MEMPHIS, Tenn. (WMC) – The City of Memphis is proposing to direct more than $3 million in xAI tax revenue toward the Boxtown community and others areas in the 38109 zip code that falls within a 5-mile radius of the xAI plant.
$3,259,282 is 25% of the total tax revenue collected from xAI during fiscal year 2026. Residents say the money does not go far enough.
The Young administration split the proposed funds into several categories following resident surveys. According to Deputy Chief of Staff Renee Sekander, 74% of survey respondents were from the 38109 zip code.
The categories include: Home Repair program ($1.4 million), paid community cleanup workforce program ($500,000), grants for safety and community-based initiatives ($400,000), demolition and board up vacant properties ($330,000), removal of litter, debris, illegal dumping ($334,282), environmental education ($100,000), Memphis City Beautiful volunteer cleanup program ($75,000), environmental testing and reporting ($100,000), and cooling device distribution ($20,000).
The largest proposed allocation, $1.4 million, would go toward home repair for eligible residents within the 5-mile radius. There are approximately 11,000 homes in that area built before 1960, according to Sekander.
This portion of the funds would be structed as a loan up to $30,000 to eligible residents. The loan would be interest free and would not have to be paid back after 5 years of living in the home repaired.
Boxtown resident Marilyn Gooch said the home repair funding will not stretch far enough.
“I’d prefer to see that other funding go toward that in addition,” Gooch said. “Because when you start looking at what it would cost some of these homes to be repaired, that $1.4 million is going to go very fast.”
Some residents said no dollar amount addresses their core concerns.
“So there’s no amount of money that can pay for our health and give us what we need as far as a quality of life,” Gooch said.
Resident Sarah Gladney said she wants city leaders to be more selective about which companies are permitted to move into the area.
“They can come in and make the people feel like they are aware of what we are going through and they are there to support us in the fight,” Gladney said.
Gooch also said the $3 million total falls short of what the community needs.
“I don’t think that is good enough,” Gooch said. “I think that what’s good for us is primarily our, is my health, our health. And to do what’s best for us from a health standpoint in terms of ensuring that there’s no expansion.”
The proposal is still awaiting a vote from the full Memphis City Council.
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