UPDATED NOTE: Per Memphis Business Journal, the Megasite Authority is approving PILOTs for Blue Oval suppliers with a standard national term of 10ys at 10-50% abatement. Compare this to Shelby County at 15 and 20 yrs at 75%, while at times abating pre-development taxes through the community reinvestment credit. Excessive PILOTs are not the answer to public economic development

As much as the elitist may find ways to promote Memphis as  a racist divided town, it is not. Blacks and whites have been harmoniously living together in Memphis for years. This racist narrative is often furthered by elitist public projects, like the Riverfront, claiming to promote diversity in a “divided” city. But oppressive corporate socialist elitism is the problem.

The fact is that oppressive elitism in support of fiscally liberal corporate socialism has been the policy product of racially diverse public-private governance in Memphis for years. Even though the former has not worked, the Downtown Memphis Commission (DMC) wants to lengthen PILOT terms for downtown property developers. PILOT terms were modified a few years back after external consultants advised the DMC that the standard PILOT term nationally was 10 yrs.

Given this consultation the DMC reduced the maximum PILOT term from 20 to 15 yrs for most PILOTs, still exceeding the national standard. There were other tweaks to DMC PILOTs, but the term adjustment was the primary change.

Now, with 500 current Shelby County PILOTs, well in excess of other TN municipalities by 10x, Chandell Ryan’s DMC wants to go back to an excessive 20 yrs for downtown PILOTs. Keep in mind, through a civicly sick design, abating boards make money every time a PILOT is awarded. Given this, such boards are financially incented to increase the generosity of tax abatements.

PILOTs that help reduce overall development and business costs are not the problem. After all, Ted Townsend of the Greater Memphis Chamber stated that, per Business Facilities Magazine that Memphis is the most affordable City in the United States. So why leave more yet more public money on the table? Would you lower the selling price of your home if it were the lowest cost home in the neighborhood? Of course not ! But local abating boards and the Chamber want to leave more public dollars on the table for corporations and developers as taxes skyrocket for full taxpaying small business and residents.

Besides, there is already a ridiculous $1.2 billion bunkered in the Sports Authority for scheduled downtown spend over the next 25 yrs. This also is a funding formula that needs to be publicly challenged. So, is anyone going to speak up on any of this?

Commissioner Henri Brooks, while citing the Assessors damning report on local PILOY policy, , began chairing a special Ad Hoc committee months ago to study PILOT reform. But the committee got an early holiday start and adjourned for the year on 10/17/24. Besides Brooks, two other Ad Hoc members include: Dr. Austin Harrison of Rhodes College and Memphis Shelby School Board member Natalie McKinney.

Then there is former Councilman Worth Morgan running for Chair of the Republican Party. In practice and sadly, both Republican and Democratic parties support fiscal liberal corporate socialism and high taxes in Memphis. Perhaps Morgan could help ignite a change in local Republican policy and practice.

So will any of the above individuals speak up against going backwards on PILOTs:

Will Henri Brooks sponsor and emergency resolution in favor of supporting national standards for PILOT reform or even perhaps propose  a PILOT moratorium?

Will Austin Harrison make public comment before the Downtown Commission opposing the DMC increasing the PILOT term?

Will MSCS Board member, Natalie McKinney,  make public comment confronting corporate socialism and the DMC,  while making the case for prioritizing education funding support of youth in an impoverished community?

And will Worth Morgan make public comment, opposing the DMC PILOT increases, as he runs for County Republican Party Chairman, while supporting taxpayers away from fiscal liberal corporate socialism?

I guess we will see. Meanwhile, here is a Ted Townsend Chamber statement that confirms PILOTs are not locally needed to subsidize business cost reduction: