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JNJ Logistics LLC

Project Number: 20180701
Project Type: Expansion
Parcel ID: 07400100243 074001B00018 074001B00019 074001B00017
County Commission District: 11 | City Council District: 03, 08

Summary

JNJ Logistics LLC was awarded a 15-year Expansion PILOT to encourage the company to invest $20.5 million at 5000 and 5050 American Way, retain 290 existing employees, and create 222 new jobs with an average salary of $65,410.

JNJ Logistics is a transportation provider founded in Memphis in 1992. Today, the company provides brokerage services, shuttling and just-in-time delivery services in 48 states. They operate terminals in Georgia and Florida and are pursuing locations west of the Mississippi. JNJ Logistics operates a fleet of more than 450 trucks on the road serving customers such as FedEx, Amazon, UPS, Walmart, PepsiCo, Nestle, Frito Lay, Dillards, Bed Bath & Beyond, and McKesson.

The company has outgrown its current facility and is exploring options in the Mid-South region for relocation of its corporate headquarters, operations center, vehicle maintenance facility and on-site warehouse with cross-dock. This PILOT will help JNJ Logistics redevelop the Delta Square Shopping Center site that has been vacant for more than ten years. JNJ Logistics has proposed a major renovation of the site into a multi-functional complex, housing its large fleet of vehicles, 151 management, accounting and information technology employees, 36 maintenance and warehouse employees and more than 325 Memphis-based truck drivers.

EDGE Staff projects $35,595,269 in local total tax revenues to be received during the PILOT term and an estimated $5,855,123 benefit to JNJ Logistics.


PILOT Term:

15

Projected New Jobs:

290

Projected Retained Jobs:

222

Total Jobs:

512

Projected Average Payroll of New Jobs:

$65,410

Projected Average Payroll of Retained Jobs:

$65,410

Annual New Direct/Indirect Payroll:

$23,142,000

Annual Retained Direct/Indirect Payroll:

$17,715,600

Total Capital Investment:

$20,575,000
Real Property Investment:
$18,850,000

Personal Property Investment:
$1,725,000

Community Reinvestment Credit (CRC):
Not applicable

Capital Investment not in PILOT:
Not applicable

Projected Tax Revenue:

$35,595,269

Projected Taxes Abated:

$5,855,123
City: $2,558,689 (75%)
County: $3,296,434 (75%)

Benefit/Cost Ratio:

6.08

Projected MWBE/LOSB Spending:

$5,090,769

Incentive Provided:

$5,855,123

Compliance Information

Not applicable

Approved

7/25/2018

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

JNJ Logistics LLC

5000 American Way, 5050 American Way Memphis, TN 38115