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International Paper

Project Number: 20130202
Project Type: Retention
Parcel ID: 080008 00567
County Commission District: 4 | City Council District: 2, 9, 3, 8

Summary

International Paper Co. was awarded a 15-year Retention PILOT to help the paper and packaging manufacturer create 101 new jobs, retain 2,274 jobs and invest $115 million.

International Paper (NYSE: IP) is a leading global producer of renewable fiber-based packaging, pulp and paper products with manufacturing operations in North America, Latin America, Europe, North Africa, India and Russia. International Paper produces corrugated packaging products that protect and promote goods, and enable worldwide commerce; pulp for diapers, tissue and other personal hygiene products that promote health and wellness and papers that facilitate education and communication. International Paper is headquartered in Memphis, TN, and employs approximately 52,000 colleagues located in more than 24 countries.

With the expansion, International Paper plans to construct a 10-story, 235,000-square-foot tower at its corporate headquarters that will feature a 470-car garage and two pedestrian bridges. The company will also invest in upgrades to its 6350 Poplar Avenue office tower.

Previously under the past Industrial Development Board of Shelby County, International Paper was awarded five PILOTs which have since expired. International Paper was awarded an Expansion PILOT in 2000 (2015 expiration date) and in 2005 when the company moved its global headquarters from Stanford, CT to Memphis, TN (2020 expiration date).

The project will create $226,092,026 in local tax revenue for Memphis and Shelby County, a benefit-cost ratio of $4.26 in new tax revenue to every $1.00 of abated taxes.

PILOT Term:

15 years

Projected New Jobs:

101

Projected Retained Jobs:

2,274

Total Jobs:

2,375

Projected Average Payroll of New Jobs:

$93,225

Projected Average Payroll of Retained Jobs:

$161,719

Annual New Direct/Indirect Payroll:

$633,968,540

Annual Retained Direct/Indirect Payroll:

Not applicable

Total Capital Investment:

$223,761,909
Real Property Investment:
$81,550,000

Personal Property Investment:
$29,190,000

Community Reinvestment Credit (CRC):
$108,021,909

Capital Investment not in PILOT:
Not applicable

Projected Tax Revenue:

$226,092,026

Projected Taxes Abated:

$56,859,883
City: $24,847,769
County: $32,012,114

Benefit/Cost Ratio:

4.26

Projected MWBE/LOSB Spending:

$130,000,000

Incentive Provided:

$56,859,883

Compliance Information

Not applicable

Approved

2/20/2013

Ramp up Period

4 years

Closing

12/31/2014 (Real)

Effective

12/31/2014

Lease Begins

12/31/2014 (Real)

Lease Expires

Not applicable

Amended

Not applicable

Property Details

Lease Began

12/31/2014 (Real)

Lease Expires

Not applicable

International Paper

6420 Poplar Ave, Memphis, TN 38119