Project Number: 20140601
Project Type: Standard/Basic
Parcel ID: 073037 00052
County Commission District: 11 | City Council District: 3

Summary

RE-CY, LLC was approved for an amendment to its 4-year PILOT to enable the company to invest more than $8 million to move its facility to Memphis and create 36 new jobs.

RE-CY is considering moving its current recycling operation in Searcy, Ark., to a 170,000-square-foot facility at 3970 Delp Road.

In June, the company was awarded a 4-year PILOT to relocate its facility to 611 Winchester Road. According to RE-CY, the agreement to purchase the Winchester facility fell through.

Under the amended PILOT, RE-CY would sign a 10-year lease at 3940 Delp Road, invest $4.8 million in new equipment, $1.4 million in existing equipment and $300,000 in capital improvements. The company will also invest $200,000 in additional equipment not to be abated.

RE-CY, LLC was founded in 2011 to manage unprocessed plastic waste for flexible-packing manufacturers. Today, the company has grown into a full-scale recycling and manufacturing operation with 15 employees processing approximately 20 million pounds of repro resin every year.

This project includes a Community Reinvestment Credit in the amount of $2.2 million, the appraised value of the existing facility purchased by RE-CY. A Community Reinvestment Credit (or CRC) is provided to businesses to encourage investment in existing, vacant facilities in Memphis and Shelby County.

PILOT Term:

4

Projected New Jobs:

36

Projected Retained Jobs:

Not applicable

Total Jobs:

36

Projected Average Payroll of New Jobs:

$40,962

Projected Average Payroll of Retained Jobs:

Not applicable

Annual New Direct/Indirect Payroll:

$16,412,397

Annual Retained Direct/Indirect Payroll:

Not applicable

Total Capital Investment:

$8,935,073
Real Property Investment:
$300,000

Personal Property Investment:
$6,482,321

Community Reinvestment Credit (CRC):
$2,152,752

Capital Investment not in PILOT:
Not applicable

Projected Tax Revenue:

$763,265

Projected Taxes Abated:

$437,199
City: $191,056
County: $246,143

Benefit/Cost Ratio:

1.75

Projected MWBE/LOSB Spending:

$275,625

Incentive Provided:

$437,199

Compliance Information

Not applicable

Approved

9/17/2014

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

Re-Cy, LLC

3970 Delp Street, Memphis, TN 38118