Falls Building's Conversion to Now Cost $79M; Owners Apply for PILOT

Falls Building's Conversion to Now Cost $79M; Owners Apply for PILOT

New York-based development firm Left Lane has recently filed a request for a 12-year payment-in-lieu-of-taxes (PILOT) program to help fund the company's ambitious $79 million conversion of Downtown Memphis' historic Falls Building. The project, which aims at revitalizing the iconic structure and its surroundings, now faces an increased budget due to unforeseen challenges.

The renowned Falls Building, constructed in 1912 and located at the heart of Downtown Memphis, is set to undergo significant renovations under Left Lane's supervision. The proposed plan features transforming this architectural gem into mixed-use spaces – including luxury apartments, retail units, office spaces, and top-quality amenities – with sustainability as one of the main focuses throughout the renovation process.

Left Lane spokesperson Susan Thomas explained that "the increase in construction costs has been largely driven by supply chain issues resulting from COVID-19." She added that other contributing factors include rising labor expenses and unexpected structural complications within the aging building itself.

To tackle these financial setbacks head-on and keep their vision on track for completion within schedule constraints, Left Lane requested assistance through a PILOT program. According to Mark Patterson from Memphis Economic Development Growth Engine (EDGE), if granted approval by local authorities and stakeholders involved in evaluating such applications:

Memphis Mayor Jim Strickland expressed cautious optimism regarding Left Lane’s application:

Local business owners are also hopeful about what this much-needed facelift could mean for their businesses. Jennifer Miller-Smith who owns a boutique close-by mentioned,

The project is expected to have a far-reaching impact on Downtown Memphis in terms of both economic growth and overall urban appeal. If Left Lane’s PILOT request receives approval from authorities, construction will likely commence immediately upon securing necessary permits.