The Memphis City Council is set to decide next week whether to sign off on a $19 million mixed-use comeback for the historic Melrose High School building in Orange Mound, a plan that ties a neighborhood library to affordable senior housing and new townhomes nearby. The proposal leans on about $3 million in federal funding and a long-term ground lease to a private developer, and it has now moved from committee to the full council for a high-stakes vote.
According to WREG, the Housing and Community Development Committee sent the item to the full City Council with no recommendation. City documents cited at the meeting put the total development cost at roughly $19 million and describe a 50-year ground lease that would hand a developer control of the property for decades if the council signs off.
Historic Building And Library
The three-story Art Moderne school at 843 Dallas Street dates to 1938 and is listed on the National Register of Historic Places, according to local preservation records. Memphis Heritage highlights the building’s long history in the neighborhood, including its role as a community landmark for generations of Orange Mound residents.
The site’s ground floor reopened in spring 2024 as Orange Mound’s first public library and genealogy center, a milestone noted in coverage of the library’s opening and in local television reporting.
What The Project Would Build
Developers told the committee the full redevelopment would produce roughly 51 units: about 24 affordable senior apartments inside the former school and 27 townhomes on roughly one acre nearby. The deal would be structured as a 50-year ground lease, and officials said at the meeting that the project could rely on project-based vouchers from the Memphis Housing Authority to keep many units affordable. Supporters at the meeting suggested portions of the work could be finished and ready to lease by 2028.
During the discussion, Councilmember Yolanda Cooper-Sutton urged caution, saying the project “requires careful review and is not a rubber stamp,” while backers described it as a model of mixed-use public private partnership. WREG reported details of the exchange.
Funding And Affordability
The package relies on about $3 million in federal Community Project funding that Rep. Steve Cohen helped secure, local reporting shows. The city and developers say that public money would be paired with other grants, private financing, and tax-credit tools to reach the total development cost, while project-based vouchers would help lock in deeper affordability for the senior units.
As detailed by Action News 5, the federal appropriation was awarded in prior years to support the site’s redevelopment.
Next Steps
The full City Council will consider the ground-lease and financing package next week. If the deal is approved, developers would move into the final design, permitting, and construction phases. Supporters argue the reuse of Melrose could spark more investment in Orange Mound, while critics are pushing for firm oversight to protect affordability and ensure careful long-term stewardship under a lease that would stretch across generations.
