Unpaid fees mount on business tax breaks
Firms secure PILOTs, neglect related fees
Tucked away on a low hill not far from the river, EDGE board president Reid Dulberger’s its streets oddly angled presentation to his board comes at a time as if to spare dray horses when the EDGE board’s tax-incentive proa direct ascent, the Edge gram is being debated and reviewed. District has become like a
Some believe the reduced taxation of quiet island, a place where the courted corporations is hurting local Downtowners can pray governments’ ability to provide services. in a storefront mission, But the prevailing counter-argument is fix their radiators, buy a that the PILOTs are crucial in keeping the custom guitar, catch live The Collierville and Arlington indusemployers from going just across the state theater, grab a quick beer, trial boards and other local agencies face line to Mississippi. see tourists stroll into Sun more severe problems than the EDGE Dulberger presented charts that gave an Studio or contemplate the board in collecting late fees from compaoverview on companies that have received white expanse of the vanies that receive tax breaks. tax breaks but still failed to pay their fees cant Wonder Bread bakery.That was a message researched and in lieu of taxes. announced this week by the staff of the The EDGE board, which doubles as the Now the Edge may be Economic Development Growth Engine on the verge of wider disfor Memphis & Shelby County. covery.
Industrial Development Board, has nine delinquent PILOTs totaling $351,874.
Of those, five have been terminated. Another company owes only $87. One is in foreclosure.
Penn A Kem LLC owes the most at $262,000. The chemical company operates at 3324 Chelsea in the Douglass community.
Its PILOT payments came under dispute after another company bought Penn A Kem’s assets, Dulberger reported.
But Dulberger displayed a second chart showing that other PILOT-granting agencies are owed much than the EDGE board.
The chart showed that: Collierville Industrial Development Board has one delinquent PILOT valued at $2.1 million; Arlington IDB has one delinquent PILOT of $1.5 million; Health, Education & Housing Facilities Board of Shelby County has five late PILOTS totaling $537,627; Center City Commission has seven totaling $90,716 and Health, Education & Housing Facilities Board of Memphis has nine totaling $195,736.
Meanwhile, Dulberger reported, all the companies that have active PILOTs with his agency paid $17.9 million in Shelby County and city of Memphis taxes last year.
“Money that would not otherwise get paid,” Dulberger said.