Panel irons out Pyramid pact
Completed Bass Pro contract will be more favorable to city
By David Williams
Tuesday, February 12, 2008
Bass Pro Shops would be given a year -- not 18 months -- to commit to The Pyramid store project, according to new terms of a proposed development agreement.
"They've already agreed to slash that," Robert Lipscomb, city project manager for arena re-use, said of a six-month company extension the Missouri-based outdoors retailer had included in the proposed agreement it signed and submitted to the city and county.
The development agreement -- by which Bass Pro would pay $35,000 in monthly rent, but could walk away without penalty at any time -- has drawn wide criticism for its lack of binding terms. But Lipscomb and other project leaders say it's a "working document" that will be more favorable to Memphis and Shelby County by the time it's presented to the City Council on Feb. 19.
"The onus is on our side to strengthen the agreement to make the community feel that Bass Pro is committed," said former councilman Tom Marshall, an architect who is involved in the re-use process.
A contingent of local leaders pursuing the store project made its case to The Commercial Appeal's editorial board on Monday. Members of the group portrayed the outdoors retailer as the only viable alternative for the vacant arena -- and said they're convinced Bass Pro intends to follow through.
Marshall said company officials previously had major concerns about seismic issues, based on a preliminary engineering report.
But he said more thorough examination is allaying those concerns. "It's a doable deal," Marshall said.
Bass Pro officials have declined to talk about the development agreement, and, for now, aren't scheduled to attend Lipscomb's Feb. 19 session with the council or a Feb. 20 meeting with the County Commission.
But Bass Pro had strong backing from the group, which included Lipscomb and Marshall, as well as Scott Ledbetter, chairman of The Pyramid re-use committee that was created in 2004; Benny Lendermon, president of the Riverfront Development Corp.; and Bill Dance, prominent outdoorsman and close friend of Bass Pro founder Johnny Morris.
The group also questioned the financial wherewithal of Memphian Greg Ericson's group, and the long-term viability of his competing plan to turn The Pyramid into a theme park and also redevelop Mud Island River Park.
"To this point in time, it's all smoke and mirrors," Ledbetter said. "We have seen no demonstrated evidence that Ericson has the financial backing to fund his development."
Ericson, whose proposed binding development agreement was submitted Monday to the city and county, says he has $250 million in private funding.
County chief administrative officer Jim Huntzicker said last month that an "initial foray" into the Ericson group's finances showed there was a "reasonable expectation" the group could perform financially.
Lipscomb, director of the city's Housing and Community Development Division, acknowledged the county's initial positive response. But he said he's yet to see evidence of Ericson's financial wherewithal.
Ericson, however, said that both the city and county indicated they were satisfied with his group's financial capabilities, based on a Jan. 22 meeting attended by county officials including Huntzicker and city officials including Sheila Whalum, deputy director in the Finance Division.
"At the end of this meeting I personally asked Jim Huntzicker and Sheila Whalum if they had seen enough and if they were comfortable with our financial capabilities," Ericson said Monday. "Huntzicker responded, 'Yes I am satisfied.' Whalum responded, 'Yes.'"
Attempts to reach Whalum on Monday were unsuccessful.
Ericson also questioned why Lipscomb didn't attend that meeting: "Robert Lipscomb knew for over a month that we were bringing in our Pyramid Harbor financial partners from across the globe. I have no idea why he didn't come see their financial documentation for himself, but he did send four staff members who were all pleased with what they were shown."
The development agreement that Ericson submitted late Monday includes a $10 million termination fee his group would pay if it sought to end its lease. In his cover letter, Ericson bills his project as "the largest single tourism and entertainment development in the history of the City of Memphis..."
-- David Williams: 529-2310
Bass Pro development agreement
Changing terms: Bass Pro would have a yearlong development process before possibly committing to The Pyramid project. Originally, the retailer proposed having a year plus an option for a six-month extension. Other changes in the city and county's favor also are possible, project leaders say.
Approval process: The development agreement will be presented to City Council members on Feb. 19 and County Commissioners on Feb. 20.
Credit
Memphis Commercial Appeal