Before any investigation, local Memphis and Shelby County Legislative bodies should read, into the public record, during full regular session, the minutes of the Depot Redevelopment Corporation (DRC) and The Economic Development Growth Engine (EDGE), subject matter having to do with DRC transactions. DRC was originally funded to revitalize the economically dislocated South Memphis area that came as a result of the departure of the Army Depot.
Then following the minutes reading, legislative bodies should have a deliberation on what corrective action should be taken, while knowing EDGE combined entities have $27M in unrestricted taxpayer cash on their balance sheet, as of May 31, 2023.
It should also be considered, that the impoverished South Memphis area has been deprived of the use of cash assets from the 2011-12 sale of the South Memphis Depot property. On $9.2M, which will be tabulated from the below minutes, at 5% interest, that would add $5.4M in interest charges, for a total of $14.6M.
And finally, the following distribution from EDGE should be considered, $13.5M to the South Memphis area and $1M to the Taxpayer Justice Institute (TJI). The $1M to TJI would be used to construct the Memphis Museum of Public Debauchery, as a local community-wide civics instructional intervention to inform leadership development and rigorous oversight practice on behalf of taxpayers.
Additionally, there are South Memphis community members that have a desire to make a claim against the City and the County for $21M the City and County received for the sale of Depot real property assets. But the former is a separate and additional claim to the EDGE claim in this blog.
The EDGE/DRC minutes content, to be read into the record, is below with links to actual minutes.
EDGE/DRC MINUTES
Depot Meeting: March 21, 2012 – The next item of business was the request to approve a loan not to exceed $2.5 million to the Industrial Development Board of the City of Memphis and County of Shelby, TN (IDB), for the Paul R. Lowery Road Improvement Project in the Frank C. Pidgeon Industrial Park. President Reid Dulberger gave explained how the funds would be used. The Project is supported by a $3 million grant from the Delta Regional Authority (DRA), which will reimburse the IDB for approved expenses related to the construction project. Of the funds requested, $1.3 million will be used to make timely payments to contractors, with the monies reimbursed by the DRA within weeks. In addition, the IDB is required to deposit $1.2 million in an escrow account to insure the project achieves the job creation and investment targets specified in the grant agreement. The escrow account must be maintained for 3-years once the job and investment targets are achieved, meaning the escrow account will be in-place for 4-5 years. After a brief discussion by the Board, Jack Moore moved that the authorized loan be approved, which was seconded by Thomas Dyer. The authorized loan was approved on an affirmative vote of the following members: Al Bright, Jr., Thomas Dyer, Natasha Bowen, Jack Moore, Deidre Malone, Mark Halperin, Charles Goforth. Larry Jackson
Depot Meeting: January 16, 2013 – The next item of business to come before the Board was a request from the City of Memphis and Shelby County for EDGE to provide $100,000 in seed funding for the Air Service Task Force. President Dulberger reported that the Task Force is comprised of elected officials and community leaders from West Tennessee, Eastern Arkansas and Northern Mississippi and was recently created to help expand service and tower travel costs at Memphis International Airport, working in conjunction with the Memphis/Shelby County Airport Authority. The Task Force is an ad hoc group, not a legal entity, and EDGE was also asked to serve as the fiscal agent. The Task Force has an executive committee including Mayors Wharton and Luttrell, elected officials from Hernando and Tunica, MS; private sector representatives from International Paper, FedEx; Methodist, Baptist, and St. Jude Hospitals; and others. Seed funds from EDGE will be used to engage a consultant to evaluate options and develop an action plan, and for other purposes. Additional funds are expected from Task Force members. After discussion of the Air Service initiative, Jackson Moore moved for approval of EDGE to act as the fiscal agent and to provide $100,000 from the Depot account. The motion was seconded by Larry Jackson. The motion was approved on an affirmative vote of the following members: Al Bright, Jr., Natasha Donerson, Charlie Goforth, Jack Moore, Thomas Dyer, Larry Jackson, Mark Halperin, Johnny Moore (Cumulative: $100,000)
June 30, 2013 Depot Financials – (Summary) Without a recurring revenue model, like EDGE and The Port, and while undertaking the costs of maintaining Depot properties for sale, Depot shoulders $2,879,400 in real property disposal costs, while delivering $21M to the City and County and while loaning the Port money and putting EDGE in business. (Cumulative: $2,979,400)
Depot Board: July 15, 2015 – Based on the representations set forth in the Project and the recommendation of the staff of the Depot, the Depot hereby awards and agrees to provide to Regional Economic Development Plan (REDP) a $345,440 grant to assist GWI in the Project. (GMACW and Epicenter mentioned in full resolution. Unclear what “GWI” stands for).The motion was seconded by Johnny Moore and was approved on an affirmative vote of the following members: AI Bright, Tom Dyer, Natasha Donerson, Larry Jackson, Charlie Goforth, Mark Halperin, Deidre Malone, Johnny B. Moore (Cumulative: $3,324,800)
Depot Board: December 16, 2015 – Extension of Depot Redevelopment Corp. Loan to the Industrial Development Board Reid Dulberger commented that next item before the Board was the same item as in the previous IDB meeting except from the lender’s perspective. Staff requested the Depot to agree to extend the loan to the IDB for the $1.2 million until the funds are either released from Tri-State Bank or December 1, 2020, whichever comes first. The motion was seconded by Mark Halperin and was approved on an affirmative vote of the following members: Al Bright, Tom Dyer, Natasha Donerson, Charlie Goforth, Mark Halperin, Jack Moore. (Cumulative: $3,324,800)
*******DEPOT BOARD STOPS MEETING*******
At this point forward, EDGE is meeting and extracting funds, without convening the Depot Board and without public notice. These extractions, occurring without public notice, is likely illegal.
EDGE Board: June 20, 2018 – Based on the Service Agreement between EDGE and the Depot Redevelopment Corp., EDGE also approves the following DRC funding during FY2019: (1) a $900,000 grant to the Greater Memphis Alliance for a Competitive Workforce (GMACWorkforce) for operating expenses related to workforce development efforts;(2) $200,000 to help Improve rail service to Industrial customers on Presidents Island through a new intermediary service provider; and (3) $600,000 total in grants to the Arlington. Bartlett, Collierville, Germantown, Lakeland and Millington Chambers of Commerce for local economic development initiatives. A Committee created by the EDGE/DRC Chairman will allocate funds to the individual chambers and approve disbursement of all funds. FY 2018 proposed projects will be evaluated and funded during FY 2019, along with the FY 2019 projects. Tom Dyer moved the EDGE Fiscal Year 2019 Budget be approved as presented. The motion was seconded by Cary Vaughn. After Board discussion, the motion was approved on an affirmative vote of the following members: Dr. Florence Jones, Jack Moore, Johnny Moore, Cary Vaughn, Al Bright, Tom Dyer, Mark Halperin, Larry Jackson. (Cumulative: $5,024,800)
EDGE Board: June 19, 2019 – Based on the Service Agreement between EDGE and the Depot Redevelopment Corp,, EDGE approves die following DRC funding during FY 2019: (1) a $671,000 grant to the Greater Memphis Alliance for a Competitive Workforce (GMACWorkforce) for operating expenses related to workforce development efforts; (2) $300,000 total In grants to the Arlington, Bartlett, Collierville, Germantown, Lakeland and Millington Chambers of Commerce for local economic development Initiatives. A Committee created by the EDGE/DRC Chairman will allocate funds to the Individual chambers and approve disbursement of all funds. The motion was seconded by Larry Jackson. After Board discussion, the motion was approved on an affirmative vote of the following members: Jack Moore, Johnny B. Moore, Cary Vaughn, Tom Dyer, Larry Jackson, Mark Halperin, Dr. Florence Jones. (Cumulative: $5,995,800)
EDGE Board: June 17, 2020 – Based on the Service Agreement between EDGE and the Depot Redevelopment Corporation of Memphis and Shelby County, EDGE approves the following DRC funding during FY 2021: (1) a grant not to exceed $270,000 to the Greater Memphis Alliance for a Competitive Workforce (GMACWorkforce) for operating expenses related to workforce development efforts: and (2) $300,000 total in grants to the Arlington, Bartlett, Collierville, Germantown. Lakeland and Millington Chambers of Commerce for local economic development initiatives. A Committee created by the EDGE/DRC Chairman will allocate funds to the individual chambers and approve disbursement of all funds.
Based on the Service Agreement between EDGE and the Depot Redevelopment Corporation of Memphis and Shelby County, EDGE authorizes the Depot to forgive/write-off the $988,520.66 loan from the Depot to EDGE, which funded the demolition of the dock at the Public Terminal on Presidents Island. In addition, EDGE authorizes the amendment of the Promissory Note for the revolving line of credit extended by the Depot to the Industrial Development Board of Memphis and Shelby Co., extending the term to June 30, 2024. The motion was seconded by Larry Jackson. After Board discussion, the motion was approved on an affirmative roll call vote, with the following members voting “aye”: Al Bright, Dr. Florence Jones, Larry Jackson, Natasha Donnerson, Tom Dyer, Mark Halperin, Jack Moore, Johnny Moore, Cary Vaughn. (Cumulative: $7,554,321)
EDGE Board: June 16, 2021 – Based on service agreement between EDGE and the Depot Redevelopment Corporation (DRC) of Memphis and Shelby County, EDGE approves and the DRC agrees to, an FY 2022 DRC allocation of $320,000 in grants to the Arlington, Bartlett, Collierville, Germantown, Lakeland and Millington Chambers of Commerce: $300,000 for FY 2022 local economic development initiatives plus $20,000 for unspent FY 2021 economic development activities. A committee created by the EDGE/DRC Chairman will allocate the funds to the individual chambers and approve disbursement of funds.
Based on service agreement between EDGE and the Depot Redevelopment Corporation (DRC) of Memphis and Shelby County, EDGE approves and the DRC agrees to, an FY 2022 DRC allocation of $100,000 to the Greater Whitehaven Redevelopment Corporation to fund the Executive Director’s position.
Based on service agreement between EDGE and the Depot Redevelopment Corporation (DRC) of Memphis and Shelby County, EDGE approves and the DRC agrees, to write-off the promissory note for the revolving line of credit extended by the DRC to the Industrial Development Board of Memphis and Shelby County, Tennessee, on 4/30/2012 and extended on 6/17/2020, for the Paul R. Lowery Road project, with an outstanding balance of $1,200,000.
Based on service agreement between EDGE and the Industrial Development Board (IDB) of Memphis and Shelby County, Tennessee and the Depot Redevelopment Corporation (DRC) of Memphis and Shelby County, EDGE approves and the DRC agrees to, an FY 2021 allocation of $1,900,000 from the IDB and $100,000 from the DRC to fulfill the 2019 obligation to FedEx Logistics (see note 3 above). The motion was seconded by Natasha Donerson. After Board discussion, the motion was approved on an affirmative roll call vote, with the following members voting “aye“: Tom Dyer, Dr. Florence Jones, Gerre Currie, Natasha Donerson, Larry Jackson, Mark Halperin, Cary Vaughn (Cumulative: $9,254,321)
SOUTH MEMPHIS DEPOT BENEFICIARY DISINVESTMENT TOTALS
MEDIA REFERENCES
The Margin – “We Glow in the Dark” – The Margin is a national publication environmental justice publication out of New York.
Fox13 – Local news Depot report
Fox13 – Local news follow up on previous Depot report
Shelby County Commission Committee – Start at 5:50:20. The hearing is 40 minutes
Fox13 FedEx $2M Grant – On the EDGE $2M disbursement to FedEx, $1.3 came from the Depot, with $1.2M being funneled through the Industrial Development Board and $100,000 coming directly from the Depot.
JustMyMemphis – Pastor Leonard Dawson of Cane Creek Missionary Baptist Church speaks out about the absence of morality and accountability regarding direct public South Memphis disinvestment.
As of 8/1/23, the EDGE/DRC story has NOT been reported by the Daily Memphian, Commercial Appeal, Tri State Defender or MLK50. Nor has it been reported on Local24, WREG or WMC. Initial reporting, took 14 months to occur with The Margin, since the initial attempt to dissolve the Depot Board, in the midst of community opposition at the July 2021 EDGE meeting, and 19 months for it to occur on Fox13.