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Hyosung Heavy Industries Corporation

Project Number: 20191201
Pilot Type: Jobs
Status: Approved
Parcel ID: 050118 00055 & 050118 00038
County Commission District: | City Council District:

Summary

Hyosung Heavy Industries Corporation (“Applicant”) was approved for an eleven-year Jobs PILOT to enable the company to create 131 Net New Jobs and invest $102,972,646 in the City of Memphis at 2865 Riverport Road. The total project investment includes an estimated $25,000,000 to purchase the existing facility ($1,802,000 land value appraised by Shelby County Tax Assessor and $23,198,000 preliminary estimated value of building), the purchase of existing personal property preliminarily estimated to be $21,500,000, $11,190,247 in renovations, new construction and site improvements, $7,713,909 in new personal property, and $589,334 in personal property relocated from outside of Shelby County. The investment also includes $29,451,646 in raw materials and supplies, and $7,527,510 in soft costs, fees and other project related expenses (these items are considered investment but will not be included in the PILOT). The Applicant will hire 131 new employees with an average base salary of $51,475 excluding benefits.

Parcel 050118 00055 (2865 Riverport) is 64.672 acres and contains an existing 418,826 square foot building. Parcel 050118 00038 (Riverport) is 9.290 acres. Real property improvements and construction at the site will be included in the PILOT. Existing personal property purchased and personal property relocated from outside of Shelby County will be included in the PILOT at depreciated values. New personal property at this site will be included in the PILOT.

Founded in 1962 and headquartered in Seoul, South Korea, Hyosung Heavy Industries is a public company engaged in electrical power equipment and industrial machinery. The company has revenues of $1.8 billion and operates in five countries. Hyosung is a leading provider of heavy electrical power equipment.

PILOT Term:

11

Projected New Jobs:

131

Projected Retained Jobs:

Not applicable

Total Jobs:

131

Projected Average Payroll of New Jobs:

$51,475

Projected Average Payroll of Retained Jobs:

Not applicable

Annual New Direct Payroll:

$6,743,225

Annual Retained Direct Payroll:

Not applicable

Total Capital Investment:

$102,972,646
Real Property Investment:
$36,190,247

Personal Property Investment:
$29,803,243

Community Reinvestment Credit (CRC):
$36,979,156

Capital Investment not in PILOT:
$131

Projected Tax Revenue:

$9,453,993

Projected Taxes Abated:

$10,355,785
City: $4,567,553
County: $5,788,232

Benefit/Cost Ratio:

.91

Projected MWBE/LOSB Spending:

$4,350,929

Incentive Provided:

$10,355,785

Compliance Information

Not applicable

Approved

12/18/2019

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

Hyosung Heavy Industries Corporation

2865 Riverport Road, Memphis, TN 38109