Piece of Grizzlies' funding moves forward - MLGW PILOT used to fund FedExForum construction extended to pay for renovations
On Wednesday, Aug. 19, the Memphis Light, Gas and Water Board of Commissioners approved amending and extending a 2001 agreement that sends $2.5 million from the utility annually to the City of Memphis. Since 2001, that money has paid the original debt for constructing FedExForum.
The amended agreement, attached to the MLGW board documents, states that the money may not be used to pay future debt. It also needs to clear the Memphis City Council.
“The funds from this PILOT payment shall be used exclusively for the maintenance and/or capital improvements of the facility located at 191 Beale Street Memphis, TN 38103,” the agreement says.
MLGW does not pay taxes. Instead, it pays a percentage of the value of its assets to the municipalities where its infrastructure is located, known as a payment-in-lieu-of-taxes.