EDGE board approves $20 million in tax breaks
Economic development group hopes to lure jobs to Memphis
In an attempt to encourage companies to set up operations or expand in Memphis, the Economic Development Growth Engine for Memphis and Shelby County board approved several tax breaks Wednesday, totaling almost $20 million.
The board approved three payment-in-lieu-of-taxes (PILOT) incentives, including for Ubiquiti, the company owned by Grizzlies owner Robert Pera.
The approvals came the same day Shelby County Commissioner Tami Sawyer introduced a resolution in a committee meeting to put a 180-day moratorium on the issuance of new PILOT incentives. The majority of her fellow commissioners voted against it.
Board member Gerre Currie said the board was a diverse group of people “trying to move this city forward,” doing hard work “that you have to have a passion to do.”
“I would hate for anyone at any time to think that we are rubber stamping” projects, Currie said.
Board chair Al Bright said he welcomed scrutiny of how the organization granted incentives and said he had faith in their process.
Ubiquiti
Board members approved a 10-year PILOT worth $1.8 million for the New York-based company to set up warehousing operations in 161,000 square feet of unused space in a facility at 6200 Global Drive. The company said if it moves forward with the project, it would spend $2 million renovating the facility and $3 million on equipment.
“Obviously, Memphis means a lot to us,” said director of business development Safi Mojaddidi. “The CEO has a lot of ties to Memphis.”
The company said setting up Memphis operations would create 25 jobs at an average annual salary of $39,625. That figure includes overtime and benefits. The jobs created would include packers, return operators and inventory specialists as well as supervisor roles.
Mojaddidi said the company planned to hire permanent employees immediately. He said the employees would also receive annual bonuses, annual raises and opportunities for overtime work.
Imperial Industrial Supply Company
Also approved was a 10-year PILOT for Imperial Industrial Supply Company worth about $4.1 million. Imperial is proposing purchasing a 321,000-squarefoot facility at 6099 Global Crossing Drive.
The company said the expansion would create 35 jobs over two years and 50 jobs over five years with an average annual wage of $37,771, up to an average of about $49,000 including overtime and benefits, according to the PILOT application. Jobs would include package pullers, security, IT, supervisors, shippers and other positions.
David Raskin of Imperial said some of the jobs would start as temporary positions, but the company intended to transition the positions to permanent employment within 90 days.
“We intend to hire on and keep them as our employees,” he said.
The project would be a capital investment of about $21 million if it moves forward. That figure includes the cost of purchasing the facility, making renovations and buying machinery and other equipment.
The California-based company, which retails and wholesales tools and industrial hardware, is seeking a base of operations closer to its core customer base, 70% of which is east of the Mississippi River.
Currently, Imperial ships about 15% of its inventory through Millington through an agreement with a thirdparty logistics provider. If the company sets up operations in Memphis, it would terminate that partnership
Eversana Life Science Services
The board also approved a 15-year expansion PILOT worth about $14 million for Eversana Life Science Services on Wednesday. The company said the expansion would retain 315 jobs currently in Memphis and bring 50 new jobs to Memphis from Milwaukee, where the company is based.
Eversana said the average annual wage of the new jobs would be $42,800. EDGE board members said they were pleased with that average wage and with the number of jobs that would be created and retained if the company expanded in Memphis.
The pharmaceutical services company currently operates three facilities in Memphis and requested the incentive to assist with expanding into a fourth, 58,000-square-foot building, which would bring the company’s total Memphis footprint to 1.2 million square feet.
Eversana’s Danny Williams said the company would like to consolidate under one roof and is considering a facility in North Mississippi that would be large enough, but would consider staying in Memphis in multiple facilities.
“With this business having an almost three-decade track record in Memphis we hope... to find an agreeable path forward,” he told board members.
The new facility would be located at 4500 S. Mendenhall Road, between two of Eversana’s existing facilities. The company also said it intended to renovate its three current facilities in Memphis for a total capital investment of $30 million.
Corinne Kennedy covers economic development, soccer and COVID-19’S impact on hospitals for The Commercial Appeal. She can be reached via email at Corinne.kennedy@commercialappeal.com or at 901297-3245.