Mane Street Memphis: Graceland Solar project moves forward, Chamber seeks federal funds

Happy Holidays, y’all. I’m hoping most of y’all are still enjoying the holiday break with friends and family and hope you’re enjoying that post-Christmas coffee while reading Mane Street this morning (or afternoon for those of you sleeping in).

As we’re nearing the end of 2023, there’s still been a fair number or project updates and movement for significant projects or initiatives in the area (more on that below). Additionally, I’ll have a little look ahead for 2024 coming soon before we officially say arrivederci to 2023. So, keep an eye out for that article.

In the meantime, let’s look at what’s cooking:

TVA, Meta $220M Graceland Solar Farm project underway

On Dec. 5, a special use permit was filed with the Memphis and Shelby County Department of Planning and Development for the Graceland Solar Project. The solar project is an 850-acre project from RWE Renewables in partnership with the Tennessee Valley Authority (TVA). The project is located along Singleton Parkway just north of the Loosahatchie River in Millington.

“Graceland Project has a long-standing history within Shelby County dating back to 2017 when we began leasing land for the Graceland Project and has worked closely with County government during the course of our development phase,” Scott Spence, RWE vice president of solar development, wrote in a letter of intent.

In the letter of intent submitted with the permit application, Spence said the special use permit was filed in response to a resolution passed by the Shelby County Board of Commissioners in September requiring any solar farm to have a special use permit. RWE previously filed a construction permit with the Department of Planning and Development in August.

In the letter, Spence also said the permit has added approximately $2 million to $3 million in total cost for the project, with RWE already investing $50 million in the project.

Josh McNeely of RWE said plans for the site have been in development since 2017, with a significant change in scope coming in 2020. The project was formally announced in May 2021. Today, the total cost of the project is north of $220 million and will include approximately 284,000 solar panels, he said.

The Graceland Solar Project is part of TVA’s Green Invest partnership with RWE and Meta. The 150-megawatt solar facility will allocate 100 megawatts to Meta for use at its data center in Gallatin. The total megawatts produced are equivalent to powering approximately 24,000 households, McNeely said. The other 40 megawatts will be used for redundancy within TVA’s system.

“TVA is an interconnected grid across seven states. All the power produced within our footprint goes on to the general grid. That’s a good thing – so that if there are interruptions on our system we have multiple redundant points to reroute electricity as needed,” TVA public relations specialist Scott Brooks said via email.

WR Graceland Solar LLC, an Austin, Texas-based affiliate of RWE, acquired 125.54 acres at 5860 Pleasant Ridge Rd. in April 2023 for $1.7 million, according to the Shelby County Register of Deeds. The remaining acres for use in the project are located on 13 parcels of land controlled by the Memphis-based DHR Farming Partnership. The land is under a 35-year lease, with an additional 5-year option.

Once the lease is up, RWE could extend use for the solar panel farm or dismantle the farm entirely.

Construction of the Graceland Solar Farm is expected to create more than 150 construction jobs along with two to four full-time employment positions for maintenance operations once completed. The site is also expected to generate more than $24.9 million in local property tax revenue, McNeely said.

McNeely said the next steps will be to now file construction permits in early 2024, with an estimation construction will take approximately 12 months to complete.

Memphis Chamber among finalists for $20M in federal funding

On Dec. 20, the Greater Memphis Chamber of Commerce was announced as a finalist for the U.S. Department of Commerce’s Distressed Area Recompete Pilot Program initiative.

The program is part of the Economic Development Administration and the Chamber’s Prosper Memphis 2030 Recomplete Plan is one of 22 finalist eligible for up to $20 million in federal funding.

“As one of just twenty-two finalists from a pool of over 500, this is a testament to the talent and potential in our community. Memphis has a big role to play in America’s economic resurgence, and I want to congratulate the Memphis Chamber Foundation on putting together a strong grant application,” U.S. Congressman Steve Cohen said in a statement.

The program is a two-part competition. With the Chamber being selected as one of the phase 1 finalists. Those 22 finalists will now apply for implementation grants for their respective Recomplete Plans. Those grants will range from $20 to $50 million.

The Chamber’s proposal was the only finalist selected within Tennessee. The proposal aims to improve career pathways in economically distressed areas, with a key focus on the 25 to 54-year-old demographic. The 2030 Recomplete Plan is part of the Chamber’s ongoing Prosper Memphis initiative which aims to create 50,000 new jobs by 2030, with a 50% employment goal for minorities in that newly created workforce.

Pathway provides $9.5M in funding for Northside Square

On Dec. 18, Nashville-based Pathway Lending announced it was providing $9.5 million in New Market Tax credits for the $78 million Northside Square redevelopment project at 1212 Vollintine Ave.

The Works Inc. and ComCap Partners are redeveloping the former Northside High School site into a 270,000-square-foot mixed-use facility. The developers held a ceremonial groundbreaking for the site earlier on Dec. 8.

Northside Square is expected to open in 2024 and will help create 320 construction jobs and 141 permanent full-time jobs.

“This $9.5 million allocation is our second New Markets Tax Credits investment in Memphis. It is another indicator of commitment to advancing equity and opportunity in under-resourced neighborhoods across the city. This investment aligns with our mission to catalyze positive and lasting impacts in communities, and the creation of 450 jobs through this project is significant,” Pathway Lending executive vice president Hank Helton said in a statement.

New site plans approved for 1663 Autumn Ave.

On Dec. 12, the Memphis and Shelby County Board of Adjustment (BOA) approved a conditional use permit for the former Evergreen Presbyterian Church sit eat 1663 Autumn Ave. in the Evergreen Historic District.

The new plans, proposed by Memphis-based CNCT design, will convert the site into a coffee shop with artist studios and meeting space. A 2,570-square-foot meeting and gathering space will be located on the upper floor of the building, in the former church area. The space will also include a 2,630-square-foot coffee shop and 2,630 square feet on the lower floors dedicated for artist studios on the lower floors.

In November, the BOA approved a waiver to hear the new site plans without waiting the usual six months after a proposal was submitted for the site. In September, the BOA rejected a mixed-use plan for the site that would’ve converted the 10,000-square-foot site into 10 apartments and a café and bakery on the lower floors.

The initial plan for the site was met with significant neighborhood opposition, as was the cnct-led proposal. The BOA staff report included 17 letters in support of the project with 108 letters in opposition. The opposition concerns mirrored those from the previous iterations proposed in September including apprehension towards the building’s commercial use, an increase in vehicular traffic and preference for the site to be single-family use instead.

Mane Street Memphis is a bi-weekly commercial real estate and economic development roundup.

Neil Strebig is a journalist with The Commercial Appeal. He can be reached at neil.strebig@commercialappeal.com, 901-426-0679 or via X/Twitter,@neilStrebig

This article originally appeared on Memphis Commercial Appeal: TVA, Graceland Solar Project is underway in Shelby County