Construction

IKEA in Memphis will Opt Out of PILOT Tax Breaks

Swedish furniture retailer IKEA will opt out of its 11-year payment-in-lieu-of-taxes (PILOT) break because the company failed to meet program requirements, the Daily Memphian reports. IKEA initially agreed to hire 175 employees with an average wage of $41, 011, however, currently employs 147 people with an average wage of $36,944. The company may get another year of incentives if it follows through on environmental projects such as water conservation efforts and installing a solar powered roof.

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U.S. Department of the Treasury Releases Updated Rules Regarding Opportunity Zones

The U.S. Department of the Treasury on Wednesday released its second set of proposed regulations regarding the Opportunity Zones tax incentive, The New York Times reports. Introduced in the 2017 Tax Cuts and Jobs Act, the initiative is intended to encourage development in economically distressed communities by allowing investors to defer, reduce or eliminate taxes on some capital gains when the investments are held for at least 10 years. Critics argue that the incentives, as introduced, would benefit real estate developers, not small businesses, and speed up the displacement of low-income residents in gentrifying areas. The new rules seek to quell some of these concerns, also allowing long-vacant properties to immediately qualify for the tax breaks and provides investors incentives even if the business focuses on exported goods or services to markets outside of the zone, pending the money is reinvested in another qualifying business or asset.

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Gov. Lee to Seek FEMA Assistance Regarding Flood Damage

Gov. Bill Lee on Thursday renewed his promise to secure FEMA funding to aid with flooding damage in the state, the Knoxville News Sentinel reports. Tennessee will surpass the agency’s damage threshold after an unprecedented bout of rain throughout the past couple of months. Though state-wide figures have yet to be made available, it is estimated that Knoxville alone took a $43.5 million hit because of flooding.

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Construction Law Forum Programming Available Online

New videos from this year’s Construction Law Forum are now available to purchase on the Tennessee Bar Association website. Topics for these videos include: 
These online programs offer an opportunity for you to brush up on essential issues related to the practice while allowing the flexibility to work around your busy schedule in the pursual of CLE credit. You can view other upcoming programs and online video options on our CLE webpage.
 
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Nashville Mayor Briley Expected to Announce Major Public Housing Initiative

Nashville Mayor David Briley is expected to announce plans later this month for the allocation of millions in city funds to support redevelopment of aged public housing, The Tennessean reports. If approved, Briley’s plan will take a three-pronged approach —a ten-year commitment to pay for redevelopment projects, city-funded infrastructure at those sites and earmarks for the Barnes Fund for Affordable Housing Innovation, which provides grants to affordable housing developers. The city recently took ownership of its public housing stock from the federal government, to facilitate private borrowing for new construction and upgrades.

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Why All Apartment Buildings in America Look the Same

Wood-framed balloon structures have become a ubiquitous part of our cityscapes, seemingly popping up overnight and changing the face of urban and suburban areas across America. No matter where you are, the buildings are ostensibly homogenous — blocky, colorful and three to seven stories tall. Bloomberg News examines the rise and controversy surrounding these ’stick framed’ structures, including why some municipalities seek to curb construction of the buildings in densely populated areas altogether.

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Tennessee Solar Farm Information & Welcome Center Nears Opening

After many delays, the new Interstate 40 Welcome Center and Solar Exhibit near Memphis is expected to be completed in late November, the Daily Memphian reports. Although the center was essentially finished a year ago, a final inspection performed by the Tennessee Department of Environment and Conservation determined that several changes needed to be made before it could open. These changes required change orders to the construction contract, which proved to be difficult because of the number of state agencies involved in the project. Once open, people visiting the $3.4 million center will be able to experience a nearly 360-degree view of a 25-acre field containing more than 20,000 solar panels as well as a circular, interactive exhibit about solar power in Tennessee.

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Construction on Obama Presidential Center Faces Legal Delays

A federal judge announced yesterday that a trial date will be made in December regarding a lawsuit delaying the construction of the Obama Presidential Center in Chicago, Fox News reports. One environmental group believes the project should not be built in Jackson Park, citing a principle known as the public trust doctrine. However, the city does not believe the project violates state law. Another environmental group contends that by building the center on park land, it would violate the Park District code and state law.

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Nashville MLS Stadium Approval Spurs Quick Fairground Reconstruction Plans

Nashville’s fairground reconstruction plans are moving forward following last week’s Metro Council approval of a $275 million Major League Soccer stadium, The Tennessean reports. Construction to begin the consolidation of multiple buildings into a newly transformed expo center is slated to begin mid-October. The new expo center will sit on a currently vacant, lower-elevation piece of fairground land, and it will house the Nashville Flea Market as well as other events. Demolition and construction for the MLS stadium are scheduled to begin after the expo center is completed. The future 30,500-seat stadium and 10-acres of mixed-use private development are planned to sit on higher-elevation fairground land.

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Construction on Nashville's Broadwest Two-Tower Development Scheduled for Fall

The West End Summit site, home to the infamous and recently drained ‘Lake Palmer,’ may see construction beginning as soon as this fall, The Nashville Post reports. Huntsville, Alabama-based Propst Development plans to build two mixed-use buildings which will be called Broadwest and encompass a collective 1.2 million square feet at 1600 West End Ave near the split with Broadway. Local partners on the project include:

  • Chartwell Hospitality, a Franklin-based hotel operations and development company, to co-own and operate the 14-floor luxury hotel;
  • Parks Realty, a Nashville-based real estate agency, to lead condominium sales;
  • The Nashville office of Jones Lang Lasalle for office leasing;
  • Atlanta-based Cooper Carry as the lead architects of Broadwest;
  • The local offices of Turner Construction Company and Hoar Construction as general contractors;
  • Nashville-based Premier Parking to oversee the parking component.

The project could carry a price tag upwards of $500 million.

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