Project Number: 20150801
Pilot Type: Retention
Parcel ID: 094100 00292 / 093400 00506
County Commission District: 11 | City Council District: 3

Summary

Solae LLC was approved for an 11-year retention PILOT to enable the company to retain 276 jobs and invest more than $20 million at their 4272 S. Mendenhall Road and 5605 Holmescrest facilities.

Solae will invest $250,000 in real property improvements at its warehouse located at 5605 Holmescrest and $20,000,000 in personal property improvements at 4272 S. Mendenhall.

In addition, Solae will receive $12,356,579 in Community Reinvestment Credit (CRC) for the use of 53 percent (469,050 SF) of the Holmescrest warehouse, for a total capital investment of $32,606,579.

The average annual salary of the 276 retained employees is $62,961. The project will create $18,866,877 in new tax revenue for Memphis and Shelby County, and has a benefit to cost ratio of $3.85 of new tax revenue for every $1 of taxes abated.

The PILOT will enable Solae to reduce overhead cost and improve competitive position in the global market. Manufacturing costs determine whether to maintain or expand business and employment versus other Solae LLC. plant sites globally.

The retention PILOT will allow for expansion and future growth within Memphis and Shelby County.

Founded in 1958, Solae, LLC develops food, feed and industrial ingredients focusing on soy. Solae ingredients are used in more than 80 percent of all clinical research on soy protein. Solae was formed as a joint venture between DuPont and Bunge Limited. On May 1, 2012, Solae announced that DuPont had acquired Bunge's 28% share, thus taking full ownership of the company. Solae, LLC’s local plant product is sold globally and is in many mainstay consumer foods. Additionally, Solae’s product is the base for baby formula for infants that are lactose intolerant.

PILOT Term:

11

Projected New Jobs:

Not applicable

Projected Retained Jobs:

276

Total Jobs:

276

Projected Average Payroll of New Jobs:

Not applicable

Projected Average Payroll of Retained Jobs:

$62,961

Annual New Direct/Indirect Payroll:

$17,377,236

Annual Retained Direct/Indirect Payroll:

Not applicable

Total Capital Investment:

$32,606,579
Real Property Investment:
$250,000

Personal Property Investment:
$20,000,000

Community Reinvestment Credit (CRC):
$12,356,579

Capital Investment not in PILOT:
Not applicable

Projected Tax Revenue:

$18,866,887

Projected Taxes Abated:

$4,906,481
City: $2,144,132 (80%)
County: $2,762,349 (75%)

Benefit/Cost Ratio:

3.85

Projected MWBE/LOSB Spending:

$12,562,500

Incentive Provided:

$4,906,481

Compliance Information

Not applicable

Approved

8/19/2015

Ramp up Period

2 years

Closing

12/31/2015 (Real)
12/31/2016 (Personal)

Effective

12/31/2015

Lease Begins

12/31/2015 (Real)
12/31/2016 (Personal)

Lease Expires

3/31/2025 (Real)
12/31/2028 (Personal)

Amended

Not applicable

Property Details

Lease Began

12/31/2015 (Real)
12/31/2016 (Personal)

Lease Expires

3/31/2025 (Real)
12/31/2028 (Personal)

Solae, LLC

4272 South Mendenhall Road, Memphis, TN 38141