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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. was awarded a 15‐year Jobs PILOT to encourage the company to locate its corporate headquarters to Memphis, TN and add 70 Net New Jobs to its current 103 Memphis-based employees.

Established in 2007, Evergreen Packaging is a global leader in creating fiber-based packaging solutions customized to deliver product freshness and brand distinction. Evergreen Packaging makes and supplies paper and paperboard products globally with manufacturing facilities in the U.S., Asia, Central America and the Middle East/North Africa. Evergreen Packaging is the number one supplier of liquid packaging board in the world. All of the fiber used in Evergreen Packaging products comes from forests in the U.S. where responsible forestry practices are used and where overall growth exceeds harvest.

The company combined its sister companies, Closure Systems International (Indianapolis, Indiana) and Graham Packaging Company (York, Pennsylvania) with Evergreen, creating 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 more than 14,000 employees worldwide.

The EDGE Jobs PILOT will assist in relocating and hiring Executive Management, Administrative Support, Corporate Accounting, Internal Auditing, and Human Resources to Memphis, TN. The average base salary for the 70 Net New Jobs is $176,283 excluding benefits and overtime.

In 2007, Evergreen was awarded a six-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.

EDGE 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 Evergreen.

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