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Memphis council approves sale of city land to XAI for gray‑water plant amid community concerns
Summary
The council approved the sale of about 13 acres of city land at 2685 Plant Road to XAI for $820,000 to build a gray‑water facility intended to replace aquifer water used by industrial customers; the vote drew questions from members about air emissions, transparency and next steps for permitting and community outreach.
Memphis City Council members voted to approve the sale of a roughly 13‑acre portion of a city parcel at 2685 Plant Road to XAI for $820,000, a vote that cleared the measure on same‑night minutes after extended discussion and public questions. The company plans to build a gray‑water treatment facility intended to provide processed wastewater for cooling at large industrial users, replacing some aquifer withdrawals.
Supporters, including Mayor Paul Young and Brent Mayo of XAI, said the project will reduce aquifer usage and bring an $80 million privately funded treatment plant and related construction to the city. Ted Townsend, president and CEO of the Greater Memphis Chamber, and Doug McGowan, president and CEO of Memphis Light, Gas & Water, told council members the project aligns with business and environmental goals.
Opponents and several members pressed XAI and the administration for more detail on emissions, permitting and community engagement. Councilwoman Cooper‑Sutton urged additional community meetings before a sale, citing residents’ concerns about air pollution and the need for clarity about water consumption and discharge rates. Councilwoman White pushed for clearer contractual protections for the city; council staff revised the purchase contract to add a reversion clause and a right of first refusal after questions raised at an earlier meeting.
XAI representatives said the plant is designed to treat reclaimed wastewater to supply cooling needs, and the company has ordered long‑lead equipment and begun design work in anticipation of approvals. The company said the proposed plant would be sized to replace current aquifer use and is designed with capacity to expand.
Administration officials said the city paid about $200,000 for the larger tract years earlier and would retain the remainder of the parcel. The mayor said the hotel/motel tax increase under consideration would be part of the long‑term financing plan for public contributions tied to the broader FedExForum renovation project; that measure must pass separately and will require three council readings.
Council members asked the administration and XAI to provide more detailed written answers to outstanding questions and to schedule neighborhood meetings about the plant’s design and permits. Administration and company representatives said they would provide written responses and follow up publicly on permitting status once property closing and permitting details are finalized.
