Project Number: 20170201
Project Type: Jobs
Parcel ID: 093405 A00018
County Commission District: 11 | City Council District: 8

Summary

NuVasive, Inc. (“Applicant”) was approved for an eleven-year Jobs PILOT to enable the company to create 15 Net New Jobs. The Applicant will invest $116 million at 4670 East Shelby Drive.

The total project investment includes the $115 million purchase of furniture, fixtures, and computer equipment. Additionally, the Applicant will also invest $700,000 to renovate the 97,800 square-foot East Shelby Drive facility.

The Applicant will create 15 Net New jobs. The average base salary of net new employees is $38,000 excluding benefits.

Parcel 093405 A00018 (4670 East Shelby Drive) is 5.9 acres and contains a facility that is approximately 97,800 square feet.

The Applicant is an innovative medical device company focused on developing minimally disruptive surgical products and procedures for the spine. The Applicant’s mission is to improve the lives of patients who suffer from debilitating back, neck, or leg pain by creating cutting-edge products and procedures that revolutionize spine surgery.
The Applicant had revenues of $811 million in 2015, including sales in more than 30 countries, and employs more than 1,600 people globally.
The Applicant’s Memphis location is a regional office, as well as a regional distribution center.
The Payment-In-Lieu-Of-Tax program will allow the Applicant to remain and expand in Memphis and Shelby County.

The Applicant has projected $155 million capital investment within four (4) years. If the additional $38 million capital investment is met, staff recommends the approval of one (1) additional year for a total of twelve (12) years.

In 2006, the Applicant was awarded a 6-year PILOT that was extended to 8-years. The PILOT approval allowed the Applicant to create 110 net new jobs, invest $1.5 million in real property and $119 million in personal property.

Additionally, 2012, the Applicant was awarded a 10-year PILOT. The PILOT approval allowed the Applicant to create 17 net new jobs, invest $1.5 million in real property, and $119 million in personal property.

Per the Applicant’s 2016 annual reports, they have exceded all capital investment requirements and created 163 net new jobs.

Staff projects $5,050,295 in local total tax revenues to be received during the PILOT term of and a $9,053,864 benefit to the Applicant.

PILOT Term:

11 years

Projected New Jobs:

15

Projected Retained Jobs:

Not applicable

Total Jobs:

15

Projected Average Payroll of New Jobs:

$38,000

Projected Average Payroll of Retained Jobs:

Not applicable

Annual New Direct/Indirect Payroll:

$570,000

Annual Retained Direct/Indirect Payroll:

Not applicable

Total Capital Investment:

$116,402,606
Real Property Investment:
$668,885

Personal Property Investment:
$115,733,721

Community Reinvestment Credit (CRC):
Not applicable

Capital Investment not in PILOT:
Not applicable

Projected Tax Revenue:

$5,050,295

Projected Taxes Abated:

$9,053,863
City: $3,956,538 (75%)
County: $5,097,325 (75%)

Benefit/Cost Ratio:

.56

Projected MWBE/LOSB Spending:

$637,065

Incentive Provided:

$9,053,864

Compliance Information

Not applicable

Approved

2/15/2017

Ramp up Period

3 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

NuVasive, Inc.

4670 East Shelby Drive, Memphis, TN 38118