State taxpayers are anteing up $5.5 million toward the $27 million renovation of Memphis’s vacant Peabody Place mall into the new corporate headquarters for ServiceMaster, which is moving Downtown from its current East Memphis offices, reports the Commercial Appeal.
The State Funding Board on Thursday approved a $5.5 million grant for the project. The money is coming through the Tennessee Department of Economic and Community Development’s FastTrack economic development program that provides incentives for businesses to relocate to the state and, increasingly, to keep existing businesses here.
ECD spokesman Clint Brewer said the grant is the total state incentive for the project and will help pay for construction and renovation of the 15-year-old, 328,000-square-foot Peabody Place for use by ServiceMaster.
The state money was the first public incentive to be disclosed for the ServiceMaster relocation announced last Friday by the home and commercial services provider’s chief executive, Gov. Bill Haslam and Mayor Jim Strickland, who declared it “the most significant corporate headquarters announcement in Downtown Memphis in a generation.”
Downtown officials are proposing a $1 million grant to help ServiceMaster with an estimated $14,795,000 in tenant improvements.
…Landlord Belz Enterprises expects to spend about $12 million to retrofit the building.
On Tuesday, Belz is scheduled to ask another commission board, the Center City Revenue Finance Corp., to approve an amendment to Peabody Place’s existing tax abatement.