Bass Pro hangs on to Memphis Pyramid

On Jan. 31, Springfield-based Bass Pro officials submitted a long-awaited development agreement to build a megastore in Memphis, Tenn.’s vacant Pyramid arena. The development agreement was signed by company President Jim Hagale and must be approved by officials with the city of Memphis and Shelby County, co-owners of The Pyramid.

The agreement was submitted hours before the retailer’s third letter of intent was set to expire. Bass Pro officials announced ambitious plans for The Pyramid in February 2006. Since then, the process has been delayed twice, and some people involved with The Pyramid say the new development agreement is simply Bass Pro’s latest attempt at postponing a commitment.

“I think everyone is concerned with the ongoing delays,” said Memphis Councilman Myron Lowery, who was among about 15 officials who toured Bass Pro’s Campbell Avenue flagship store the day before Bass Pro filed the agreement. “It’s time to make something happen.”

While visiting the headquarters and Bass Pro-owned Big Cedar Lodge near Branson, Lowery and others were supposed to meet with Bass Pro founder Johnny Morris and President Hagale. When Morris and Hagale were no-shows, Lowery said he wasn’t disappointed.

“It was extremely useful in terms of seeing the operation,” Lowery said. “The store is simply fantastic. Given the statistics regarding the number of people that come to visit every year, I think it’s tremendous. I think that a superstore in Memphis like this would be extremely useful and good, and I was impressed.”

Two years ago, Bass Pro proposed to rent the downtown Memphis Pyramid for up to $1 million a year and invest another $75 million to $100 million in renovations. At that time, Bass Pro was breaking from its practice of seeking city or state redevelopment incentives.

Plans called for a hotel, restaurant, aquarium, museum, education center and marina.

City and county officials are eager to find another use for the 32-story, stainless steel Pyramid, considering its reported $13.5 million debt service and $600,000 annual operating costs are draining government coffers.

Built in 1991, The Pyramid had drawn major concerts, and the Memphis Grizzlies professional basketball team played there 2001–04, before moving into the FedExForum.

In the 20-page nonbinding development agreement obtained by Springfield Business Journal, Bass Pro offers to cover The Pyramid’s operating costs up to $35,000 a month for a year, capped at $420,000.

The development period would allow Bass Pro to continue its due diligence process, which it’s been conducting for more than two years. The retailer could sever ties with written notice at any time, according to the document, and Bass Pro would stop paying rent during the construction phase.

Bass Pro also asks for more of a financial commitment from Memphis and Shelby County, citing higher than anticipated redevelopment costs. The retailer seeks $30 million in government assistance to go with its $75 million investment.

“It looks like a fourth letter of intent with a different name on the top of it,” said competing developer Greg Ericson. “It’s not a commitment to do anything.”

Ericson, president and CEO of Memphis marketing firm Ericson Group, is vying to lease The Pyramid from Memphis and Shelby County. His plans call for converting The Pyramid and surrounding area into a $300 million Pyramid Harbor theme park with hotels and retail elements.

City Councilman Lowery said he’d like to see Bass Pro and Ericson coexist at The Pyramid. Ericson said he expressed an interest in partnering with Bass Pro officials in 2006, but talks haven’t progressed since then.

Bass Pro spokesman Larry Whiteley declined to comment on the Memphis project, only saying that the company remains excited and committed.

The development agreement calls for exclusive rights for Bass Pro during the development period, which could be extended to 18 months at Bass Pro’s discretion.

Memphis City Council is scheduled to hear the proposal Feb. 19, and the Shelby County Commission will be briefed shortly thereafter.

Votes on the proposal could come a couple weeks after that.