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JM Smucker LLC 2

Project Number: 20190401
Pilot Type: Jobs
Status: Approved
Parcel ID: 074032 00038
County Commission District: 11 | City Council District: 03 09

Summary

J.M. Smucker, LLC was awarded a six-year Jobs PILOT to encourage the company to create 25 Net New Jobs and invest $8,880,000 in the City of Memphis at 4740 Burbank Road.

JM Smucker has been evaluating options for production of Jif Creamy Clusters (granola snacks with peanut butter centers), renovation of facilities to accommodate this production, and installation of related manufacturing and packaging equipment.

Founded in 1897 and headquartered in Orrville, Ohio, The J.M. Smucker Company is a publicly traded manufacturer of consumer food products including Jif Peanut Butter, Folgers Coffee, Crisco Vegetable Oil, and Uncrustables Sandwiches. The company operates 30 locations across North America and employs more than 7,000 people.

In 2012, the company was scheduled to close its Memphis facility. With the help of the PILOT program, the company instead invested $102,000,000 into its Memphis facilities and now has 139 employees making Jif and other peanut butter related products.

According to the terms of the PILOT, JM Smucker will hire 25 new employees with an average base salary of $43,244 excluding benefits.

EDGE Staff projects $1,462,267 in local total tax revenues to be received during the PILOT term and a $739,855 benefit to JM Smucker.

PILOT Term:

6

Projected New Jobs:

25

Projected Retained Jobs:

Not applicable

Total Jobs:

25

Projected Average Payroll of New Jobs:

$40,227

Projected Average Payroll of Retained Jobs:

Not applicable

Annual New Direct/Indirect Payroll:

$1,556,906

Annual Retained Direct/Indirect Payroll:

Not applicable

Total Capital Investment:

$8,800,000
Real Property Investment:
$3,280,000

Personal Property Investment:
$5,600,000

Community Reinvestment Credit (CRC):
Not applicable

Capital Investment not in PILOT:
Not applicable

Projected Tax Revenue:

$1,462,267

Projected Taxes Abated:

$739,855
City: $323,317 (75%)
County: $416,538 (75%)

Benefit/Cost Ratio:

1.37

Projected MWBE/LOSB Spending:

$585,978

Incentive Provided:

$739,855

Compliance Information

Not applicable

Approved

4/17/2019

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

JM Smucker LLC 2

4740 Burbank Road, Memphis, TN 38118