Project Number: 20171003
Project Type: Expansion
Parcel ID: 08002400025
County Commission District: 08 | City Council District: 02

Summary

Pfizer Inc. was awarded a fourteen-year Expansion PILOT to enable the company to remain in Memphis and retain 250 jobs. Pfizer will invest $19.6 million at 949 S. Shady Grove Road.

The total project investment includes the $2.9 million purchase of furniture, fixtures, and computer equipment. Additionally, Pfizer will invest $4.7 million for tenant improvements at the Shady Grove location. The applicant will receive CRC in the amount of $11.9 million.

The average base salary for the 250 corporate administrative support staff is $88,776 excluding benefits.

Parcel 080024 00025 (949 S. Shady Grove Road) is 7.3 acres and is comprised of a 155,000 square-foot office building.

Founded in 1849, Pfizer is the world’s largest biopharmaceutical company and is currently 54th on the Fortune list of largest publicly traded companies. Pfizer manufactures products such as: Lipitor, Celebrex, Norvasc, Lyrica, and Viagra.

The Expansion PILOT will enable Pfizer to reduce overhead costs and improve its competitive position in the global market.

In 1994, Pfizer constructed a 300,000-square foot distribution and office facility on Shelby Drive in Memphis, Tennessee.

In 1997, Pfizer brought their North American Shared Services back office operations to Memphis. Now known as Global Financial Services, that operation leases space at 6730 Lenox Center. The Lenox Center lease will soon expire.

Staff projects $17,081,312 in local total tax revenues to be received during the PILOT term and a $5,299,048 benefit to Pfizer.

PILOT Term:

14

Projected New Jobs:

Not applicable

Projected Retained Jobs:

250

Total Jobs:

250

Projected Average Payroll of New Jobs:

Not applicable

Projected Average Payroll of Retained Jobs:

$88,776

Annual New Direct/Indirect Payroll:

Not applicable

Annual Retained Direct/Indirect Payroll:

$22,194,000

Total Capital Investment:

$19,684,661
Real Property Investment:
$4,748,575

Personal Property Investment:
$2,992,000

Community Reinvestment Credit (CRC):
$11,944,086

Capital Investment not in PILOT:
Not applicable

Projected Tax Revenue:

$17,081,312

Projected Taxes Abated:

$5,299,048
City: $2,315,684 (75%)
County: $2,983,364 (75%)

Benefit/Cost Ratio:

3.22

Projected MWBE/LOSB Spending:

$1,982,001

Incentive Provided:

$5,299,048

Compliance Information

Not applicable

Approved

10/18/2017

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

Pfizer Inc.

949 South Shady Grove, Memphis, TN 38120