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Barrett Distribution Centers, LLC

Project Number: 20180302
Project Type: Jobs
Parcel ID: 09420000507
County Commission District: | City Council District:

Summary

Barrett Distribution Centers, LLC was awarded an eight-year Jobs PILOT to encourage the company to create 74 net new jobs and invest $22,100,307 at 6100 East Holmes Road.

The total project investment includes $1,200,000 for construction and site improvements and $7,431,631 for manufacturing machinery. The project was awarded Community Reinvestment Credit for property valued at $13,468,676 ($640,855 land and $12,827,821 building value).

Barrett Distribution will create 74 net new jobs with an average salary of $44,217 excluding benefits.

Parcel 094200 00507 (6100 East Holmes Road) is 37.46 acres and contains an 823,212 square foot warehouse, of which Barrett Distribution will occupy 414,500 square feet. Only 50.35% of real property (the space occupied by the Barrett Distribution) will be included in the PILOT. New personal property investments at this location is included in the PILOT.

Barrett Distribution Centers, LLC operates third-party warehouse and distribution centers. The company has one other facility in the Memphis market that has taken advantage of, and performed well in, the PILOT program.

This location will provide apparel distribution and order fulfillment for international clothing brands. Activities at this location will include full-carton and individual garment picking, as well as other value-added services.

The company has considered multiple locations in three states for this operation.

Staff projects $3,285,033 in local total tax revenues to be received during the PILOT term of this project and an estimated $2,952,889 benefit to Barrett Distribution.

PILOT Term:

8

Projected New Jobs:

74

Projected Retained Jobs:

Not applicable

Total Jobs:

74

Projected Average Payroll of New Jobs:

$44,217

Projected Average Payroll of Retained Jobs:

Not applicable

Annual New Direct/Indirect Payroll:

$3,272,058

Annual Retained Direct/Indirect Payroll:

Not applicable

Total Capital Investment:

$22,100,307
Real Property Investment:
$1,200,000

Personal Property Investment:
$7,431,631

Community Reinvestment Credit (CRC):
$13,468,676

Capital Investment not in PILOT:
Not applicable

Projected Tax Revenue:

$3,285,033

Projected Taxes Abated:

$2,952,889
City: $1,290,412 (75%)
County: $1,662,477 (75%)

Benefit/Cost Ratio:

1.11

Projected MWBE/LOSB Spending:

$742,933

Incentive Provided:

$2,952,889

Compliance Information

Not applicable

Approved

3/21/2018

Ramp up Period

2

Closing

Not applicable

Effective

Not applicable

Lease Begins

Not applicable

Lease Expires

Not applicable

Amended

Not applicable

Property Details

Lease Began

Not applicable

Lease Expires

Not applicable

Barrett Distribution Centers, LLC

6100 East Holmes Road, Memphis, TN 38141