The city of Memphis plans to spend $3.2 million on home repairs, a paid community cleanup workforce program, environmental testing, and more for residents in the 38109 community.
The funds come from the Community Benefits Fund, which utilizes a portion of the tax revenue from AI properties in the city to help residents within a five-mile radius of the site.
Mayor Paul Young said the passage of the Community Benefits Ordinance could serve as a model for how other cities utilize the financial impact of data centers in local communities.
Under this ordinance, 25 percent of the tax revenue from FY26 will be used for residents within a five-mile radius of the xAI facility located at 3231 Paul R. Lowry road. The area was referred to as “Investment Zone 1.”
The plans for FY27 will include the Whitehaven location on Tulane Road.
Renee Sekander, deputy chief of staff and LGBTQ+ liaison to the mayor’s office, presented the city’s ideas during Tuesday’s meeting of the Memphis City Council’s Public Works, Solid Waste, and General Services committee.
The funds are meant to be spent on “public purposes” such as public buildings, facilities, and “general welfare” projects.
While the ordinance requires a minimum of 1 percent of the funds to be used for environmental education, Sekander said they are recommending “three times” that amount after speaking to community members.
This input was also collected through surveys conducted between July 2025 and May 2026 from 38109 residents. Top priorities included home repair and weatherization, public safety and crime prevention, road repairs and infrastructure, and blight remediation.
The funds are divided into two categories dealing with neighborhood cleanup and community needs. Clean-up efforts include activities such as addressing illegal dumping and debris removal, while community needs include home repairs and public safety initiatives
A total of $3,259,282 was collected during FY26. The biggest planned investment will be $1.4 million for a home-repair program.
“This is the single largest investment because it does the most for families,” Sekander said. “Eligible homeowners would be able to receive up to $30,000 for critical repairs like roofs, HVACs, accessibility modifications like ramps and grab bars, and weatherization.”
The second largest allocation will be $500,000 for a paid community cleanup workforce program. Residents will have paid opportunities to remove litter and participate in beautification efforts in Zone 1.
While the city plans to invest the majority of the funds in clean-up efforts, home repairs, and community-based initiatives, Councilwoman Jerri Green raised concern over investment in community health needs.
“We have $1.5 million for things I feel like we’re already supposed to be doing, but nothing going towards a very specific ask and concern of this community,” Green said. “
Young said their efforts in blight remediation is an extension of amplifying the city’s help in the impacted community, which he said many residents have requested. Young emphasized that incentives such as community-based workforce would be exclusive to 38109 residents.
Councilwoman Yolanda Cooper-Sutton, who served on the Advisory Board Related to Public Use Funds from AI Properties, said addressing residents’ health concerns should be a priority, and that the city is exploring “legal boundaries.”
Sekander said healthcare is factored into several of the proposals and may not appear as individual labeled line items.
“Home repairs is one of the things that is a big contributor to indoor air quality,” Sekander said. “When we are able to dedicate $1.4 million to our home repair programs, that also includes fixing the underlying issue for a lot of folks who do suffer from asthma.
One of our goals is to make sure we’re making long-term investments so that we can see this money grow and have tangible impacts long-term on community members.”
The proposed plans will appear in front of the council as a resolution to be voted on.
