Project Number: 20170503
Project Type: Jobs
Parcel ID: 05010200045
County Commission District: 09 | City Council District: 06

Summary

Cargill, Inc. was awarded a six-year Jobs PILOT that will enable the company to create 24 Net New Jobs. Cargill will invest $20 million at 2330 Buoy Street, Memphis, Tennessee of manufacturing and machinery equipment.

The average base salary of 24 Net New employees is $60,417 excluding benefits.

Parcel 050102 00045 (2330 Buoy Street) is 24.8 acres and Cargill, Inc. will add personal property to update the Buoy facility.

Founded in 1865, Cargill, Inc. produces products used in the production of animal nutrition, food and beverage, and agriculture industries.

The PILOT will enable Cargill to optimize the corn germ network in order to aid extraction plants supplying crude corn oil to the oil refinery. The personal property investment will bring current assets up-to-date and improve plant efficiency. The investment will make the Memphis facility more efficient and operational for the future.

In 2010, Cargill was awarded an eight-year Retention PILOT. The PILOT approval enabled Cargill to retain 370 jobs, create 27 Net New Jobs, and invest $72 million at its facility located at 2330 Buoy Street, Memphis, Tennessee.

Effective January 2015, Cargill closed most of its Memphis corn milling facility due to transportation costs and its distance away from corn belt suppliers. Cargill surrendered the PILOT benefit when the facility was closed. The corn processing facility has been operating with a nominal staff of 41 employees since the closing.

Staff projects $1,500,207 in local total tax revenues to be received during the PILOT term and a $1,185,312 benefit to Cargill.

PILOT Term:

6

Projected New Jobs:

24

Projected Retained Jobs:

Not applicable

Total Jobs:

24

Projected Average Payroll of New Jobs:

$60,417

Projected Average Payroll of Retained Jobs:

Not applicable

Annual New Direct/Indirect Payroll:

$1,450,008

Annual Retained Direct/Indirect Payroll:

Not applicable

Total Capital Investment:

$20,000,000
Real Property Investment:
Not applicable

Personal Property Investment:
$20,000,000

Community Reinvestment Credit (CRC):
Not applicable

Capital Investment not in PILOT:
Not applicable

Projected Tax Revenue:

$1,500,207

Projected Taxes Abated:

$1,185,312
City: $518,670 (75%)
County: $666,642 (75%)

Benefit/Cost Ratio:

1.27

Projected MWBE/LOSB Spending:

$59,265

Incentive Provided:

$1,185,312

Compliance Information

Not applicable

Approved

5/17/2017

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

Cargill Inc.

2330 Buoy Street, Memphis, TN 38106