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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:

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

United Parcel Service, Inc. 2

3675 New Swinnea Road, Memphis, TN 38118