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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

Summary

Hollywood Feed, LLC was awarded 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 near the intersection of Warford and Chelsea in North Memphis, a New Markets Tax Credit eligible census tract near.

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.

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 to include 42 stores in five states, fifteen of which are in Texas.

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 Hollywood Feed to purchase a facility in Memphis, add jobs to the headquarters and increase distribution. 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

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.

**Hollywood Feed's PILOT agreement was amended on February 21, 2018 to include an increase in real property and personal property investment for the project. Hollywood Feed’s PILOT agreement was amended a second time on June 20, 2018 to include an increase in Net New Jobs (108 Net New Jobs) and an increase in real ($4,600,000) and personal property ($5,585,000) investment for the project.**

PILOT Term:

10-Years

Projected New Jobs:

108

Projected Retained Jobs:

42

Total Jobs:

150

Projected Average Payroll of New Jobs:

$49,500

Projected Average Payroll of Retained Jobs:

Not applicable

Annual New Direct/Indirect Payroll:

Not applicable

Annual Retained Direct/Indirect Payroll:

Not applicable

Total Capital Investment:

$10,185,000
Real Property Investment:
$4,600,000

Personal Property Investment:
$5,585,000

Community Reinvestment Credit (CRC):
Not applicable

Capital Investment not in PILOT:
Not applicable

Projected Tax Revenue:

$4,869,118

Projected Taxes Abated:

$1,308,211
City: $571,688 (75%)
County: $736,523 (75%)

Benefit/Cost Ratio:

3.72

Projected MWBE/LOSB Spending:

$1,096,232

Incentive Provided:

$1,308,211

Compliance Information

Not applicable

Approved

3/16/2016

Ramp up Period

2

Closing

Not applicable

Effective

Not applicable

Lease Begins

Not applicable

Lease Expires

Not applicable

Amended

2/21/2018
6/20/2018

Property Details

Lease Began

Not applicable

Lease Expires

Not applicable

Hollywood Feed, LLC

1339 E Warford St, Memphis, TN 38108