Federal Historic Tax Credits

$11.9 Million

New Markets Tax Credits

$12.5 Million

Total Project Cost

$58.9 Million

Project Partner

Community Collaboration

Impact

Affordable Housing, Job Creation, and more

History

American Snuff Company

The history of the American Snuff Company can be traced back to 1782 with the founding of Garrett Scotch Snuff, one of the earliest producers of the smokeless tobacco product in the country and one of the first 10 patents to be issued in America. In 1900, Garrett Scotch merged with several major tobacco empires of the time, to form the first iteration of the American Snuff Company. This merger, however, created a monopoly on tobacco products and was divided into three separate companies in 1907.

The new American Snuff Company, under the management of Martin J. Condon Sr., a former Mayor of Knoxville, constructed the Memphis warehouse in 1912 to house the production, packaging, and distribution of their snuff products. Condon chose the Memphis location due to its proximity to a high-quality dark-fired tobacco farming region known as the ‘Black Patch,’ as well as its central location and well-connected rail hub.

The American Snuff Company prospered under Condon’s direction through the 1930s. The Wall Street Journal called the American Snuff Company “depression proof,” after a decision to broaden product lines to include sweet-flavored snuff resulted in higher sales than the company’s pre-depression years. During this period the Memphis plant was featured heavily in the company’s advertising campaigns as well as those for the city of Memphis.

During the 1940s and 1950s, women comprised a majority of the American Snuff staff, many of which were members of the growing labor union movements of the time, such as the Congress of Industrial Organizations. The Memphis warehouse was the site of a major union strike in 1950 when 324 workers staged a 185-day strike in demand of better pay and working conditions. The walkout and strike resulted in workers getting a $.05 raise, dues check-offs from paychecks, and a new recreation room in the warehouse.

By 1955, the American Snuff Company was the second largest snuff manufacturer in the US employing 500 at the Memphis plant. Condon was eventually succeeded by James E. Harwood, a long-time employee of the Nashville factory. In 1965, the firm’s name was changed to Conwood Corp., a combination of his and the former president’s last name. Reynolds American acquired the Conwood Corp in mid-2006 for $3.5 billion in cash. It now generates nearly 7% of Reynolds American’s annual revenue. They used the Keel Avenue facility until 2012 when they sold the property.

Community Impact

Revitalizing Memphis

The revitalization of the Uptown community has been a focus of the City of Memphis since 2000 when the first HOPE VI grants were awarded to several projects located only a few blocks from the warehouse. However, due in part to the economic recession in the late 2000s, the community remains severely distressed and underinvested.

In 2018, the city engaged stakeholders to help create the Memphis Uptown Community Plan, with goals that included creating neighborhoods with a mix of incomes and ages, protecting affordability for long-term residents, and promoting the development of vibrant community anchors. The American Snuff Factory is identified as a key catalyst for these plans, through its creation of mixed-income housing and by providing commercial space that is compatible with the surrounding neighborhood and offers employment opportunities for area residents. The revitalization of the historic warehouse will

create anestimated 148 construction jobs, all of which will pay a living wage or higher. Many of these positions will be union eligible, readily available to people who face job barriers, and will be open to members of the surrounding community. A minimum of 25% of the construction contracts will be awarded to minority- and women-owned business enterprises.

NTCIC’s New Markets Tax Credit (NMTC) investment will allow the revitalized residential space to include at least 31 units that will be income and rent-restricted to community members earning 80% or below the area median income. It will also support reduced rental rates for the Varsity Spirit, which in turn will enable them to add 50 additional jobs and provide additional training opportunities for new and existing employees.

Construction Jobs

148 construction jobs

Affordable Housing

31+ units of affordable housing

Job Creation

55+ jobs created

Neighborhood Impact

With input from the community

NTCIC & Progress

Project Financing

The $58.8 million project was made possible in part by $12.5 million in NMTC allocation provided by NTCIC, as well as an investment from NTCIC’s Community Impact and Revitalization Fund to support the $10.8 million in federal Historic Tax Credits (HTC) generated by the project. Additional project financing also included over $8.8 million in Opportunity Zone fund equity.

NTCIC’s CIRF fund directly invests in the adaptive reuse of historic properties across a wide range of asset classes, including mixed-use/mixed-income housing, hospitality, community facility, and commercial developments that create jobs, provide needed community services, and revitalize our nation’s historic assets.

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Historic Tax Credits

$12.5 Million
Federal HTCs

New Markets Tax Credits

$9 Million

Total Project Cost

$73.3 Million

Project Partner

Tivoli Theatre Foundation

Impact

Arts Education, Support, & Access

History

The Jewel of the South

Chattanooga’s Tivoli Theatre, “the Jewel of the South,” opened its doors to the public in 1921 as a state-of-the-art performance space. Built as a smaller-scale replica of Chicago’s Tivoli Theatre, this 1,750-seat entertainment hall was the first public building in the south, and one of the first in the country, to install an air conditioning system. After decades of success, the theatre’s performance steadily declined through the 1950s as more modern movie theatres started to open in the city. The city took control of the building in early 1961 and reopened the space in 1963 as Chattanooga’s new Cultural Center.

The transformation into a Cultural Center was hailed as the beginning of revitalization in Chattanooga’s downtown area and the space was listed on the National Register of Historic Places in 1973. In 2015, the city of Chattanooga created the nonprofit Tivoli Theatre Foundation to operate the venue and to lead fundraising efforts to repair the building. The theatre was closed in 2022 to begin the full restoration.

The Trigg-Smartt building adjacent to the Tivoli Theatre was built in 1889 as a commercial space. The building was named after the original tenants, Trigg Dobbs & Company, a wholesale grocer, and Smartt Brothers & Company, a wholesale shoes and boots company. Trigg-Smartt was owned and operated by these two companies until 1911 when James Trigg sold his portion of the building to James Smartt and vacated the building. Smartt Brothers & Company continued to operate in the building until the death of Smartt in 1913. After his death, the business vacated the building and welcomed a variety of commercial tenants through the years. One of those tenants included the Fowler Brothers Furniture Company, the largest furniture company in Tennessee, which occupied the building until 1985. The Trigg-Smartt building was listed on the National Register of Historic Places in 1986.

The Second Act
Revitalization Efforts

The Second Act

The restoration will unite two historic downtown buildings into a modern performing arts center, featuring an upgraded main theater, a new cinema and studio, expanded public spaces, and a refreshed marquee. The redesigned complex will offer enhanced amenities such as a larger lobby, dining options, multiple bar areas, and improved building systems. Alongside the physical transformation, the Tivoli Theatre Foundation plans to deepen its collaborations with local arts organizations and schools, creating new programming, summer camps, and more.

Community Impact

Culture & Community

The Tivoli Theatre will continue to function as a hub of culture and community by expanding access to the arts for Chattanooga’s residents and providing educational opportunities for students and teachers alike. Financing provided by NTCIC will enable the theatre to provide reduced-cost tickets and programming for low-income children and families. Once renovations are complete, the new and enhanced venue will provide more space and accommodation to expand partnerships with other area arts organizations and schools. The Tivoli Theatre will provide larger space for the Chattanooga

Symphony & Opera Young People’s Concert program, which pairs orchestras with students in grades 3–5 to explore orchestral repertoire and fundamental musical skills, including creative work and composition, through a hands-on music curriculum. The larger theatre space will host more performances by the Chattanooga Ballet and Chattanooga Boys Choir and expand the touring children’s theatre program. Once complete, these partnerships will support more than 25,000 additional students each year.

Expanded Partnerships

With area arts organizations and schools

Affordable Arts

Reduced-cost tickets for low-income children and families

Musical Mentorship

Pairs orchestras with local students

25,000 Additional Students Annually

Will benefit from expanded partnerships

NTCIC & Progress

Project Financing

The $73 million revitalization was supported, in part, by NTCIC through an equity investment in the $12.5 million federal Historic Tax Credits generated by the project. NTCIC also provided $9 million in New Markets Tax Credit allocation, which helped lower the capital campaign burden, covered additional financing gaps, and ensured expanded access to shows and programming for low-income individuals.

In addition to the tax credit financing provided by NTCIC, the project will be funded by a $20+ million capital campaign by the foundation

and nearly $12 million in PACE financing dedicated to energy-efficient upgrades.

The Tivoli Theatre has historically played a significant role in downtown Chattanooga’s economic and community development. Once renovated, the expanded venue will host over 100 events annually between the restored Tivoli Theatre and the new Bobby Stone Theatre, representing an annual increase of over 32,000 patrons and a nearly 60% increase in revenue within five years of the project’s reopening.

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