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Pristex Soultions, LLC

Project Number: 20201001
Pilot Type: Jobs
Status: Approved
Parcel ID: 073101 00814
County Commission District: | City Council District:

Summary

Pristex Solutions, LLC (“Applicant”) was approved for a 13-year Jobs PILOT to enable the company to create 439 Net New Jobs with an average wage of $34,644 and invest $11,608,422 at 4259 Delp Street in Memphis, Tennessee.

The total project investment includes construction costs of $2,008,600 and new personal property of $7,254,222. Community Reinvestment Credit has been requested for the value of the vacant space to be occupied ($297,300 land and $2,048,300 building).
Parcel 073101 00814 (4259 Delp Street) is 7.6 acres and contains a 151,200 square foot building. The Applicant will occupy the entire building. Both real property improvements and new personal property will be included in the PILOT.

Pristex Solutions is being created to directly serve Pristex Medical. Pristex Medical was launched in May by Gabe Velasquez and Kyle Wallgren to connect Personal Protective Equipment (PPE) manufacturers with high volume buyers such as healthcare groups, governmental entities, and large distributors. Their goal was simply to help move products from warehouses to hospitals. But now, with long-term contracts in place with a diverse array of purchasers, revenue of more than $631,000 per month, and a continuing shortage of necessary product, the company needs increased manufacturing capacity.

Pristex Solutions is being formed to fill this need for additional manufacturing. The ownership is evaluating locations in Texas, Mississippi and Tennessee for a facility that will produce commercial and household cleaning products and disinfecting wipes. The facility will have initial production capacity of approximately three million units (canisters) per month.

The location produces $67,985 today in City of Memphis and Shelby County property taxes annually. Estimated annual property taxes will be $47,333 during the PILOT term and $144,017 after. Staff projects $28,537,950 in total local tax revenues to be received during the PILOT term of this project and a $1,509,925 benefit to the Applicant.

PILOT Term:

13

Projected New Jobs:

439

Projected Retained Jobs:

Not applicable

Total Jobs:

439

Projected Average Payroll of New Jobs:

$34,644

Projected Average Payroll of Retained Jobs:

Not applicable

Annual New Direct Payroll:

$15,208,716

Annual Retained Direct Payroll:

Not applicable

Total Capital Investment:

$11,608,422
Real Property Investment:
$1,826,000

Personal Property Investment:
$5,315,000

Community Reinvestment Credit (CRC):
$2,121,822

Capital Investment not in PILOT:
$439

Projected Tax Revenue:

$28,537,950

Projected Taxes Abated:

$1,509,925
City: $665,986
County: $843,939

Benefit/Cost Ratio:

18.90

Projected MWBE/LOSB Spending:

$682,989

Incentive Provided:

$1,509,925

Compliance Information

Not applicable

Approved

10/21/2020

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

Pristex Soultions, LLC

4259 Delp Street, Memphis, TN 38118