Work Begins On Radio Center Flats

     Construction is under way on Radio Center Flats, the rehab project planned for the former WDIA headquarters at 66 S. Main St. The project is a partnership between Greenhat Partners and Slovis & Associates.
     The partnership entity, named 66 South Main LP, filed a $3.1 million loan through Renasant Bank that will cover construction and a first permanent loan.
     Metro Construction LLC began work at the site Monday, said Greenhat principal Jason Wexler. When completed, the project will include 6,000 square feet of ground-floor commercial space, 10 apartments on two upper floors and secured basement parking.
     The rehab has qualified for a 15-year payment-in-lieu-of-taxes (PILOT) incentive through Memphis Center City Revenue Finance Corp., as well as federal Historic Preservation Tax Incentives, Wexler said.
     Greenhat and Slovis & Associates have teamed up on two previous apartment projects. The first is the 15-unit Cornerstone Apartments at 113 S. Main St., which has Wang's China Bistro as its ground-floor tenant. The other is the 33-unit Main Street Flats at 101 S. Main. Ground-floor commercial tenants include Main Street Dental and SEE Main Street vision practice.
     "We like doing the historic deals Downtown; we find it works well with the rental market that's going on. We like the historic tax credit incentives, and we just like doing those properties. (We have) vivid expertise in doing them at this point, and they've been successful for us," Wexler said.
     Besides formerly housing WDIA, Wexler said 66 S. Main was once home to the original Downtown Walgreens and WHRK radio station.
     Radio Center Flats will have one- and two-bedroom apartments that will range from 1,072 to 1,600 square feet. The flexible commercial floor plan can vary from 3,000- to 6,000-square-foot bays.
     Wexler said the commercial space is still open, but the partnership is in discussions with a potential tenant that would fill the entire ground floor.
     Work on Radio Center Flats is scheduled for completion in May. The building will be self-managed by Slovis Management, a subsidiary of the Greenhat Partners and Slovis &
     Associates partnership.

Pinnacle Reports Q2 Income of $7.7 Million

     Memphis-based Pinnacle Airlines Corp. on Tuesday reported second quarter net income of $7.7 million and fully diluted earnings per share (EPS) of $0.32.
     Net income was reduced by a non-operating loss of $4.1 million ($2.6 million net of income taxes) on the sale of the company's remaining claim against Northwest Airlines Inc., and by a provision related to Saab aircraft return conditions of $0.4 million ($0.3 million net of income taxes).
     Excluding these two nonrecurring items, net income was $10.6 million and EPS was $0.44. The company's net income and EPS were $13.6 million and $0.62, respectively, for Q2 2006, excluding nonrecurring items.
     The 2007 financial results reflect the contractual changes in the airline services agreement between the company's wholly owned subsidiary, Pinnacle Airlines Inc., and Northwest that became effective Jan. 1.
     Pinnacle Airlines Inc. operates as Northwest Airlink for Northwest Airlines.

Missing Cig Tax Projections Blamed on Stockpiling

     Tennessee officials blame stockpiling of tax stamps for missing projected cigarette tax collections by more than half in July.
     The state raised its cigarette tax from 20 cents to 62 cents beginning July 1.
     State Revenue Commissioner Reagan
     Farr said preliminary data show the state
     collected $8.5 million in cigarette taxes last month, about 53 percent below the projection of $18 million.
     Farr said tax stamp sales to cigarette wholesalers began to surge in March. From April through June last year, the state sold $29 million worth of cigarette tax stamps. This year the state sold $38 million worth of stamps over the same span.
     "We had a lot of people on the last day of June trying to buy multiple rolls of stamps," Farr said. "Interestingly, when we said we'd provide them on July 1, they didn't want to buy any at all."
     Some wholesalers complained that Farr's department blocked them from buying stamps before the tax hike went into effect.
     But Farr responded that state law gives him the discretion to stop "people just trying to make a quick buck."

State to Review Oversight Of For-Profit Colleges

     Representatives of some for-profit colleges
      in Tennessee have said they welcome the creation of a committee to study oversight of the schools.
     Wendell Moore, a consultant with the University of Phoenix, with campuses in Chattanooga, Memphis and Nashville, said he's pleased the General Assembly is taking a comprehensive approach instead of "piecemeal legislation."
     "Proprietary schools currently are put into a category with cosmetology or barber schools," he said. "With the growth of proprietary schools like the University of Phoenix that are accredited, there needs to be a different regulatory way of providing oversight."
     State Sen. Jamie Woodson, R-Knoxville, sponsored legislation in the Senate for the study committee. She said it's been decades since the state has taken a broad look at for-profit colleges, which are overseen by the Tennessee Higher Education Commission (THEC).
     "This would not be an additional layer of bureaucracy. It would just look at the current structure and see if we might be able to improve it," she said.
     Woodson said the committee will include lawmakers and representatives from for-profit colleges, the Tennessee Board of Regents, THEC and others.
     The group will meet before the end of the year and report its findings to the General Assembly in January.

Bennett Starts Altura Productions

     David Bennett, the former executive director of the Tennessee Film, Entertainment and Music Commission, has started his own film and television production company, Altura Productions.
     At Altura, which will be owned and managed by Bennett, the plan is to focus on film, TV and corporate video productions. Bennett said he eventually wants to make it a family affair, adding his wife - a former television producer - and daughter to Altura's ownership team.
     Bennett was appointed by Tennessee Gov. Phil Bredesen to lead the commission in 2003. Political events appeared to surround the end of his tenure, though, when Bennett said at the beginning of this year he was forced to resign by Bredesen.
     The governor, meanwhile, reportedly said Bennett submitted his resignation to spend more time with his family.