By Tom Bailey Jr. - The Commercial Appeal -

Wednesday, May 19, 2010 -

Signs of a rebounding economy marked a Center City board meeting this morning.

And one project sparked a discussion about what type of building is appropriate for the highly valued riverfront.

The Center City Development Corporation approved low-interest loans and a grant for construction or renovation projects.

Its directors also ended a recession-related program offering forgivable loans — grants, effectively — to existing Downtown businesses.

Center City offers 3 percent, fixed rate loans to applicants that qualify.

The board voted unanimously to provide a $200,000 loan to Memphis College Preparatory Elementary School, 278 Greenlaw in Uptown.

The new charter school plans to renovate the existing building there in time to welcome its first class of 90 kindergartners this fall. It plans to expand into a K-5 grade school, adding 60 students a year.

By Center City’s standards, the project qualified for only a $32,000 loan. But school director Michael Whaley requested and received an exception.

The Center City staff recommended approval of the exception, saying the project brings new amenities to Downtown that help attract and retain residents and workers.

The school’s motto is “The path to college begins in kindergarten.” It will hold class 7:30 a.m. to 4 p.m., with no nap time and an emphasis on making children proficient readers.

The board also approved a $77,000 loan to Greenbrier Partners, which plans to demolish the dilapidated building at 436 S. Front at Nettleton and build a mixed-use building of retail, apartments and parking.

The $2.5 million project comprises 30,000 square feet, with construction scheduled to start Aug. 10 and finish June 2011.

The work includes 25 apartments, 25 parking spaces in the basement, and 1,500 square feet of retail.

The $77,000 loan will be used for public improvements, including new sidewalks, street trees and lighting.

The project is a sign of a “thaw of the economic recession,” Center City president Jeff Sanford said. “All you have to do is look at what’s there now and what’s proposed. The project will greatly impact this corner location.”

An additional $5,000 would be loaned for exterior lighting if the plan is approved by the Design Review Board.

The board also approved a $20,000 commercial office grant for Carlisle Corp. to retrofit the former Joe’s Crab Shack at 263 Wagner.

The company, which develops real estate and owns 97 Wendy’s restaurants, plans to move its 37 employees there from Peabody Place Tower.

Until two years ago, developer Gene Carlisle planned to build a $186 million tower of hotel, condo and office space next to the site, using the former restaurant as a sales office for the project.

But the One Beale development stalled when financing dried up.

Company representatives have said they chose the riverfront site over moving to the Olive Branch airport area.

Board member Jennifer Hagerman questioned if using a riverfront tract for a 40-person office and parking fits with Center City’s strategic plans.

Center City senior vice president Andy Kitsinger responded that the project creates occupied office space and adds to density downtown, which is better than the Carlisle office moving from Downtown.

Without the project, the site would sit vacant for a long time, he said.

While the small office is “not to the level of the original concept (One Beale),” it’s an improved use of the site, Kitsinger said.

“I hate to see an office building go on the riverfront,” Hagerman said, but she joined other board members in unanimously approving the grant.

The board also voted to end, effective June 30, Center City’s forgivable loan program for existing businesses. Eight businesses took advantage of the loans, which were effectively grants for improvements to their enterprises.

A key reason for ending the program is the improving economy.

“The program helped to stabilize the businesses we have downtown,” Sanford said.

A similar program for new businesses will continue.