Health Care Realty of Memphis LLC is seeking a payment-in-lieu-of-taxes incentive for a long-term acute care hospital and outpatient facility in Southeast Memphis’ Kirby Gate development in Southeast Memphis. The application is scheduled to be heard at the Sept. 15 meeting of the Memphis and Shelby County Industrial Development Board.

Memphis Business Journal first reported the development in its Aug. 27-Sept. 2 issue and explored the local market’s needs for another long-term acute facility and development of the growing medical community around Kirby Gate.

Health Care Realty hopes to develop a 24-bed, long-term care specialty hospital and 90-bed nursing home on about 8.6 acres at the corner of Kirby Parkway and Kirby Gate Boulevard.

Last year the Tennessee Health Services and Development Agency granted certificates of approval for the facilities for Health Care Realty subsidiary AmeriCare Health Properties LLC. The nursing home, dubbed Oaktree Health Rehabilitation Center, with a projected cost of $8.64 million. The long-term acute care facility, which will operate under the Memphis Long Term Care Specialty Hospital LLC, is expected to cost $7.62 million.

Total capital investment in the project is $16.25 million.

The two facilities combined are expected to create 157 net new jobs, according to Health Care Realty’s PILOT application. The company is seeking a PILOT term of 8 years, which would result in a cost savings of $1.53 million.