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Alphatec Spine, Inc.

Project Number: 20210302
Pilot Type: Fast Track
Status: Approved
Parcel ID: 074101 00029
County Commission District: 11 | City Council District: 03, 09

Summary

Alphatec Spine, Inc. (“Applicant”) was approved for a 10-year Fast Track PILOT to enable the company to build-out space at 4101 Willow Lake Boulevard, create 95 Net New Jobs with an average wage of $52,657, invest $3,500,000 in the project, and Community Reinvestment Credit will be awarded.

Parcel 074101 00029 (4101 Willow Lake) is 4.407 acres and contains a 75,000 square foot flex warehouse. The Applicant will occupy 100% of the building. Real property improvements and new personal property will receive PILOT benefit.

Alphatec is a medical device company that develops products and treatments for spine disorders. Founded in 1990, the publicly traded Carlsbad, California based company has grown to more than $140 million in annual revenue and employs more than 300 people. Alphatec specializes in spinal implants, biologics, and fixation devices.

Alphatec has developed a plan to substantially expand production. They have been evaluating locations for a new distribution and repair operation as part of this expansion. The company has considered expanding in its home state of California but would like to be located in the Central United States, in an area near strong logistics partners, and with access to talent experienced in medical device repair and distribution. Alphatec has narrowed its list to Memphis and North Mississippi. The company intends to choose Memphis if approved.

The property to be occupied currently produces $21,994 in City of Memphis and Shelby County property taxes annually. Estimated annual property taxes will average $25,118 during the PILOT term and $74,164 after. Staff projects $4,617,110 in total local tax revenues to be received during the PILOT term of this project and a $585,680 benefit to the Applicant.

PILOT Term:

10

Projected New Jobs:

95

Projected Retained Jobs:

Not applicable

Total Jobs:

95

Projected Average Payroll of New Jobs:

$52,657

Projected Average Payroll of Retained Jobs:

Not applicable

Annual New Direct Payroll:

$5,002,415

Annual Retained Direct Payroll:

Not applicable

Total Capital Investment:

$3,500,000
Real Property Investment:
$1,500,000

Personal Property Investment:
$2,000,000

Community Reinvestment Credit (CRC):
Not applicable

Capital Investment not in PILOT:
Not applicable

Projected Tax Revenue:

$4,617,110

Projected Taxes Abated:

$585,680
City: $258,328
County: $327,352

Benefit/Cost Ratio:

7.88

Projected MWBE/LOSB Spending:

$462,852

Incentive Provided:

$585,680

Compliance Information

Not applicable

Approved

3/17/2021

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

Alphatec Spine, Inc.

4101 Willow Lake Boulevard, Memphis, TN 38118