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Eversana Life Science Services, LLC

Project Number: 20210402
Pilot Type: Expansion
Status: Approved
Parcel ID: 093400 00586, 093400 00563, 093400 00585, 093400 00543
County Commission District: | City Council District:

Summary

Eversana Life Science Services, LLC (“Applicant”) was approved for a fifteen-year Expansion PILOT to enable the company to retain 315 existing employees, create 50 net new jobs, renovate and expand into 4500 Mendenhall, renovate three other existing facilities and invest $30,000,000 in the project excluding Community Reinvestment Credit of $43,273,766.

The total project investment includes $18,000,000 for renovation, construction and site improvements, and $12,000,000 for new equipment and personal property. Community Reinvestment Credit of $43,273,766 ($2,165,848 land and $41,107,918 building) has been requested.

The Applicant will maintain a total of 365 employees with an average wage of $42,800 excluding benefits.

This project consists of four different properties. Real property improvements and new personal property at these locations will be included in the PILOT.
• Parcel 093400 00586 (4500 Mendenhall) is 16.90 acres and contains a 358,000 square foot building. The applicant will occupy 100% of this property.
• Parcel 093400 00563 (4550 Mendenhall) is 21.99 acres and contains a 460,000 square foot building. The applicant will occupy 100% of this property.
• Parcel 093400 00585 (4580 Mendenhall) is 9.33 acres and contains a 168,000 square foot building. The applicant will occupy 100% of this property.
• Parcel 093400 00543 (5650 Challenge) is 19.49 acres and contains a 420,000 square foot building. The applicant will occupy 260,000 square feet and receive proportional benefit for 61.9% of this property.

Based in Milwaukee, Eversana is a pharmaceutical services company that has grown through a merger of six independent businesses including Dohmen Life Science Services that has operated in Memphis since 1992. This privately held company employs 3,000 people in 20 facilities around the globe. Eversana serves more than 500 pharmaceutical and medical device companies with logistics, pricing, sales, data and compliance. On behalf of manufacturers, the company connects products to patients, distributing to wholesalers, hospitals and pharmacies.

A strength of Eversana is the ability to distribute products safely, very quickly and on a large scale. Today, the company’s pharma-distribution and medical-product warehousing is dependent on its current three building Memphis footprint along with other facilities across the country. While considering multiple growth strategies and consolidation plans including the construction of a single facility in North Mississippi, the company desires to maintain its current Memphis footprint and headcount, to expand into a fourth Memphis facility, and to relocate jobs from Milwaukee.

The properties to be occupied by Eversana produce $1,254,244 in direct City of Memphis and Shelby County property taxes annually. Estimated direct annual property taxes will average $941,930 during the PILOT term and $1,828,127 after. Staff projects $38,231,172 in total local tax revenues to be received during the PILOT term of this project and a $13,864,227 benefit to the Applicant.

PILOT Term:

15

Projected New Jobs:

50

Projected Retained Jobs:

315

Total Jobs:

365

Projected Average Payroll of New Jobs:

$42,800

Projected Average Payroll of Retained Jobs:

$42,800

Annual New Direct Payroll:

$2,140,000

Annual Retained Direct Payroll:

$13,482,000

Total Capital Investment:

$30,000,000
Real Property Investment:
$18,000,000

Personal Property Investment:
$12,000,000

Community Reinvestment Credit (CRC):
$43,273,766

Capital Investment not in PILOT:
Not applicable

Projected Tax Revenue:

$38,231,172

Projected Taxes Abated:

$13,864,227
City: $6,115,092
County: $7,749,135

Benefit/Cost Ratio:

2.76

Projected MWBE/LOSB Spending:

$6,579,634

Incentive Provided:

$13,864,227

Compliance Information

Not applicable

Approved

1/20/2021

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

Eversana Life Science Services, LLC

4500 Mendenhall, Memphis, TN 38141