Business incubator to seek federal stimulus money for expansion

Downtown development officials gave their backing Tuesday to a business incubator's plan to seek federal stimulus dollars for a major expansion.

The Center City Revenue Finance Corp., financial arm of the Center City Commission, voted to join EmergeMemphis in applying for $500,000 in American Recovery and Reinvestment Act funds through the Economic Development Administration.

The action was a formality related to a property tax freeze or payment in lieu of taxes for EmergeMemphis' building at 516 Tennessee.

EmergeMemphis bought and rehabilitated the building to house business and technology incubator or accelerator programs for early stage companies and high-growth startups. Under terms of the tax freeze, CCRFC is the building's nominal owner, and EmergeMemphis makes payments to the city and county based on tax assessments before the property was improved.

During the grant application process, federal officials said they wanted the revenue finance corporation to be co-applicant because of the ownership issue, although Center City has no other role.

The incubator has 26 businesses in various stages of growth, and the expansion would add room for another 10 to 12 businesses, said Gwin Scott, president of the 10-year-old organization.

"This is really just the completion of what we've been working on for a while," Scott said.

EmergeMemphis would couple a stimulus grant with funding from other sources for an estimated $1.5 million project to finish fourth-floor and rooftop facilities.

Officials hope to start the project this fall and have it finished about six months later.

The revenue finance corporation approved the project contingent on allowing the city of Memphis an opportunity to also sign on as a co-applicant. Board member Robert Spence said he didn't want to breach protocol by not giving city officials a chance to be involved in the project.

Center City Commission president Jeff Sanford said EmergeMemphis delivers important benefits for Downtown. It has a track record under Scott of nurturing entrepreneurial activities, and some of the building's tenants have moved on to other Downtown spaces.

-- Wayne Risher: 529-2874