Memphis-based custodial service business looks to add 260 jobs with new Midtown expansion
A Memphis-based custodial company is seeking a 10-year Fast Track payment-in-lieu-of-taxes (PILOT) with the Economic Development Growth Engine for Memphis and Shelby County (EDGE).
Fresh Start Facility Services plans to expand its operations with a new facility at 296 East St. in Midtown. The expansion would bring 260 new jobs with an average salary of $37,347, according to the PILOT application.
The total investment from Fresh Start will be $2.9 million. Those funds will be split between $1,080,000 in renovation for the East Street facility. An additional $1.96 million will be used for property investment including equipment purchasing and relocation.
The 0.399-acre lot at 296 East St. was previously owned by the Gillian Family Trust. IBB Holdings GP purchased the property in November 2022 for $245,000, according to the Shelby County Register of Deeds.
Fresh Start was founded by Johnny Fayne. Fayne, who previously worked as an international freight operations manager at FedEx, launched the company in 2009. The company has expanded into six states throughout the Mid-South and specializes in post-construction and emergency cleanup services, according to staff reports.
Of the 260 jobs, 121 of them will be custodial positions. Sixteen positions will be supervisors or area manager roles with an average salary range between $66,283 to $78,580. An additional 120 jobs will be for lead and floor tech positions, according to the PILOT application.
According to staff reports, the current property at East Street is generating $3,062 annually in property tax revenue. If the PILOT is approved, the pending investment would generate $11,924 annually in property taxes with an estimated $104,940 generated during the 10-year PILOT. The facility is expected to generate more than $10.56 million in tax revenue via business operations.
The Fast Track PILOT application will be discussed at the upcoming EDGE board meeting on Wednesday, Nov. 15.
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Two Downtown Memphis businesses seek ICED loans
Two small businesses are seeking Inner City Economic Development grants with EDGE.
Upscale Kutz, a barbershop and salon in the Medical District, is seeking a $24,334 ICED loan to assist in a $36,500 renovation at 1333 Madison Ave.
Upscale Kutz opened in 2018. The interior renovations are expected to be complete within 60 to 90 days, according to the application.
In addition, Groovy Gratitude is seeking a $25,000 ICED loan.
The health-conscious smoothie and sandwich restaurant, Groovy Gratitude, is opening at 605 N. Second St. near the Malone Park Commons. Groovy Gratitude will be the second commercial tenant at Malone Park. Muggin Coffee opened its second location at Malone Park Commons in September.
The ICED loan will be used toward tenant improvements at the 700-square-foot property. The total remaining cost of construction for Groovy Gratitude is $93,500, according to the grant application.
Groovy Gratitude plans to open in early 2024.
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The 0.68-acre Malone Park Commons is a 35-unit neighborhood consisting of duplexes, fourplexes and townhomes. The infill development is aimed at repairing “missing middle” housing in Memphis and is located between North Main Street, Saffarans Avenue, North Second Street and Greenlaw Avenue.
Both Groovy Gratitude and Muggin Coffeehouse are part of the development’s second phase, which included two live/work/play buildings located along North Main Street and North Second Street, respectively.
Neil Strebig is a journalist with The Commercial Appeal. He can be reached at neil.strebig@commercialappeal.com, 901-426-0679 or via X/Twitter, @neilStrebig
This article originally appeared on Memphis Commercial Appeal: Fresh Start Facility Services aims to add 260 new jobs in Memphis
