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Exel Inc. dba DHL Supply Chain

Project Number: 20200401
Pilot Type: Expansion
Status: Approved
Parcel ID: 094300 00601C
County Commission District: | City Council District:

Summary

Exel Inc. d/b/a DHL Supply Chain (USA) (“Applicant”) was approved for a seven-year Expansion PILOT to enable the company to retain 105 jobs with an average base salary of $36,454 and invest $20,754,228 in the City of Memphis at 6200 Global Drive.

The Applicant is actively engaged in a site selection process for a distribution center for Siemens Healthineers (“Siemens”), to provide a solution to support their late evening order cut-offs for critical same day shipments. Siemens has an expiring contract with XPO Logistics at a facility located at 5015 Citation Road that will not be renewed. Neither the Applicant nor Siemens has had a previous PILOT agreement, but because the Seimens operation is currently located in Shelby County, this project has been evaluated and is being presented as an Expansion PILOT.

The project investment includes $4,500,000 for tenant improvements and $7,854,553 in new personal property. Community Reinvestment Credit in the value of $8,399,675 ($438,588 land, $7,961,087 building) for the occupied space has been requested.

Parcel 094300 00601C (6200 Global Drive) is 23.973 acres and contains an unoccupied 422,176 square foot warehouse. The Applicant will occupy approximately 260,000 square feet. Real property improvements occupied by the Applicant (62%) will receive PILOT benefit on a proportional basis and new personal property will receive PILOT benefit.

The facility located at 6200 Global Drive was built as a speculative development knowing that the PILOT Program was available to assist tenants that may occupy the space. New leases in speculative buildings in surrounding communities are offered tax abatements and other incentives designed to attract businesses from surrounding states. The use of the Expansion PILOT Program for this project allows the community to retain 105 jobs in a New Markets Tax Credit eligible census tract in the City of Memphis, that might otherwise become inaccessible due to distance or lack of public transportation should this project be located outside of Shelby County.

DHL Supply Chain is the world’s largest contract logistics specialist, creating a competitive advantage through customized logistics solutions based on globally standardized warehousing, transportation and integrated service components. DHL Supply Chain is a wholly-owned entity of Deutsche Post DHL, an international company with combined 2019 revenues of over $69 Billion, approximately 550,000 employees with operations in over 220 countries and territories worldwide.

DHL Supply Chain operates 6 facilities in Shelby County employing approximately 1,600 and 7 facilities in Mississippi and Arkansas employing over 525. The desired location will manage global exports, administer reverse logistics for Siemens North American returns and provide critical parts and components required to maintain all of Siemens diagnostic and imaging medical equipment. The Applicant has been considering locations in Tennessee, Mississippi, and Arkansas.

PILOT Term:

7

Projected New Jobs:

Not applicable

Projected Retained Jobs:

105

Total Jobs:

105

Projected Average Payroll of New Jobs:

Not applicable

Projected Average Payroll of Retained Jobs:

$36,454

Annual New Direct Payroll:

Not applicable

Annual Retained Direct Payroll:

$3,827,670

Total Capital Investment:

$20,757,228
Real Property Investment:
$4,500,000

Personal Property Investment:
$7,854,553

Community Reinvestment Credit (CRC):
Not applicable

Capital Investment not in PILOT:
$105

Projected Tax Revenue:

$4,230,109

Projected Taxes Abated:

$2,355,867
City: $1,039,101
County: $1,316,766

Benefit/Cost Ratio:

1.80

Projected MWBE/LOSB Spending:

$1,478,380

Incentive Provided:

$2,355,867

Compliance Information

Not applicable

Approved

4/15/2020

Ramp up Period

2

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

Exel Inc. dba DHL Supply Chain

6200 Global Drive, Memphis, TN 38141