Pinch infrastructure targeted to aid St. Jude expansion

Gov. Bill Haslam, Memphis Mayor Jim Strickland and Shelby County Mayor Mark Luttrell gathered on the St. Jude Children's Research Hospital campus on Thursday to highlight infrastructure spending planned to support the research hospital's expansion plans.

The funding -- $12 million approved last spring in the state budget, $25 million the city plans to collect from a tourism development zone and an undetermined amount the county plans to approve from a tax increment financing district -- is to improve the Pinch district infrastructure.

"All city, state and county money is going to be spent on infrastructure in the Pinch district, outside the gates of St. Jude," Rick Shadyac, chief executive officer of ALSAC told those gathered in the Domino's Event Center.

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St. Jude and ALSAC, the fundraising and awareness organization for the 5,000-employee research center, are in the second year of a six-year strategic plan for expansion of patients served, facilities, research and global reach.

"Our expansion includes close to $1.3 billion in new capital investment and an additional $1.7 billion in additional operational spend over the life of the six-year plan, which began in 2016," Shadyac said. "This is a total of $3 billion in additional strategic investment right here in Memphis, Tennessee."

The plan creates 1,800 jobs and improving the Pinch, providing room for St. Jude to expand west, is part of the plan.

"This partnership, this investment, in the area around St. Jude will have a direct effect on our ability to really recruit the best and brightest minds from around the world to join this great city, to join the individuals who are on the St. Jude campus...," said Dr. James R. Downing, chief executive officer of St. Jude.

"Our message to everyone is that we want the Pinch district to be a place where people want to live, work and play, so it has to be pedestrian friendly," Shadyac said.

Haslam, following the program, said the state considers St. Jude to be a long-term partner and provides other support, such as help recruiting physicians  through the University of Tennessee Health Science Center.

"We have a long-term commitment to St. Jude making certain this works and likewise they are making a long-term commitment as well," the governor said.

Strickland said the city's support won't come from the general fund and represents an important investment in public infrastructure, or core services, "especially in this area that has so much potential, so much promise."

"This partnership is exactly what we intend to do, reinvest in the foundation of our city to allow the momentum in Memphis to multiply," he said.

Following the program, Luttrell said the county plans to approve an undetermined amount of tax increment financing for infrastructure improvements. This would direct new property tax revenue over the current amount to pay for the improvements.

Shadyac said St. Jude isn't ready to offer specifics, but  gave some clues about its designs for the Pinch. He said ALSAC already has an office building and call center in the Pinch, and that St. Jude has an office building and garden there as well.

There is a "really good chance our next patient housing facility could go in the Pinch," he said.

The Pinch is a worn 19th Century commercial district on the riverfront next to Bass Pro Shops at The Pyramid. Relocating an old sewer line in the Pinch is a project that must be done early in the process, he said. Beautifying the area, improving sidewalks and installing underground utilities are others.

"It's softening Third Street, if the city and county agree. That's a major thoroughfare with four lanes in it right now and we want to make sure that that's pedestrian friendly," Shadyac said.

"We're hoping that Main Street literally gets extended so that Main Street becomes the kind of vibrant area that it once was when the Tigers and the Grizzlies were in the Pyramid," he said.

Like the governor, Shadyac said the  infrastructure funding spurred by the St. Jude expansion represents something longer-term.

"I'm optimistic and hopeful that this is the beginning of the partnership," Shadyac said.