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United Parcel Service, Inc. 2
Project Number: 20200102
Pilot Type: Jobs
Status: Approved
Parcel ID: TBD
County Commission District: | City Council District:
Pilot Type: Jobs
Status: Approved
Parcel ID: TBD
County Commission District: | City Council District:
Summary
United Parcel Service, Inc. was approved for a 15-year Jobs PILOT to enable the company to create 25 Net New Jobs with an average wage of $47,840 and invest $216,600,000 in the City of Memphis at 3675 New Swinnea Road.United Parcel Service, Inc. (UPS) currently benefits from a 15-year PILOT Term approved by EDGE in 2013. The project has exceeded commitments with 1,397 existing employees earning more than $63,000 annually and $93,222,464 in total capital investment. The company has already exceeded 100% of its overall Diversity commitment by spending $8,823,714 with City of Memphis and Shelby County certified Minority and Woman Owned Business Enterprises.
The following request is for a new PILOT to help facilitate construction of new combined air and ground sort facility. The total project investment includes an estimated $81,600,000 in new construction and site improvements and $135,000,000 in new personal property.
This project is part of the 3675 New Swinnea Road complex on land owned by Memphis International Airport and leased to UPS. A new Real Property Improvement Parcel Identification Number will be created to identify the new 268,000 square foot building for both taxing and PILOT purposes. Only Real Property improvements associated with the new building construction project and related leasehold improvements identified by the new Parcel Identification Number will be included in this PILOT. New Personal Property located throughout the facility associated with the new Parcel Number, Parcel 060-176-00383L and Parcel 060-186-00008L will be included in the PILOT.
Founded in 1907 as a messenger company, UPS has grown into a global, publicly traded corporation with 2018 revenues of $71.86 billion. The company operates a combination air sort and ground sort hub in Memphis employing more than 1,300 people. This facility serves both the Greater Memphis Region and all U.S. destinations due to Memphis’ unique third-party logistics infrastructure.
In order to improve its delivery network and contain costs, UPS would like to expand its Memphis operation. This expansion will include a new automated parcel handling facility that will help build capacity and increase their competitiveness in the market.
PILOT Term:
15
Projected New Jobs:
25
Projected Retained Jobs:
Not applicable
Total Jobs:
25
Projected Average Payroll of New Jobs:
$47,840
Projected Average Payroll of Retained Jobs:
Not applicable
Annual New Direct Payroll:
$1,196,000
Annual Retained Direct Payroll:
Not applicable
Total Capital Investment:
$216,600,000
Real Property Investment:
$81,600,000
Personal Property Investment:
$135,000,000
Community Reinvestment Credit (CRC):
Not applicable
Capital Investment not in PILOT:
Not applicable
Projected Tax Revenue:
$17,569,327
Projected Taxes Abated:
$38,030,293
City:
$16,774,024
County:
$21,256,269
Benefit/Cost Ratio:
0.46
Projected MWBE/LOSB Spending:
$26,104,544
Incentive Provided:
$38,030,293
Compliance Information
Not applicable
Approved
1/15/2020
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