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Hollywood Feed, LLC

Project Number: 20160301
Project Type: Jobs
Parcel ID: 043006 00008C
County Commission District: 7 | City Council District: 7


Hollywood Feed, LLC is seeking an 8‐year Jobs PILOT to enable the company to add 31 Net New Jobs, make a $5,450,000 capital investment and renovate an existing distribution facility with 167,000 square feet of warehouse space and 8,000 square feet of office space at 1339 Warford, Memphis, Tennessee.

Hollywood Feed will retain 42 employees and hire 31 new employees. The new employees will include buyers, managers, analysts, accountants and information technology personnel for the office operation. The distribution operation will add warehouse pickers, drivers and a receiving manager. The average base salary for the 31 Net New Jobs is $47,419 excluding benefits and overtime.

The Applicant will invest $1,000,000 to purchase two adjacent parcels of land and $3,300,000 to renovate the existing building on the southern parcel facing Warford. Staff recommends the existing building receive Community Reinvestment Credit. The Applicant will invest $700,000 in warehouse automation, $300,000 in new furniture, fixtures, jacks, forklifts and general equipment and $150,000 in computers, copiers, fax machines and other peripheral office equipment.

Parcel 043006 00011 is 3.5 acres and undeveloped. Parcel 043006 00008C is 6.2 acres and contains a 175,000 square foot building with the assigned address of 1339 Warford.

Hollywood Feed began in the 1950s as a Midtown feed store located on Hollywood at Jackson Avenue. Originally providing feed to regional farms, the Memphis Zoo and Memphis animal shelter, the business evolved changing its focus to household pets in a unique, customer centric environment.

Today, Hollywood Feed carries high‐quality and holistic pet products and has a growing national footprint. The company’s staff prides themselves on caring for pet wellness, personalized service and providing an in‐store experience that exceeds anything offered by competitors.

Shawn McGhee and his partners purchased Hollywood Feed in 2006 when the company had three locations serving only the Memphis market. By December of 2015 the company had successfully grownto 42 stores in five states, fifteen of which are in Texas. The company is expected to add 12 to 15 more locations in 2016.

In order to facilitate this growth, Hollywood Feed now needs to expand both its corporate and distribution operations. The Payment‐In‐Lieu‐Of‐Tax program will allow the Applicant to purchase a facility in Memphis, add jobs to the headquarters and increase distribution.

Staff projects $1,254,050 in total tax revenues to be received during the PILOT term of this project and a $656,248 benefit to Hollywood Feed.

When complete, this facility will store more than 5,000 products, serve 57 stores and employ 73 people. This will all take place in a New Markets Tax Credit eligible census tract near the intersection of Warford and Chelsea in North Memphis.

**Hollywood Feed's PILOT agreement was amended on February 21, 2018 to include an increase in real property and personal property for the project.**



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Projected Taxes Abated:

City: $286,780 (75%)
County: $369,467 (75%)

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Hollywood Feed, LLC

1339 E Warford St, Memphis, TN 38108