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Evergreen Packaging, Inc.

Project Number: 20160302
Project Type: Jobs
Parcel ID: 056039 00029
County Commission District: 13 | City Council District: 5

Summary

Evergreen Packaging Inc. (“Applicant”) is seeking a 15‐year Jobs PILOT to enable the company to add 70 Net New Jobs, in addition to its current 103 employees located in Memphis, Tennessee. The Applicant will make a $3,823,800 capital investment to renovate an additional 17,000 square‐feet square‐feet at 5350 Poplar Avenue Suite 600, Memphis, Tennessee. Evergreen will occupy a total of 40,000 square‐feet.

Graeme Hart, the owner of Evergreen, has decided to combine Evergreen along with two(2) sister companies; Closure Systems International (Indianapolis, Indiana) and Graham Packaging Company (York, Pennsylvania) into one consolidated global packaging organization. Together these three companies comprise 127 global manufacturing facilities in 36 countries with revenue in excess of $5 billion and over 14,000 employees worldwide.

The new employees will include Executive Management,Administrative Support, Corporate Accounting, Internal Auditing and Human Resources. The average base salary for the 70 Net New Jobs is $176,283 excluding benefits and overtime.

The Applicant will invest $260,000 to renovate the Poplar Avenue facility. Staff recommends the existing building receive Community Reinvestment Credit. The Applicant will invest $550,000 in Furniture, Fixtures and General Equipment. Additionally, the Applicant will invest $105,000 in Computers and Office Equipment.

Parcel 056039 00029 is 3.6 acres and contains a 163,446 square foot building with the assigned address of 5350 Poplar Avenue. The Applicant will occupy 40,000 square‐feet.

Established in 2007 when the applicant purchased Blue Ridge Paper Products Inc. Blue ridge Products Inc. was an independent manufacturer of beverage packing products. The Blue Ridge business included fresh beverage facilities and a mill in Canton North Carolina. Over the years, Evergreen has been responsible for many breakthroughs in beverage carton packaging.

In 2007, Evergreen was awarded a six(6)‐year PILOT on Real and Personal Property to create 65 Net New Jobs and invest $450,000 in real property and $550,000 in Personal property. The Real property PILOT was terminated effective 1/2/2014 and the Personal Property effective 12/31/21014.

Staff projects $7,139,205 in total tax revenues to be received during the PILOT term of this project and a $1,167,403 benefit to the Applicant.When the three (3) year ramp‐up is complete, this facility will act as the corporate Headquarters for the entire organization.

PILOT Term:

15

Projected New Jobs:

70

Projected Retained Jobs:

103

Total Jobs:

173

Projected Average Payroll of New Jobs:

$176,283

Projected Average Payroll of Retained Jobs:

Not applicable

Annual New Direct/Indirect Payroll:

$12,339,810

Annual Retained Direct/Indirect Payroll:

Not applicable

Total Capital Investment:

$3,823,800
Real Property Investment:
$3,168,800

Personal Property Investment:
$655,000

Community Reinvestment Credit (CRC):
$3,823,800

Capital Investment not in PILOT:
$2,908,800

Projected Tax Revenue:

$7,139,205

Projected Taxes Abated:

$1,176,403
City: $519,155 (44%)
County: $657,248 (56%)

Benefit/Cost Ratio:

6.12

Projected MWBE/LOSB Spending:

$885,000

Incentive Provided:

$1,167,403

Compliance Information

Not applicable

Approved

3/16/2016

Ramp up Period

3

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

Evergreen Packaging, Inc.

5350 Poplar Avenue, Suite 600 Memphis, TN 38119