MEMPHIS | Development News

[arkitekte]

Delta announces more cuts at Memphis International
http://www.bizjournals.com/memphis/n...t-memphis.html

Delta Air Lines Inc. today announced that it was calling for a “reduction to more than 40 peak-day departures effective Dec. 3” at Memphis International Airport.
The Atlanta-based airline will also reduce its staff in Memphis by at least 126 positions.
The news comes just a few months after the airline announced that it was dehubbing the Memphis Airport.

“This is not completely unexpected news, but it is nonetheless disappointing,” said Scott Brockman, Chief Operating Officer for the Memphis-Shelby County Airport Authority. “This is also an opportunity to bring additional low-cost air service providers to Memphis, as well as expand service with existing carriers. Southwest Airlines will soon make its debut, and Frontier Airlines has announced its return in March. That’s a good start, but we’re committed to continued, relentless pursuit of additional frequent and affordable air service.”
Delta has not yet provided specific details about the flights that will be eliminated.

[kingchef]

i wish delta would kill off the prey and be done w/ it and the drama. half of what has been reported by their company i just don't believe. much of the right-sizing seems to be blamed on the memphis market. while some of that may be true, the publicity of potential flyers using little rock and the nashville airport seems to have escaped publication of lost revenue by the airline. i may have overlooked the figures over the years, but i don't believe that i have ever known how many flights per month were lost to these other airports over the years. too, the airline is the winner in the scenario of the driver, who drives from 3 to 4 hours, pays the parking, and pays for the gas to get to the plane, where the second leg of the traveler's journey begins. afterall, the arline could care less, after all, it is not their dime.

my point is delta seems to have gutted the airport, taken the most profitable routes, and has essentially thumbed it's nose at memphis. what happened to the (while the new bigger and improved atlanta airport was being grown) sensible idea that memphis international would carry flights to the west and northwest? i have generally always flown delta, but i guess people, just as companies, change. memphis seems to be a great airport, and i just don't understand why delta can't swiftly and w/ precision kill the prey and move on. when all is said and done, will anyone look back on the hubbing of the airport as a real growth opportunity for memphis? did it really help bring industry, manufacturing, technology and more to the city? in looking at various airports throughout the country, one can pretty much look at the entire country and make or break hubs, focus airports, busy vs. get by. maybe if airports were treated more as hospitals, where need of occupancy certificates are issued, prior to the building of a hospital, the flying public would be better off. at any rate, i think the situation, past and present, has been much more than just delta profits.

[SterickFan]

Originally Posted by arkitekte

Delta announces more cuts at Memphis International
http://www.bizjournals.com/memphis/n...t-memphis.html

Shocker. With the blatant marketing to low cost airlines, and apparently with some success, Delta must know their profit margin is...has been...shrinking at Memphis. With the arrival of Southern Airways, if you don't mind the non-jet kind of travel, the market is beginning to successfully make Memphis Int'l a lower market airport. It will still take some time, but even for an avid Delta frequent flyer through the years, good riddance. Memphis has never been the right size for a hub, so let the lower fares begin. With that will come the loss of some non stop destinations. Lower fares are becoming more attractive to me though.

[arkitekte]

Originally Posted by SterickFan

Shocker. With the blatant marketing to low cost airlines, and apparently with some success, Delta must know their profit margin is...has been...shrinking at Memphis. With the arrival of Southern Airways, if you don't mind the non-jet kind of travel, the market is beginning to successfully make Memphis Int'l a lower market airport. It will still take some time, but even for an avid Delta frequent flyer through the years, good riddance. Memphis has never been the right size for a hub, so let the lower fares begin. With that will come the loss of some non stop destinations. Lower fares are becoming more attractive to me though.

Yep, eventually the only place you'll be going from Memphis on a Delta jet is ATL, MSP, DTW, SLC, CVG, and LGA/JFK. Its going to happen sooner or later, the only problem with that is the cutting of Delta flights to certain destinations (or the amount of flights to various locations being cut) and their replacement by another carrier. I personally don't have a problem with connecting flights, especially if I'm racking up flyer miles in the process, but I'm still in my 20's and a lot of people don't want to go through that hassle, but those days for MEM are probably over.

I'm curious to see the volume of flights that Southwest will add. I'm also curious to see whether or not Frontier will add additional routes from MEM (I'm probably heading to Seattle in March, so I'll be looking forward to what their fares will be).

I don't have a problem with the small planes that Southern Airways Express flies, I haven't flown them yet, but I'd like to see them expand their services, although I don't see them flying anything larger than their 9 seat Cessnas and King Airs to avoid TSA and certain FAA regulations.

[kingchef]

personally, i won't fly the small carriers anymore. i read the actuarial report for regional planes---jet and prop---and i was astounded that they would even be allowed to service as a public transportation option by the ffa. as for flying direct flights, i think when it comes down to it---unless you are speaking of the really wealthy, the upper corporate officers, or those who might splurge once or twice every year or two by flying first class---it really is about the best price for the average sky dog. feeling that they got a deal comes only through the saving of dollars, and memphis is no different, in that regard, than any other city. i won't continue to be loyal to delta. sort of like the song by one of the jackson girls (i think) "what have you done for me lately."

i have wondered about american increasing flights out of memphis??? another question, anyone have any idea how many corporate jets and jets which carry vip clients, who own their own planes or chartered jets that carry from 9 to 22 or so passengers into and out of memphis daily? i understood that it was quite significant.

memphis international has more plans for expansion, upgrades, and the numbers were rising, prior to the convenient oil crisis. over 10 million about 3 years ago to a bit more than half of that number 7 or 8 months in to this year. if tourism and city destination for entertainment is going to continue to be a target for the area economy, then i don't see public officials of the city and county sitting back doing nothing to continue to growth what has already been rowed, hoed, and planted. the dramatic increases of ups and fedex is not going to reduce business, even though the landings fall into a separate sector. regardless, our airport is a very decent airport, and someone(s) will exploit the market.

is there any official word on what is proposed to be built across the street from the proposed bass pro shop, and if the convention hotel, even though it has a new owner, will go ahead w/ the 10 story addition? also, will the sheraton build another large hotel somewhere downtown? i won't even ask if the 11 story dream hilton will ever be built. i think they should have changed the name to the chisholm trail instead of the heritage project. we probably could have walked the chisholm trail more quickly than getting tenants---guess buildings have to come before tenants---placed in the area.

[arkitekte]

New Whole Foods could be headed to Germantown
http://www.bizjournals.com/memphis/n...headed-to.html

The second Whole Foods location in the Memphis market might just be around the corner.
Cypress Realty Holdings Co., in concert with Ford Jarratt Realty & Development Co., have submitted plans for the new organic grocer to the City of Germantown.
The store would occupy 41,000 square feet on the southeast corner of Poplar Avenue and Pete Mitchell Road.
The project must still gain approval at a public meeting Dec. 3 at the Germantown Planning Commission. After that, the project will be sent to the Mayor and Board of Aldermen for approval on Dec. 19.

[XchillX]

I was searching around for different development pages, and I decided to look up this old friends website, To my surprise, it's actually back up after years of being on hold. Not to mention the fact their leasing/ room reservations page is up and running!

Here's the link to the reopened page:
http://www.onebeale.2dimes.com/


pict- http://www.carlislecorp.com/onebeale.html

PS: I'm excited about the new whole foods! I'm glad they've expanded the current one and hope they'll open one in midtown soon. Midtown's just a perfect location for one.

[arkitekte]

Originally Posted by XchillX

I was searching around for different development pages, and I decided to look up this old friends website, To my surprise, it's actually back up after years of being on hold. Not to mention the fact their leasing/ room reservations page is up and running!

That's good news to hear. I just checked out the website. I remember going to the website about 5 or 6 months ago and all that was up was maybe a contact page. I'll see if I can find out some more information.

[arkitekte]

Overton Square is looking pretty good...here are some cell phone shots from lunch today:









And Hattiloo is well on its way...




I wish there would be another development, commercial or residential that would eliminate the surface lot on Cooper. Hopefully that will be in the master plan for the area.

[Sooper_rebel]

So, is it still planned to be the tallest building in Memphis? (If ever actually built)

[arkitekte]

Originally Posted by Sooper_rebel

So, is it still planned to be the tallest building in Memphis? (If ever actually built)

Not that I know of. Someone correct me if I'm wrong, but it was scaled down some before to where it would be built in phases, the main condo tower with 28 floors, and then the smaller hotel tower located to the east with 15, instead of the two towers on one base.

The hotel was to be the first tower built.

This was the first design (which is and has always been the one associated with their website).


And this is the most recent design (2008 maybe?).

[DoomJ]

Originally Posted by arkitekte

Not that I know of. Someone correct me if I'm wrong, but it was scaled down some before to where it would be built in phases, the main condo tower with 28 floors, and then the smaller hotel tower located to the east with 15, instead of the two towers on one base.

The hotel was to be the first tower built.

This was the first design (which is and has always been the one associated with their website).


And this is the most recent design (2008 maybe?).

Actually I thought the bottom one was the original proposal. If I remember correctly the twin tower proposal came after and was originally taller, but, if you look at the website you can tell it's definitely shorter now.

But, I could be wrong, it's been a good while. I'm just happy to see some life in it. Just half this project going forward would be huge for us.

[arkitekte]

Originally Posted by DoomJ

Actually I thought the bottom one was the original proposal. If I remember correctly the twin tower proposal came after and was originally taller, but, if you look at the website you can tell it's definitely shorter now.

But, I could be wrong, it's been a good while. I'm just happy to see some life in it. Just half this project going forward would be huge for us.

You might be right, the main reason why I was thinking the bottom rendering was the latest one was the fact that the hotel and condos were seperated allowing for it to be developed in different phases. In any case, the first rendering looks the best, IMO.

[arkitekte]

Actually I just found this CA article that answers the original question and gives more info on what they were going with as far as developing it in stages...that still doesn't explain why they have an altered initial rendering on their website. Also the reason why they broke the development up into phases might not be present anymore.

Here's the article.

Economic crisis forces One Beale developer to separate project into segments
http://www.commercialappeal.com/news...tep-at-a-time/

As the economic crisis deepens, developers of One Beale announced they're splitting the $186 million mixed-use project into bite-sized pieces, starting with a $25 million-$30 million low-rise hotel.

Initially planned as high-rise luxury hotel, condominiums and office space, One Beale is shifting gears as financial market woes mount. Plans call for the second-tallest building, after 100 North Main, on a premier site on Beale Street overlooking the Mississippi River.

"We have continued to see our risk increase while our margin remained static," Carlisle said. "Combined with the liquidity being squeezed out of the system for big projects like this, we decided that it was more prudent for all parties involved to develop One Beale in steps."

Carlisle was confident the project will go forward, but with the residential component shoved back to the fourth and final phase.

Others in the Downtown development community said Carlisle made the right call.

So even though One Beale has enjoyed strong sales in a tough market (25 of 66 condos were presold), the developers decided to focus on the aspects of the project that can be built sooner.

Blankenship said it's unknown whether the residential phase will be condos or rental units.

Other features remain in place, but will be built as second and third phases: the 240-room Hyatt Regency Memphis Hotel with grand lobby, private bar, two restaurants, meeting space, spa and 10th floor pool and sun deck; and 29,500 square feet of Class A office space.

I didn't know they had sold that many units...that's pretty impressive.

Blankenship, president and CEO of Mercury Investment Management, said developers want to start with a slam-dunk: a 150- to 200-room limited-service hotel at the southwest corner of Beale and Front. It was planned to be built after the tower.

The low-rise hotel could be completed in 18 to 24 months, and Blankenship reckoned it may be five years before the rest of One Beale can be completed.

"We can get a limited-service hotel done today," Blankenship said. "Our market study supports that. We have the capital to do that. We have the partner that wants to do it."

Yet, there's no limited-service hotel.

[zookeeper]

Well that totally explains the Mayor's intent on extending the party zone all the way to the WEST instead of EAST.

[arkitekte]

Originally Posted by zookeeper

Well that totally explains the Mayor's intent on extending the party zone all the way to the WEST instead of EAST.

Lol, especially when a few years ago their main intention was to develop the area east of Beale. In any case, something the size of One Beale and something with that type of potential should be catered to, if this is the intention of the mayor by proposing to extend Beale to the west. Hell, South Main is active, Beale is active, and Main is active...Beale Street landing needs help becoming active and something like One Beale will help it some. I think that a restaurant will be more likely to sign a lease there if there's potentially 300 more hotel rooms and or 300 or so more residents a few hundred feet away.

Let's also not forget the Chisca redevelopment which will bring residents that will also provide customers for bars/restaurants/ night clubs. One could argue that the demand is now (or soon to be) there to the west so sure, expand there now and in the future if Beale or another smaller entertainment district needs to be developed to the south of the Forum let it happen then.

[zookeeper]

I was in Memphis last month as I am every few months and decided to take a much closer look at the Pyramid development. I was not able to go inside of course but driving out I noticed that the overpass earthquake retrofit is FAR from being completed. There is no way Bass Pro could have opened in December 2013 so this explains why no one is upset at all. It's probably a good 4 more months of retrofit on those skyway piles.

[MIRYDI]

Here is an article discussing an expansion of the convention center.

Should the Cook Convention Center be expanded?
http://www.bizjournals.com/memphis/b...onvention.html

I'm not familiar with the convention center there. If they were to expand it, how do you guy's think they would go about it? Can it be expanded on it's existing footprint by building on top, or would it have to be done on land surrounding the CC? If so, is there any land availiable nearby to do this?

[arkitekte]

Originally Posted by MIRYDI

I'm not familiar with the convention center there. If they were to expand it, how do you guy's think they would go about it? Can it be expanded on it's existing footprint by building on top, or would it have to be done on land surrounding the CC? If so, is there any land availiable nearby to do this?

I don't know how they would expand it. To the immediate east of the convention center is the Sheraton (formerly Marriott), to the north is 1-40 which is raised in that part of downtown, to the immediate south is the Cannon Center, and to the west is Front Street. The convention center has one section that Front passes under, and across Front there's a vacant lot and then a parking lot, but there's not a ton of space there. I don't know if it could be expanded upwards either depending on structural loading.

There's land to the north in the Pinch District (don't think along the lines of the land that the MCC covers). The majority of undeveloped land sits toward the south of downtown and to the east of the South Main District.

Here's a blog post that Steve Ross wrote earlier today.
http://www.vibincblog.com/?p=11100

[arkitekte]

French Quarter Deal Collapses
http://www.memphisdailynews.com/news...eal-collapses/

A Texas-based group had inked a deal to purchase the long-vacant French Quarter Suites Hotel near Overton Square, but the proposed sale fell through the cracks.

Austin, Texas-based ASC Management had until Oct. 31 to close on the purchase of the 105-room inn at the northeast corner of Madison Avenue and Cooper Street but did not complete the sale.

The hotel, which opened in 1984, was purchased by Donald W. Pemberton, Ron Kirkpatrick, Garnett Murphy, Rex Amonette and Carroll Brunthaver after it closed in 2008. The ownership group, called FQI LLC, bought the property for $1 million in 2009. The Shelby County Assessor of Property appraised the property at $1.5 million.

It is the second time in as many years that a potential deal to rejuvenate the hotel collapsed. In 2012, a contract from two local partners to transform the 77,866-square-foot structure at 2144 Madison Ave. into a Comfort Suites fell through after it faced fierce opposition from neighbors who wanted a more upscale, boutique hotel.