It's a matter of fairness

May 16, 2007
Residential redevelopment projects serve an important public interest in Memphis, maximizing the efficient use of existing infrastructure and re-energizing deteriorating neighborhoods.

The benefits of developments like Uptown, which is gradually replacing blighted areas near The Pyramid, are well-documented.

In other words, the project meets the criteria established by the U.S. Supreme Court decision in Kelo vs. City of New London and provisions of Tennessee law that justify the use of eminent domain to acquire property.

The Kelo decision in 2005 gave states the right to decide when eminent domain is necessary, even if that includes taking property for economic development purposes.

A Tennessee law passed subsequent to Kelo placed some new restrictions on the use of eminent domain, but nothing that would prohibit the government from seizing the small Looney Street lot purchased by former Memphis City Councilman Fred Davis in 1989.

If Davis follows through with his plan to develop the property, especially if it is done in a way that meshes with the Uptown project, no one should stand in his way.

There should, however, be a limit to how long city government can wait for that to happen.

As a marketable Uptown continues to spring from the blight, the transition can be gradual, but it must be orderly.

Uptown is not being developed to generate more tax revenue for Memphis. Its value is in attractive and affordable housing that could keep people from leaving Memphis and perhaps even bring a few emigrants back.

Its location near Downtown, Mud Island, The Pyramid and St. Jude Children's Research Hospital also gives the project an important role to play in the cultural and economic life of the city.

It would be a shame to see vacant lots in the center of an otherwise revitalized area.

But as important as it is, no one wants to see property owners sustain crippling economic losses as a result of a project like Uptown.

Davis, owner of Fred Davis Insurance Agency, paid $53,000 for the quarter-acre lot with the intention of developing it. It's now appraised at $16,200.

Eventually, the Memphis Housing Authority and the Division of Housing and Community Development may have to resort to eminent domain to obtain the tract.

In any case, the owner deserves fair market value.

In Davis' case, that would seem to be a lot more than its current appraisal, perhaps even more than the $53,000 he paid for it as an investment.

If he and other property owners like him are treated fairly, there is every reason for progress in Uptown to continue.

Three Cheers for Frayser

$60 million residential development launches in tandem with revitalization efforts

A $60 million residential development on about 115 acres on the north side of James Road near North McLean Boulevard soon will change the face of the blighted Frayser community.

Frayser is perennially beleaguered by high foreclosure rates, low property values and crime.

Longtime resident Betty Hunt said she's glad to hear that steps are being taken to turn things around, but she's still afraid to venture into certain neighborhoods.

"There are some streets that I'm just really afraid to drive down," she said.

The James Road development will be the first the Frayser area has seen in almost five years. The last to be built in Frayser was the Victoria Park subdivision near Debby Street and Whitney Avenue, which has fewer than 20 homes.

To the rescue

United Housing Inc. (UHI) is spearheading the new project.

UHI is a local nonprofit organization that works to support the revitalization of neighborhoods across West Tennessee by providing homebuyer and financial literacy education, affordable loan products and construction services for low- to moderate-income families.

The project is part of a continuing effort to revitalize and re-invigorate the community of about 45,000 people.

"The subdivision process already has been completed through the (Shelby County) Office of Planning and Development (OPD) and the funding for the middle-income housing program has already been approved by the city as well," said Tim Bolding, UHI's executive director.

Rocking and rolling

The project will be completed in seven phases, with the first expected to be under way in the very near future, although no timetable has been set. The subdivision will be called Wolf River Bluffs.

Its first 34 lots are slated for completion by July 1, 2008. The entire subdivision will take about seven years to build, Bolding said.

The site plan for Wolf River Bluffs calls for 320 single-family detached lots, with lot sizes ranging from 5,291 square feet to more than 2.5 acres, according to the residential plan submitted to the OPD.

No builders have been named yet. Bolden said UHI officials are working to finalize a private financing deal before taking the next step.

The Wolf River Bluffs site plan also calls for three common open spaces.

"Once we get everything rocking and rolling, we ought to be able to get that done within 12 months," Bolding said.

Good omens

The Memphis City Council approved the project last year. Designating it as a middle-income housing project means the subdivision's home costs will range from $150,000 to $200,000.

The UHI board of directors has approved Renassant Bank to serve as the project's lending partner.

City officials have said this type of housing is needed in Frayser for its stabilizing effect on the surrounding community and to prevent further decline.

The community has for years distinguished itself negatively by having the highest number of foreclosures than any other part of the city.

Frayser had 477 foreclosures in 2005, the latest year for which information was available, according to data compiled by the Frayser Community Development Corp. That's the highest number of foreclosures for one area in Memphis for that year.

Steve Lockwood, FCDC executive director, said he believes the 2006 foreclosure rate for the community mirrored 2005.

But FCDC, like UHI, has been working to change the image of the community. FCDC recently opened a resource center at 3684 N. Watkins St. FCDC staff will be working to educate potential homebuyers about bad borrowing and lending practices, as well as making affordable housing available.

FCDC buys foreclosed homes from the U.S. Department of Housing and Urban Development (HUD) and resells them, making sure buyers get a good, sound loan they can repay.

A number of other resources will be offered to Frayser residents, all intended to help breathe life back into the area.

Lockwood said he is thrilled at the prospect of having the new subdivision added to the community. But he doesn't want to stop there. He said he would like to see all the major developers in the city, such as Boyle Investment Co. and Henry Turley Co., investing in the area.

Cautious optimism

Hunt, who works at Skylake Food Market Deli & Grocery on North Hollywood Street, said despite the problems Frayser has faced in the past, she can foresee the new residential development having a positive effect on the neighborhood.

"I can see where it'll be a good project," said Hunt, who has been robbed at gunpoint in the past. "Because there are a lot of people out here who want to own their own homes."

Bolding said he's excited about the chance to bring something positive to Frayser.

"We want to really do a project here that's a real plus for the neighborhood and that really adds quality to Frayser," he said. "We know there's a lot of folks in Frayser that really love that neighborhood and want to stay there and we're looking forward to building some houses that are probably a step up maybe from some of the ones that are there."

While Hunt expressed happiness about the new development, she pointed out that it will take more than that to turn the area around.

She said people need to be realistic and acknowledge that it's going to take more than a lot of new homes to change the landscape of the community.

"There also needs to be more police presence out here," she said. "And also more jobs. Because when people have jobs, they're not out doing things they shouldn't be doing."