Memphis To Manage Beale Street

The company that helped put Beale Street in Memphis, Tenn., on the map has surrendered a long-term contract to manage the historic entertainment district.

A legal dispute between the city and management company Performa Entertainment was recently settled hours before it was scheduled to go to trial. The settlement gives the city more control of the district and could lead to increased revenues.

“It does not make any sense to continue litigation which continues to make Beale Street a liability and a drain on taxpayers’ dollars,” Memphis Mayor A.C. Wharton told the Commercial Appeal. “Instead, we focused on making the street a valuable asset and revenue-generating engine for the city.”

Performa CEO John Elkington signed a 52-year lease to manage the district in 1982, the paper reported, when it was a far cry from its current state that houses restaurants, bars and venues including B.B. King’s Blues Club and Hard Rock Café.

“Pioneers always get bloodied and Mr. Elkington falls into the category of a pioneer,” Wharton said. “He went in when no one else would and brought Beale Street to where it is now.”

Under the terms of the settlement, Performa will receive 5 percent leasing commissions through 2034, the paper reported. City officials are looking into long-term planning to strengthen business on the street.