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DunAn Precision Inc

Project Number: 20151102
Project Type: Standard/Basic
Parcel ID: 093400 00543
County Commission District: | City Council District:

Summary

Memphis, Tenn. – DunAn Precision, Inc. (Applicant) is seeking an 8-year Basic PILOT to enable the company to add 104 net new jobs and invest more than $23 million at 5750 Challenge Dr.

The Applicant will invest $500,000 in real property improvements and $19,500,000 in personal property improvements at 5750 Challenge Dr.

In addition, the Applicant will receive $3,648,000 in Community Reinvestment Credit (CRC) for the use of 160,000 square feet (38 percent) of the Challenge Dr. facility, for a total capital investment of $23,648,000.

The average annual salary of the 104 net new employees will be $54,529.

The project will create $4,271,495 in new tax revenue for Memphis and Shelby County, and has a benefit to cost ratio of $2.01 of new tax revenue for every $1 of taxes abated.

The 8-year PILOT will allow for expansion and future growth within Memphis and Shelby County. T​he PILOT will allow the Applicant to locate a new heat exchanger manufacturing facility in Memphis and Shelby County.

Founded in 1987, DunAn is a global enterprise specializing in advanced manufacturing with more than $1.21 billion in sales revenue. DunAn’s market share for service valves, accumulators and pipe assemblies ranks first in the industry and the market share for reversing valves ranks second.

PILOT Term:

8 years

Projected New Jobs:

104

Projected Retained Jobs:

Not applicable

Total Jobs:

104

Projected Average Payroll of New Jobs:

$54,529

Projected Average Payroll of Retained Jobs:

Not applicable

Annual New Direct/Indirect Payroll:

$6,896,000

Annual Retained Direct/Indirect Payroll:

Not applicable

Total Capital Investment:

$23,648,000
Real Property Investment:
$500,000

Personal Property Investment:
$15,950,000

Community Reinvestment Credit (CRC):
Not applicable

Capital Investment not in PILOT:
$3,648,000

Projected Tax Revenue:

$4,271,495

Projected Taxes Abated:

$2,125,817
City: $928,982 (75%)
County: $1,196,835 (75%)

Benefit/Cost Ratio:

2.01

Projected MWBE/LOSB Spending:

$560,250

Incentive Provided:

$2,125,817

Compliance Information

Not applicable

Approved

11/18/2015

Ramp up Period

2 years

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

DunAn Precision Inc

5750 Challenge Drive, Memphis, TN 38103