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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:

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

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

Blues City Brewery, LLC 2

5151 East Raines Road, Memphis, TN 38118