Jackson Free Press

Performa Entertainment Real Estate Inc., the developer that turned the Beale Street District of Memphis into a jazzy powerhouse of capitalism, is likely to buy property along Farish Street with the intent to build apartments.

"Building market-rate apartments was our plan for the entertainment district in the early stages, so we're OK with this purchase," said Performa Senior Vice President of Development Cato Walker.

Despite Performa's willingness to jump into the residential development aspects of the Farish Street Entertainment District, Performa's hand was forced, according to former Jackson Mayor Harvey Johnson Jr.

Johnson said Performa was obliged to take on the apartments because Mississippi Development Authority (MDA) Executive Director Leland Speed made the apartment construction a requirement.

"I think Performa would back away from any (admission of forced development influence), but Leland Speed wanted those apartments, and the MDA has say-so over that $6 million loan," Johnson said.

Walker later confirmed that the company had to build those particular apartments in order to get state-backed loans for construction of the more dynamic businesses slated for the district. State money is key to the project's success, which has been stymied for months by daunting construction cost estimates.

"We've got precious little (development) in downtown Jackson," Speed said, "but if we're going to have the entertainment (district) be a success, and not just put up the taxpayers' money and cross our fingers and hope, we've got to do everything in our power to make sure the dad-gum thing works. What can really make that thing work is to have quality housing right around there."

Speed said he predicted huge development in the upcoming year. "I will be disappointed if this time next year there isn't a minimum of 10 projects going on in downtown Jackson," he said.

Mississippi College School of Law Dean Jim Rosenblatt denied that he and Speed had intentionally orchestrated the apartment development—and the subsequent delay—for a campus housing project.

"I'm certain in their planning they're looking at the traffic generated by the law school, and being able to offer some alternative housing to our students here. But as for whether they have specifically set aside any for that, I have no idea," Rosenblatt said.

It's clear that delays are getting on the nerves of residents and business owners. Last year, Performa predicted that several businesses would be under construction by this month, but problems arose with financial backing and the demands of historic renovation. Revised renovation estimates, each more expensive than the last, also snarled progress, as did higher-than-anticipated city estimates of asbestos contamination in some of the buildings.

Local businesses like Stamps Superburger and the Subway Lounge are also slated to relocate to Farish, but Subway Lounge may not make it because of all the delays. Cato said he would work to reverse feelings of discouragement from the delay in the upcoming weeks.

Performa can overcome one financial hurdle put up by the MDA by owning and building apartments on the land the Jackson Redevelopment Authority is putting up for sale, and city officials say they plan to put in a bid for the land with the expectation of a purchase by Performa. Other developers could bid on the same property, but will stand to make less money for their efforts in the long run because Performa already holds the lease to that land and the surrounding property.

Performa head John Elkington told the JFP that the residential development his company plans for the area is aimed for middle to high income, but Walker said there are no state or city requirements for Performa to build a certain amount of low-income hosing in the district to prevent gentrification.

Mississippi NAACP President Derrick Johnson said care should be taken to ensure developers do not displace the area's current residents—some of whom are very low income—with higher rent residences.

"There needs to be real discussion on how development will go to ensure that gentrification doesn't take place," Johnson said. "It's still early in the process, and this is the time to make sure that residents who already live in the area are included in planning, and that those groups are fully able to reside in that community while it grows."