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ACS Clothing Limited

Project Number: 20141002
Project Type: Standard/Basic
Parcel ID: 093301 A00004
County Commission District: 11 | City Council District: 3

Summary

ACS Clothing Limited was awarded a 5-year PILOT that will enable the company to add 125 new jobs and invest $16.7 million at its new location at 4400 Quality Drive Memphis, TN

The PILOT will allow the Applicant to open its first distribution facility in the United States.

The company will receive a $3,823,480 Community Reinvestment Credit (CRC) for the use of 99 percent of the 4400 Quality Drive facility.

The average annual salary of the new employees will be $33,767.

The Project will create $2,787,939 in new tax revenue for Memphis and Shelby County, a Benefit/Cost ratio of $2.53 in new tax revenue for every $1.00 of abated taxes.

ACS Clothing has projected a total of 325 net new jobs within the first five (5) years. If the additional 200 jobs threshold is met, staff recommends the approval of three additional years at a maximum abatement for a total of eight (8) years. With the additional years and 200 net new jobs, the benefit cost ratio will be $6.73.

ACS Clothing Limited is the largest tuxedo rental company in the United Kingdom (UK) with 35 percent of the UK tuxedo rental market share.

The company values the United States tuxedo rental market at $1.5 billion and plans to gain a significant amount of market share utilizing their knowledge and technologies established in the UK.

PILOT Term:

5 years

Projected New Jobs:

125

Projected Retained Jobs:

Not applicable

Total Jobs:

125

Projected Average Payroll of New Jobs:

$33,767

Projected Average Payroll of Retained Jobs:

Not applicable

Annual New Direct/Indirect Payroll:

$11,415,576

Annual Retained Direct/Indirect Payroll:

Not applicable

Total Capital Investment:

$16,659,480
Real Property Investment:
$600,000

Personal Property Investment:
$9,516,000

Community Reinvestment Credit (CRC):
$3,823,480

Capital Investment not in PILOT:
Not applicable

Projected Tax Revenue:

$2,787,939

Projected Taxes Abated:

$1,099,824
City: $480,623
County: $619,201

Benefit/Cost Ratio:

2.53

Projected MWBE/LOSB Spending:

$963,445

Incentive Provided:

$1,099,824

Compliance Information

Not applicable

Approved

10/15/2014

Ramp up Period

2 years

Closing

12/31/2014 (Real)

Effective

12/31/2014

Lease Begins

12/31/2014 (Real)

Lease Expires

12/31/2019 (Real)

Amended

Not applicable

Property Details

Lease Began

12/31/2014 (Real)

Lease Expires

12/31/2019 (Real)

ACS Clothing Limited

4400 Quality Drive, Memphis, TN 38118