‹ Back To Pilot Programs

Sedgwick Claims Managment Services, Inc.

Project Number: 20170202
Project Type: Expansion
Parcel ID: 081092 00002
County Commission District: | City Council District:

Summary

Sedgwick Claims Management Services, Inc. (“Applicant”) was approved for a fifteen-year Expansion PILOT to enable the company to retain 865 jobs and create 130 net new jobs. The Applicant will invest $33 million at 8155 T&B Boulevard.

The total project investment includes the $5 million purchase of furniture, fixtures, and computer equipment. Additionally, the Applicant will invest $10.4 million to renovate the 245,808 square-foot T&B facility.

The Applicant will receive $18.1 million in Community Reinvestment Credit “CRC”.

The weighted average base salary of 995 retained and net new employees is $63,872 excluding benefits.

Parcel 081092 00002 (8155 T&B Blvd.) is 11.1 acres and contains a facility that is approximately 245,808 square feet.

Founded in 1969, the Applicant delivers cost-effective claims, productivity, managed care and other services. The Applicant facilitates customers’ and consumers’ financial and personal health through services for workers’ benefits.

The Applicant has experienced growth across the past six-years through acquisitions and organically increasing its worldwide employee numbers from 6,500 to 15,000. The Applicant’s headquarters is located in Memphis and Shelby County.

Currently, the Applicant is operating out of 2 different locations: a corporate office location department and a second location that is primilary an operation hub. The Expansion PILOT will allow for the consolidation and expansion of both offices to one facility at 8155 T&B Boulevard.

The Applicant will upgrade and improve the T&B facility to a state-of-the-art global headquarters.

Staff projects $72,320,382 in local total tax revenues to be received during the PILOT term and a $10,432,101 benefit to the Applicant.

PILOT Term:

15 years

Projected New Jobs:

130

Projected Retained Jobs:

865

Total Jobs:

995

Projected Average Payroll of New Jobs:

$38,126

Projected Average Payroll of Retained Jobs:

$68,643

Annual New Direct/Indirect Payroll:

$4,956,380

Annual Retained Direct/Indirect Payroll:

$49,376,195

Total Capital Investment:

$33,538,400
Real Property Investment:
$10,400,000

Personal Property Investment:
$5,000,000

Community Reinvestment Credit (CRC):
$18,100,000

Capital Investment not in PILOT:
Not applicable

Projected Tax Revenue:

$72,320,382

Projected Taxes Abated:

$10,432,100
City: $4,558,828 (75%)
County: $5,873,272 (75%)

Benefit/Cost Ratio:

6.93

Projected MWBE/LOSB Spending:

$4,164,815

Incentive Provided:

$10,432,101

Compliance Information

Not applicable

Approved

2/24/2017

Ramp up Period

3 years

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

Sedgwick Claims Managment Services, Inc.

8155 T and B Boulevard, Memphis, TN 38125