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LEDIC Management Group, LLC

Project Number: 20151101
Project Type: Standard/Basic
Parcel ID: # 057012 00027
County Commission District: | City Council District:

Summary

LEDIC Management Group, LLC (“Applicant”) was awarded a 5-year Basic PILOT to enable the company to add 70 net new jobs in addition to its 229 employees currently located in Memphis, Tennessee. The Applicant will invest more than $12.1 million at a new 91,056 square foot facility located at 555 S. Perkins, 58,000 square feet of which the company will occupy.

Staff recommends that (i) one additional year be added to the PILOT terms as a result of the Applicant’s diversity plan significantly exceeding diversity goals of the Board; (ii) one additional year be added to the PILOT for the participation in the prisoner reentry program; and (iii) one additional year be added to the PILOT for the participation in the Green Initiatives program by constructing a silver LEED certified building. Staff recommends a total PILOT of five (5) years with the ability to earn three (3) additional years through these special considerations.

In addition, LEDIC Management Group, LLC has projected 181 net new jobs within five (5) years. If the additional jobs threshold is met, staff recommends the approval of 2 additional years for a total PILOT term of ten (10) years. With the additional two (2) years and 111
net new jobs, the benefit to cost ratio will be 9.54.

The Applicant will invest $2,300,000 in real property improvements and $2,200,000 in
personal property at 555 S. Perkins.

The applicant will invest $6,400,000 to purchase the S. Perkins location and $50,000 in soft
costs.

The Applicant will receive $1,229,020 in Community Reinvestment Credit (CRC) for the S. Perkins location, for a total capital investment of $12,179,020.

The average salary of the 70 net new employees will be $42,491.

The project will create $1,668,602 in new tax revenue for Memphis and Shelby County and has a benefit to cost ratio of $3.93 in new tax revenue for every $1 of taxes abated.

The average salary of the additional 111 employees will be $45,272.

The new facility will allow the Applicant to grow and expand in Memphis and Shelby County.

PILOT Term:

5 year

Projected New Jobs:

70

Projected Retained Jobs:

Not applicable

Total Jobs:

70

Projected Average Payroll of New Jobs:

$42,491

Projected Average Payroll of Retained Jobs:

Not applicable

Annual New Direct/Indirect Payroll:

$3,803,800

Annual Retained Direct/Indirect Payroll:

Not applicable

Total Capital Investment:

$12,129,020
Real Property Investment:
$2,300,000

Personal Property Investment:
$2,200,000

Community Reinvestment Credit (CRC):
$6,450,000

Capital Investment not in PILOT:
$1,229,020

Projected Tax Revenue:

$1,668,602

Projected Taxes Abated:

$423,305
City: $184,984
County: $238,321

Benefit/Cost Ratio:

3.93

Projected MWBE/LOSB Spending:

$4,000,000

Incentive Provided:

$423,305

Compliance Information

Not applicable

Approved

11/18/2015

Ramp up Period

2 years

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

LEDIC Management Group, LLC

555 S Perkins Road, Memphis, TN 38117