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W.M. Barr & Company, Inc.

Project Number: 20160901
Project Type: Expansion
Parcel ID: 050113 0015c
County Commission District: 9 | City Council District: 6

Summary

W.M. Barr & Company, Inc. (“Applicant”) is seeking a nine-year Expansion PILOT to enable the company to retain 179 jobs in the City of Memphis and add 40 net new jobs to the company’s Presidents Island facilities located at 2105 Channel Avenue, 2121 Channel Avenue and 2210 Buoy. Total project investment is $12 million, including $10 million in manufacturing machinery, equipment and personal property along with $2 million in real property improvements. The Applicant will add 10,000 square feet of manufacturing space at 2105 Channel Avenue.

The Applicant will retain 179 employees averaging $55,672 a year and hire 40 new staff averaging $39,944. The average base salary with expected overtime for all 219 employees will be $52,800, excluding benefits.

The Applicant will invest $2 million to upgrade all three facilities with the majority going toward removal of an obsolete tank yard, renovating the blast-proof batching area and expanding the building at 2105 Channel Avenue by 10,000 square feet. The applicant will invest $10 million in new manufacturing equipment and conveyor systems.

2105 Channel Avenue (050113 00015C) is 11.25 acres and contains a 130,089 square foot manufacturing facility. 2121 Channel Avenue (050113 00006C) is 16.87 acres and contains a 204,310 square foot distribution facility. 2210 Bouy (050102 00044) is 3.79 acres and contains a 79,740 square foot manufacturing facility. Real property and personal property investments to be included in the PILOT will be made at all three Presidents Island properties.

Founded in 1946 by William M. Barr, the company has grown to become a leader in specialty cleaning and home improvement products that are sold in more than 40,000 stores in all 50 states. This Memphis-based company manufactures paint removers, solvents and household cleaning products including Klean Strip, Damp Rid, Goof Off and Home Armor. The Applicant and its sister company, Microban International, employ over 300 people worldwide. The headquarters is located at 6750 Lenox Center in Memphis.

The company has outsourced production and packaging of several consumer goods due to capacity and efficiency constraints at the existing Memphis facilities. Significant investments in manufacturing equipment and building improvements are needed to bring this activity to Memphis. The Payment-In-Lieu-Of-Tax program will allow the Applicant to upgrade facilities, add jobs and increase production.

Staff projects $8,845,322 in local total tax revenues to be received during the PILOT term of this project and a $1,117,131 benefit to the applicant.

When complete, these redesigned facilities will have reduced 1,500 feet of conveyors to just 500 feet, improved plant efficiencies and increased local employment from 179 to 219 jobs. This will allow the company to bring production back from China and to ship more than one million units per week from their Memphis operation.

PILOT Term:

9

Projected New Jobs:

40

Projected Retained Jobs:

179

Total Jobs:

219

Projected Average Payroll of New Jobs:

$39,944

Projected Average Payroll of Retained Jobs:

$55,672

Annual New Direct/Indirect Payroll:

$1,597,760

Annual Retained Direct/Indirect Payroll:

$9,965,288

Total Capital Investment:

$12,000,000
Real Property Investment:
$2,000,000

Personal Property Investment:
$10,000,000

Community Reinvestment Credit (CRC):
Not applicable

Capital Investment not in PILOT:
Not applicable

Projected Tax Revenue:

$8,845,322

Projected Taxes Abated:

$1,117,131
City: $488,835 (75%)
County: $628,296 (75%)

Benefit/Cost Ratio:

7.92

Projected MWBE/LOSB Spending:

$597,815

Incentive Provided:

$1,117,131

Compliance Information

Not applicable

Approved

9/21/2016

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

W.M. Barr & Company, Inc.

2105 Channel Avenue, Memphis , TN 38106