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Ebrofrost North America, Inc.

Project Number: 20170401
Project Type: Jobs
Parcel ID: 049069 00006Z
County Commission District: 10 | City Council District: 06

Summary

Ebrofrost North America, Inc. was awarded an eight-year Jobs PILOT to enable the company to create 19 Net New Jobs and invest $26,544,185 in the City of Memphis at 2360 Prospect Street.

The total project investment includes $7,050,000 to renovate 54,326 square feet of an existing 85,021 square foot building, $3,750,000 to build 24,000 square feet of new space, $250,000 in soft costs and $13,884,000 for new personal property.

The Applicant is requesting Community Reinvestment Credit for the portion of the existing property to be occupied valued at $1,610,185.

Ebrofrost North America, Inc. will hire will hire 19 new employees with an average base salary of $60,654, excluding overtime and benefits.

The project site is to be owned by Riviana Foods, Inc. and leased to Ebrofrost North America, Inc. Parcel 049068 00001C (2360 Prospect Street) is 6.49 acres and contains the existing warehouse. Parcel 049069 00006Z (0 Prospect Street) is 0.085 acres and vacant. In addition, approximately 0.873 acres of vacant land in adjacent Parcel 049059 00057 (865 East Bodley Avenue) will be included in the project site and remapped by the Shelby County Assessor to reflect the purchase by Riviana Foods, Inc.

All of Ebrofrost North America, Inc.'s qualified personal property will be included in the PILOT. All of the real estate will be placed in the PILOT; but Ebrofrost North America, Inc.'s benefit and PILOT payments will be calculated proportionally based on the amount of improved space occupied by the company, estimated to be 71.9% of the property upon completion of construction.

Ebrofrost North America, Inc. is a wholly owned subsidiary of Ebrofrofrost Holding GmbH, the largest rice and second largest pasta manufacturer in the world. This facility will be the equivalent of three similar operations in Europe that process and distribute IQF (Individually Quick Frozen) rice, pasta and grain products.

Ebrofrost North America, Inc. has opportunities to place this project in Missouri, Minnesota and Canada, but would like to co-locate with its sister company, Riviana Foods, and access Memphis’s central distribution advantages. In addition to warehouse space, Ebrofrost North America, Inc. will need to build a clean processing area and a flash freezing area as part of the manufacturing operation. The Payment-In-Lieu-Of-Tax program will allow Ebrofrost North America, Inc. to renovate an existing facility in Memphis that fits their needs, construct vital new manufacturing components and hire new employees.

Staff projects $2,036,270 in local total tax revenues to be received during the PILOT term of this project and a $2,668,270 benefit to Ebrofrost North American, Inc.

**Ebrofrost North America, Inc.'s PILOT agreement was amended on February 21, 2018 to include an increase of net new jobs with a higher salary component; increase in occupied building percentage; and an increase in real property investment to be included in the PILOT. **

PILOT Term:

8 year

Projected New Jobs:

19

Projected Retained Jobs:

Not applicable

Total Jobs:

19

Projected Average Payroll of New Jobs:

$60,654

Projected Average Payroll of Retained Jobs:

Not applicable

Annual New Direct/Indirect Payroll:

$1,152,426

Annual Retained Direct/Indirect Payroll:

Not applicable

Total Capital Investment:

$26,544,185
Real Property Investment:
$10,800,000

Personal Property Investment:
$13,884,000

Community Reinvestment Credit (CRC):
$1,610,185

Capital Investment not in PILOT:
$250,000

Projected Tax Revenue:

$2,036,270

Projected Taxes Abated:

$2,668,269
City: $1,166,033 (75%)
County: $1,502,236 (75%)

Benefit/Cost Ratio:

0.78

Projected MWBE/LOSB Spending:

$3,100,238

Incentive Provided:

$2,668,270

Compliance Information

Not applicable

Approved

4/19/2017

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

Ebrofrost North America, Inc.

2360 Prospect Street, Memphis, TN 38106