Ryan Poe

USA TODAY NETWORK – Tennessee

The city of Memphis is planning a major makeover of the "gateway" to Downtown anchored by a $1 billion expansion of St. Jude Children's Research Hospital and a multi-million renovation of the Memphis Cook Convention Center.

In a City Council committee meeting Tuesday, city officials and Rick Shadyac, CEO of St. Jude fundraising arm ALSAC, announced the "Bicentennial Gateway Project." Named for the city's 200th birthday in 2019, the plan ties together several large developments already in the works: St. Jude's expansion, the convention center revamp, Pinch and Uptown district improvements, and redevelopment of Mud Island River Park and the riverfront.

"We named this the Bicentennial Gateway Project because we believe this is a game-changing initiative that can reshape the northern section of our Downtown for the next 100 years," said Memphis Housing and Community Development Director Paul Young.

The projects could drastically improve the view for the more than 40 million people who cross over the Hernando DeSoto Bridge every year. But in addition to the aesthetic changes, Shadyac said he hopes St. Jude's "once-in-a-generation expansion" will boost the hospital's economic impact from $2.5 billion annually to as much as $4 billion and create 1,800 jobs, spurring private development in the Pinch and surrounding areas. He showed architectural renderings of new buildings with retail on the ground floors and residential above.

"It's my real desire to create the Pinch District in a way that it's going to be a great place to live, work and play," he said.

The city and Shelby County committed to spending $25 million in tourism development zone (TDZ) and tax-increment financing (TIF) funds on qualified public uses in the surrounding area, in addition to the $12 million St. Jude is getting from the state. Shadyac said he hopes Gov. Bill Haslam will include more incentives for St. Jude in his upcoming fiscal year budget.

Officials in Mayor Jim Strickland's administration plan to submit an application to the State Building Commission soon to amend the existing Downtown TDZ to make Mud Island and the riverfront qualified public uses. Without that designation, the city can only use TDZ money to improve public infrastructure around qualified public use facilities. Currently, the convention center and the Bass Pro Shops-occupied Pyramid are the only qualified public facilities accepted by the state.

Also, city officials said they planned to present a plan to expand the TIF district within 60-90 days to include the area between St. Jude's campus to the west and I-40/240 to the east, both the north and south of the segment of I-40 running through Downtown. The council and county commission would need to approve the expansion before construction can begin later this year on housing projects and public infrastructure improvements in the area.

The administration of the TIF funds would be done by the new Community Redevelopment Agency administrator, once the person has been hired. Projects that could receive TIF funds include the reconfiguration of the intersection of Poplar and Alabama near Morris Park, work at Legends Park near Le Bonheur Children's Hospital, and connectivity between districts.

Also within 60-90 days, the city should get a cost estimate for the renovation of the Cook Convention Center, said Memphis Chief Operations Office Doug McGowen. Funding for the renovations, which could include additional exhibit and ballroom space, could come at least partially from the TDZ funds.

"We think we can do more than just a facelift," he said.

Council OKs MLGW auto-donate

Also Tuesday, the council unanimously approved a resolution in its regular meeting to support the automatic enrollment of Memphis Light, Gas & Water Division customers in the Share the Pennies program, which provides weatherization grants to low-income homeowners.

If the MLGW board also approves the proposal, MLGW would begin rounding up customers' bills to the nearest dollar with the difference going to Share the Pennies after a six-month public awareness campaign.

'Gateway' presentation