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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. (“Applicant”) is seeking a seven-year Jobs PILOT to enable the company to create 16 Net New Jobs and invest $25,914,467 in the City of Memphis at 2360 Prospect Street.

The total project investment includes $7,050,000 to renovate 38,086 square feet of an existing 85,021 square foot building, $3,750,000 to build 18,714 square feet of new space, $250,000 in soft costs and $13,845,000 for new personal property.

The Applicant is requesting Community Reinvestment Credit for the portion of the existing property to be occupied valued at $1,019,467.

The Applicant will hire 16 new employees with an average base salary of $48,477, excluding overtime and benefits.

The project site is to be owned by Riviana Foods, Inc. and leased to the Applicant. 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 the Applicant’s qualified personal property will be included in the PILOT. All of the real estate will be placed in the PILOT but the applicant’s benefit and PILOT payments will be calculated proportionally based on the amount of improved space occupied by the Applicant, estimated to be 54.8% 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.

The Applicant 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, the Applicant 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 the Applicant to renovate an existing facility in Memphis that fits their needs, construct vital new manufacturing components and hire new employees.

Staff projects $1,581,690 in local total tax revenues to be received during the PILOT term of this project and a $2,037,178 benefit to the Applicant.

PILOT Term:

7 year

Projected New Jobs:

16

Projected Retained Jobs:

Not applicable

Total Jobs:

16

Projected Average Payroll of New Jobs:

$48,477

Projected Average Payroll of Retained Jobs:

Not applicable

Annual New Direct/Indirect Payroll:

$775,632

Annual Retained Direct/Indirect Payroll:

Not applicable

Total Capital Investment:

$25,914,467
Real Property Investment:
$11,819,467

Personal Property Investment:
$13,845,000

Community Reinvestment Credit (CRC):
$1,019,467

Capital Investment not in PILOT:
Not applicable

Projected Tax Revenue:

$1,581,690

Projected Taxes Abated:

$2,037,178
City: $890,247 (75%)
County: $1,146,931 (75%)

Benefit/Cost Ratio:

0.78

Projected MWBE/LOSB Spending:

$3,005,577

Incentive Provided:

$2,037,178

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