $11.9 million in city and county property and sales taxes over the 20-year term. Without such an agreement, they would have paid an estimated $53.8 million in property and other taxes.

The 15-year PILOT would have meant $7 million in city and county property and sales taxes over the 15 years; without that, they would have paid $40.3 million in property and other taxes.