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Cleveland Track Materials

Project Number: 20190402
Pilot Type: Jobs
Status: Approved
Parcel ID: 049006 00025 049006 00024 049006 00030
County Commission District: 09 | City Council District: 06, 08

Summary

Cleveland Track Material, Inc. was awarded a seven-year Jobs PILOT to encourage the company to create 51 Net New Jobs and invest $6,030,000 in the City of Memphis at 391 East Mallory.

Cleveland Track has been evaluating locations to make capital investments and expand production. While the Cleveland, OH facility is the company’s largest operations facility with skilled labor in place, the Memphis facility is strategically located and is only about 10% utilized.

Cleveland Track is a manufacturer and supplier of railway trackwork to North American Class 1 railroads and transit networks. The company’s products include turnouts, crossings, and special trackwork for complex rail intersections. Cleveland Track’s global parent company is publicly traded Vossloh AG, which is headquartered in Germany and has operations in over 20 countries with over 3,900 employees worldwide. Cleveland Track operates three US manufacturing facilities with 170 employees combined in Cleveland (OH), Reading (PA) and the existing 20 person Memphis operation.

According to the terms of the PILOT, Cleveland Track Materials will hire 51 new employees with an average base salary of $47,380 excluding benefits.

EDGE Staff projects $2,176,616 in local total tax revenues to be received during the PILOT term and a $653,465 benefit to Cleveland Track Materials.

PILOT Term:

7

Projected New Jobs:

51

Projected Retained Jobs:

20

Total Jobs:

71

Projected Average Payroll of New Jobs:

$47,380

Projected Average Payroll of Retained Jobs:

Not applicable

Annual New Direct/Indirect Payroll:

$3,067,175

Annual Retained Direct/Indirect Payroll:

Not applicable

Total Capital Investment:

$6,030,000
Real Property Investment:
$3,195,000

Personal Property Investment:
$2,835,000

Community Reinvestment Credit (CRC):
Not applicable

Capital Investment not in PILOT:
Not applicable

Projected Tax Revenue:

$2,176,616

Projected Taxes Abated:

$653,465
City: $285,564 (75%)
County: $367,901 (75%)

Benefit/Cost Ratio:

2.66

Projected MWBE/LOSB Spending:

$896,770

Incentive Provided:

$653,465

Compliance Information

Not applicable

Approved

4/17/2019

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

Cleveland Track Materials

391 East Mallory, Memphis, TN 38109