Memphis Commission Approved Two Major Tax Abatements

Real estate developers secured multi-year tax incentives for residential projects in the Crosstown and downtown areas.

Updated on Oct. 13, 2026 in Construction

Memphis Commission Approved Two Major Tax Abatements

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Do you support providing long-term tax abatements to private residential developers in your community?

The Downtown Memphis Commission's Center City Revenue Finance Corp. recently approved tax abatements for two major residential developments. These incentives support a 10-year term for the Belle Mont project and a 20-year term for the Falls Building redevelopment.

Why it matters

Tax abatements like these are essential tools for developers to offset construction costs and improve project viability in urban corridors. Local operators should monitor these incentives as indicators of where municipal support is concentrated for incoming residential density.

The board approved a 10-year payment-in-lieu-of-taxes for the Belle Mont second phase and a 20-year abatement for the 11-story Falls Building. These projects represent ongoing development efforts in the city's residential real estate sector.

The players

Downtown Memphis Commission

An organization focused on economic development and property management within the city core.

KPS Development

The real estate firm responsible for the three-phase Belle Mont residential project.

The details

The tax incentives function as a reduction in property tax liabilities over the specified terms, facilitating the completion of the three-phase Belle Mont project near North Montgomery Street and North Bellevue Boulevard. Simultaneously, the 11-story Falls Building at 22 N. Front St. will undergo residential conversion with the support of its 20-year abatement.

October 13, 2026: The Center City Revenue Finance Corp. approved the two tax abatements.

Market Landscape

This action follows the standard industry pattern of using payment-in-lieu-of-taxes programs to incentivize residential density in urban areas. Such measures are frequently deployed to bridge the feasibility gap for complex redevelopment projects in established city corridors.

Local developers and property owners should analyze these approved abatements to understand the current threshold for municipal project support. If you are pursuing similar renovations, consider how long-term tax deferrals impact your projected internal rate of return.

The takeaway

Tax incentives represent significant operating variables that can determine whether urban redevelopment projects reach profitability. Monitor future board meeting agendas for the Downtown Memphis Commission to track which specific geographic zones are receiving priority for public-private capital investment.