Project Number: 20190501
Pilot Type: Community Builder
Status: Approved
Parcel ID: 077017 00003
County Commission District: 09 | City Council District: 06 08

Summary

Pandrol USA was awarded a 15-year Community Builder PILOT. For the terms of the PILOT, Pandrol will create and maintain a total of 73 employees with an average salary of $49,453 excluding benefits. The company will invest $9,291,200 in the facility located at 611 Winchester Road. After intensive environmental remediation and site work, the company will locate its North American headquarters to Memphis and launch a manufacturing operation at the facility.

The building, located adjacent to a residential community, is in need of substantial renovation and environmental mitigation. The qualified Census Tract has a 28.1% poverty rate and an unemployment rate of 11.2% (compared to 4.9% for Memphis and 4.4% for Shelby County). Financial assistance is needed to help expand the local economy, spark investment, and create jobs in an economically distressed area. Additionally, removal of blight and improvement of the overall neighborhood quality of life is consistent with the Community Builder PILOT policies. Pandrol USA proposes to remediate the 20-acre project site and renovate the 233,000 SF building situated on the property.

With global headquarters in France and the North American headquarters currently located in New Jersey, Pandrol USA manufactures and installs rail fastening products such as railroad clips, crosstie plates and screw spikes. The parent company operates 17 related companies around the globe and has 1,700 total employees. Pandrol USA (known as Pandrol North America) has 11 offices and four manufacturing facilities throughout the United States, Canada and Mexico. Due to growth in this highly competitive industry, Pandrol USA is looking for another manufacturing facility and a corporate location closer to its customers.

PILOT Term:

15

Projected New Jobs:

73

Projected Retained Jobs:

Not applicable

Total Jobs:

73

Projected Average Payroll of New Jobs:

$49,453

Projected Average Payroll of Retained Jobs:

Not applicable

Annual New Direct/Indirect Payroll:

$5,033,569

Annual Retained Direct/Indirect Payroll:

Not applicable

Total Capital Investment:

$9,291,200
Real Property Investment:
$2,950,000

Personal Property Investment:
$5,300,000

Community Reinvestment Credit (CRC):
$1,041,200

Capital Investment not in PILOT:
Not applicable

Projected Tax Revenue:

$5,098,567

Projected Taxes Abated:

$1,526,910
City: $667,260 (75%)
County: $859,650 (75%)

Benefit/Cost Ratio:

3.34

Projected MWBE/LOSB Spending:

$966,537

Incentive Provided:

$1,526,910

Compliance Information

Not applicable

Approved

5/15/2019

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

Pandrol USA

611 Winchester Road, Memphis, TN 38116