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Onyx Medical LLC

Project Number: 20180301
Project Type: Expansion
Parcel ID: 08904400360
County Commission District: 5 | City Council District: 1

Summary

Onyx Medical LLC was awarded a nine-year Expansion PILOT to encourage the company to retain 116 jobs, create 30 net new jobs, and invest $10,999,800 at 1800 North Shelby Oaks Drive.

The total project investment includes $300,000 for the purchase of land, $2,500,000 for construction and site improvements, and $4,200,000 for manufacturing machinery. The project was awarded Community Reinvestment Credit for property valued at $3,999,800 ($545,300 for land and $3,454,500 for building).

Onyx Medical will maintain a total of 146 employees with an average salary of $54,939 including overtime and bonus but excluding benefits.

Parcel 08904400360 (1800 North Shelby Oaks Drive) is 4.55 acres and contains a 52,536 square foot manufacturing facility. Parcel 08904400366 (0 North Shelby Oaks Drive) is 2.05 acres and will enable the company to expand its facility by approximately 27,000 additional square feet. New personal property investments and real property is included in the PILOT.

Onyx Medical LLC is a contract manufacturer of precision medical devices headquartered in Memphis, Tennessee. Established in 1990, Onyx provides wires, guide pins, drills and screws for the world’s leading orthopedic companies. Through a new ownership structure, the company now has sister operations in Sweden, Denmark and China. The company is poised to grow once more necessitating a larger facility with new manufacturing equipment.

Staff projects $6,440,266 in local total tax revenues to be received during the PILOT term of this project and an estimated $1,465,053 benefit to Onyx Medical.

PILOT Term:

9

Projected New Jobs:

30

Projected Retained Jobs:

116

Total Jobs:

146

Projected Average Payroll of New Jobs:

$51,621

Projected Average Payroll of Retained Jobs:

$55,797

Annual New Direct/Indirect Payroll:

Not applicable

Annual Retained Direct/Indirect Payroll:

Not applicable

Total Capital Investment:

$10,999,800
Real Property Investment:
$2,800,000

Personal Property Investment:
$4,200,000

Community Reinvestment Credit (CRC):
$3,999,800

Capital Investment not in PILOT:
Not applicable

Projected Tax Revenue:

$6,440,266

Projected Taxes Abated:

$1,465,053
City: $640,228 (75%)
County: $824,825 (75%)

Benefit/Cost Ratio:

4.39

Projected MWBE/LOSB Spending:

$844,758

Incentive Provided:

$1,465,053

Compliance Information

Not applicable

Approved

3/21/2018

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

Onyx Medical LLC

1800 North Shelby Oaks Drive, Memphis, TN 38134