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    ArtSpace building project receives 15-year PILOT


    ArtSpace Memphis has been approved for a PILOT to redevelop the United Warehouse building on South Main.

    Artspace Projects Inc. cleared another hurdle on its way to turning the former United Warehouse building into an artists’ haven.

    The Center City Revenue Finance Corp. board approved a 15-year tax abatement for the Minneapolis-based non-profit’s $13.1 million project, called South Main Artspace Lofts.

    The CCRFC, part of the Downtown Memphis Commission, approved the plan as laid out by its staff.

    The plan is to convert the former United Warehouse building and construct a new building for a total of 44 live/work residential units, 6,200 square feet of gallery and educational space and an outdoor arts garden and performance plaza.

    The project, scheduled to be completed by April 2015, will be 87,625 square feet — roughly 61,075 square feet in the existing building and 26,550 square feet in the new building.

    The property will have 30 surface parking spaces and 22 basement-level garage spaces.

    South Main Artspace Lofts will have one-, two-, and three-bedroom units and be rented to artists earning less than 60 percent of the area’s average median income.

    Average median income in Tennessee is $41,524, according to the Bureau of Labor Statistics.

    Artspace Projects is primarily using low-income housing tax credits for financing, but will also apply for historic tax credits.

    The PILOT will save Artspace Projects $83,574 in city taxes and $571,030 in county taxes through 15 years, according to its application.

    Construction is scheduled to start in October.