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Blues City Brewery, LLC 2
Project Number: 20200101
Pilot Type: Jobs
Status: Approved
Parcel ID: 093400 00628
County Commission District: | City Council District:
Pilot Type: Jobs
Status: Approved
Parcel ID: 093400 00628
County Commission District: | City Council District:
Summary
Blues City Brewery, LLC (“Applicant”) was approved for a 12-year Jobs PILOT to enable the company to create 155 Net New Jobs with an average base salary of $56,609 and invest $49,000,000 for new personal property/manufacturing machinery only in the City of Memphis at 5151 E Raines Road. No real property benefit will be granted.The Blues City Brewery facility currently benefits from a 15-year PILOT Term approved by the Industrial Development Board in 2011. The approved project included a total capital investment of $41,000,000 and the creation of 500 new jobs at an average annual wage of $47,706 excluding benefits. The project has exceeded commitments with 516 existing employees earning more than $54,000 annually and $51,497,305 in total capital investment. The Applicant has met 68% of its committed spending with City of Memphis and Shelby County certified Minority and Woman Owned Business Enterprises and is on track for fulfilling the commitment by the end of the PILOT Term.
The following request was approved for new personal property only to help facilitate significant increases in both production capacity and employment at this facility.
Parcel 093400 00628 (5151 E Raines Rd) is 83.13 acres with existing manufacturing and supporting buildings of 1,321,040 square feet. Only new personal property at the site will be included in the PILOT.
The Applicant’s parent company, City Brewing Company, headquartered in La Crosse, WI operates three contract brewing facilities in the United States. The company is currently experiencing increased system-wide demands for liquid processing and packaging services and is evaluating locations to expand its production capacity. The Memphis facility has the capacity to produce over 60 million cases a year. Built by Schlitz Brewing Company in 1971, and purchased by City Brewing in 2011, this co-packing facility produces many national and international brands, with 5 can lines, 1 bottle line, 1 variety pack line and 1 keg line.
While the Memphis facility is well positioned in the center of the country, it contains several production lines that are currently not in use due to age, necessary upgrades or obsolescence. In order to remain competitive, the applicant needs to make a significant investment in manufacturing and processing equipment in the Memphis Blues City Brewery plant. Additionally, the project is in a severely distressed New Markets Tax Credit Qualified Census Tract with a poverty rate of 29.6% and an unemployment rate of 14%.
PILOT Term:
12
Projected New Jobs:
155
Projected Retained Jobs:
Not applicable
Total Jobs:
155
Projected Average Payroll of New Jobs:
$56,609
Projected Average Payroll of Retained Jobs:
Not applicable
Annual New Direct Payroll:
$8,774,395
Annual Retained Direct Payroll:
Not applicable
Total Capital Investment:
$49,000,000
Real Property Investment:
Not applicable
Personal Property Investment:
$49,000,000
Community Reinvestment Credit (CRC):
Not applicable
Capital Investment not in PILOT:
Not applicable
Projected Tax Revenue:
$10,099,286
Projected Taxes Abated:
$3,666,810
City:
$1,617,320
County:
$2,049,490
Benefit/Cost Ratio:
2.75
Projected MWBE/LOSB Spending:
$183,341
Incentive Provided:
$3,666,810
Compliance Information
Not applicable
Approved
1/15/2020
Ramp up Period
2
Closing
12/31/2020 (Personal)
Effective
12/31/2020
Lease Begins
12/31/2020 (Personal)
Lease Expires
12/31/2032 (Personal)
Amended
Not applicable
Property Details
Lease Began
12/31/2020 (Personal)
Lease Expires
12/31/2032 (Personal)