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The Center City Development Corp., an affiliate board of the Downtown Memphis Commission (DMC), approved a quartet of development loans Wednesday.
A $100,000 development loan was approved for a new 8,000-square-foot fine dining restaurant in the former Puck Food Hall site at 409 S. Main St. The new restaurant will be called Fable.
The development loan will help cover a portion of the estimated $1.4 million buildout for the property. The majority of the funds from the loan will be used toward approximately $155,000 in interior renovation including electrical and sprinkler system improvements. Building owner Jared Welch said he would cover the remaining $55,000.
Brett Roler, DMC senior vice president of planning and development, said this was a situation where there was a financial gap, and the funds would help ensure that the project could be completed on time and help bring a vacant Downtown space back online.
Fable will be located on the ground floor of the South Main Street building. The historic property, which dates back to 1910, is also home to the Luck Cowboy speakeasy and an event space on the third floor. Lucky Cowboy is located in the basement of the property. The second-floor space is available for lease. According to the application, Fable, Lucky Cowboy and the event venue are all owned and operated by Welch.
During the meeting, Welch said Lucky Cowboy will have its grand opening on this month’s Trolley Night on Oct. 27. The bar and longue space began as a pop-up in the summer of 2022. With the loan approval, Welch said he expects to open Fable in early 2024.
“I for one am very excited about this building coming back to use again,” said Anton Mack, Center City Development Corp. board member.
Welch is a partner in 409 S. Main LLC, which purchased the property in August 2021 for $2.9 million, according to the Shelby County Register of Deeds.
Visible Music College
The Center City Development Corp. approved a $200,000 forgivable loan for the Visible Music College at 200 Madison Ave. The loan will be used for building improvements including HVAC upgrades along with roof and elevator repairs.
The loan is part of a $7 million worth of financial aid for the college. The college, which opened in 2011, is looking to buy its current mortgage and reinvest an additional $525,000 to establish a new line of credit to help with U.S. Department of Education funding eligibility.
The college has also received a $3.5 million donation from an anonymous foundation. The donation is contingent on the institution raising a $3.5 million match by Nov. 1.
Roler called the situation atypical and that the funds are structured as a forgivable 10-year, 1% interest loan, but would transition into a grant structure if all prerequisites are met. Those conditions are:
- The loan would be void if repair work does not begin by Oct. 31, 2024.
- Once interior improvements begin, construction must be completed within 18 months.
- The college must successfully raise the $3.5 million matching funds. The CCDC funds will only be approved as the “last dollars in” that require a $3.5 million match.
- The 25% MWBE spending goal is required
- Any exterior work will need to be approved by the Design Review Board, an affiliate DMC board
- Funds will need to be repaid in full if the college closes, the property at 200 Madison Ave. is sold, 50% or more of the property is vacant, and/or a substantial portion of the facility and student population moves to a different location by Dec. 31, 2029.
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Ken Steorts, Visible Music College founder and president, said the college is committed to continuing educating students in Memphis and helping attract future creative talent to the city.
Roler said while the request is unusual, maintaining the college there is beneficial to an area of Downtown that is seeing momentum including the potential restoration of the adjacent Sterick building.
“Think this is a great opportunity and reason why we exist,” Center City Development Corp. board member Elizabeth Low said.
After Burners Cigar Bar
The board also approved a $30,000 Retail Tenant Improvement grant for a new cigar bar in South Main.
The aviation-themed After Burners is looking to open in the former site of Walking Pants retail store alongside The Arcade and Max’s Sports Bar. The improvement grant is being used in part of a $120,000 buildout at 109 G.E. Patterson Ave.
Owner Marvin Roddy is looking to convert the 1,300-square-foot space into a cigar bar with a walk-in humidifier, retail section and a coffee and beer bar area for guests, according to the DMC application.
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340 E. Georgia Ave.
A $25,000 Good Neighbor Grant was also approved for façade and sidewalk work at 340 E. Georgia Ave.
The property owner, Andre Stephens of GreenGlove Capital LLC, purchased the property in 2017 and has been actively restoring the previously blighted property. The development consists of three single-story multifamily buildings with a combined total space of 6,048 square feet.
Neil Strebig is a journalist with The Commercial Appeal. He can be reached at [email protected], 901-426-0679 or via X/Twitter,@neilStrebig
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