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Nucor Steel Memphis, Inc.

Project Number: 20170402
Pilot Type: Jobs
Status: Approved
Parcel ID: 050102 00039C
County Commission District: 09 | City Council District: 06

Summary

Nucor Steel Memphis, Inc. was awarded a five-year Jobs PILOT to encourage the company to create 15 Net New jobs. Nucor Steel Memphis will invest $8.1million at 2315 Pier Street, Memphis, Tennessee.

The total project investment includes the $6.1 million purchase of furniture, fixtures, and computer equipment, $1.35 million to purchase the Pier Street facility and an additional $300,000 to purchase the land. The land purchase will not be abated. Additionally, Nucor Steel Memphis will invest $350,000 to renovate the 106,853 square-foot Pier Street facility.

Nucor Steel Memphis will receive Community Reinvestment Credit “CRC.”

The weighted average base salary of 15 Net New employees is $56,333 excluding benefits.

Parcel 050102 00039C (2315 Pier Street) is 5.5 acres and contains a facility that is approximately 106,853 square feet. The Applicant will upgrade and improve the Pier Street Facility

Nucor Steel Memphis is a wholly-owned subsidiary of Nucor Corporation. Nucor Corporation and its affiliates manufacture steel products with operating facilities primarily in the U.S and Canada. The products offered include carbon and alloy steel—in bars, beams, sheets.

Presently, Nucor Steel Memphis is a special bar quality mill. As a special bar quality mill, Nucor Steel Memphis produces steel to a customer’s specifications. Nucor Steel Memphis plans to expand operations by offering additional value added services to its steel manufacturing. Such services include: boring, cut-to-length, polishing, grinding, turning and straightening of steel. Currently, these services are being outsourced to a group outside Memphis and Shelby County.

In 2006, Nucor Steel Memphis was awarded a six-year real property PILOT and a 15-year personal Property PILOT. The PILOT approval allowed the Applicant to create 225 Net New jobs, invest $11.75 million in real property and $230 million in personal property at its facility located at 3601 Riverport Road, Memphis, Tennessee.

In 2012, Nucor Steel Memphis was awarded a 15-year Retention PILOT. The PILOT approval encouraged Nucor Steel Memphis to retain 398 jobs, create 27 Net New jobs and invest $10 million in real property, and $103 million in personal property at its facility located at 3601 Riverport Road, Memphis, Tennessee.

Per Nucor Steel's 2016 annual reports, the company has exceeded all capital investment requirements and created or retained 425 Net New jobs.

Staff projects $595,493 in local total tax revenues to be received during the PILOT term and a $532,993 benefit to the company.

PILOT Term:

5

Projected New Jobs:

15

Projected Retained Jobs:

Not applicable

Total Jobs:

15

Projected Average Payroll of New Jobs:

$56,333

Projected Average Payroll of Retained Jobs:

Not applicable

Annual New Direct/Indirect Payroll:

$844,995

Annual Retained Direct/Indirect Payroll:

Not applicable

Total Capital Investment:

$8,100,000
Real Property Investment:
$1,700,000

Personal Property Investment:
$6,100,000

Community Reinvestment Credit (CRC):
Not applicable

Capital Investment not in PILOT:
$300,000

Projected Tax Revenue:

$595,493

Projected Taxes Abated:

$532,993
City: $232,918 (75%)
County: $300,075 (75%)

Benefit/Cost Ratio:

1.12

Projected MWBE/LOSB Spending:

$133,963

Incentive Provided:

$532,993

Compliance Information

Not applicable

Approved

4/19/2017

Ramp up Period

2

Closing

12/31/2018 (Personal)

Effective

12/31/2018

Lease Begins

12/31/2018 (Personal)

Lease Expires

12/31/2023 (Personal)

Amended

Not applicable

Property Details

Lease Began

12/31/2018 (Personal)

Lease Expires

12/31/2023 (Personal)

Nucor Steel Memphis, Inc.

2315 Pier Street, Memphis , TN 38106