Making Revitalization Happen

As the oldest Black neighborhood in North Memphis, the Klondike community has a long and proud history dating to its founding in 1899. The neighborhood was one of few places that Black residents could own homes, attracting professionals. Major companies set up shop in Klondike in the early 1900s, generating economic growth for its residents.

However, over the decades these companies left the area, and today Klondike has a 41% poverty rate, significantly more than the 24% rate in the Memphis area and almost triple the national rate of 11.6%. The neighborhood has further suffered from urban and suburban sprawl, with Klondike’s population declining 20% between 2010 and 2022.

Today, the planned development of a closed high school and surrounding land into commercial and residential properties is expected to revitalize Klondike and restore it to its former vibrancy as a center of Black life in Memphis..
The project is spearheaded by The Works, a longtime Memphis organization that rebuilds and restores communities by developing affordable housing, delivering related programs and services, and supporting residents’ well-being and economic success. After Shelby County transferred 150 vacant properties to a consortium including The Works for revitalization and restoration, The Works purchased the 264,000-square foot Northside High School building from the county school system for $400,000. The school will become Northside Square, housing a range of organizations and entities that were chosen based on residents’ input.

HOPE is providing Northside Square with $7 million in New Market Tax Credits, federal tax credits provided to investors in exchange for making equity investments in community development entities like HOPE to fund businesses and facilities in under resourced communities. Additionally, HOPE is providing $4.26 million in loan financing with favorable pricing and terms to the project.

Roshun Austin, president and CEO of The Works, said she often struggles to find financing even for smaller projects. “HOPE is squarely in the space of betting on neighborhoods that others are not willing to bid on and say they’re worth the investment,” she said. “I’m not real easy on financial institutions because I think they continue the historical practices that have ravaged neighborhoods and cities. And so for HOPE to say something different by making these investments in places where others will not means the world
to me.”

Northside Square will house a free Shelby County Schools program where residents 18 and older can earn their high school diploma; a vocational school to equip adults with the knowledge and skills for a range of career options; a literacy organization with programs for adults and children; a permanent rehearsal space for The Memphis Symphony Orchestra, which performs throughout the community and teaches students of all ages; Muggin Coffeehouse, a Black-owned business with two other locations in Memphis; a food hall; and a coding and computer science program to develop skills among underrepresented students. The space will also house a health clinic, fitness center and gym with recreational programming, the University of Memphis Law Project, a human services support organization, and an organization that supports survivors of human trafficking. The Works’ Mobile Market will stop twice weekly at Northside. And the building will include 43 affordable housing rentals, which, with the development of the adjacent properties, is expected to support the neighborhood’s population growth.

The building is expected to open in September 2025. “This is going to be $78 million of investment in a community that hasn’t seen any investment in a century,” Austin said. “It’s going to be catalytic.”

“This project is probably one of the most impactful that we’ve funded,” said Nigel Roberts, a HOPE senior vice president for community and economic development. “It’s exciting because I know it’s a game-changer for the neighborhood. It fits right into HOPE’s mission to make sure that money and resources are going to those organizations that benefit the community.”