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Ampro Industries, Inc.

Project Number: 20200502
Pilot Type: Jobs
Status: Approved
Parcel ID: 071001 00072, 071001 00046
County Commission District: 6 | City Council District: 7, 8

Summary

Ampro Industries, Inc. (“Applicant”) is seeking a 6-year Jobs PILOT to enable the company to create 36 Net New Jobs with an average base salary of $32,170 and invest $30,000,000 for new manufacturing machinery in the City of Memphis at 4171 Steele and 4183-4185 Steele.

The total project investment includes $4,000,000 for the building purchase, $15,000,000 for construction and renovations, and $11,000,000 for new personal property. Community Reinvestment Credit will be awarded.

Parcel 071001 00072 (4171 Steele Street) is 4.64 acres with an existing 42,964 square foot manufacturing facility. Only new personal property at the site will be included in the PILOT. This is Phase One of the project with the ramp-up period beginning when the first PILOT Lease was closed. The allotment for personal property under Phase One shall be $6,000,000.

Parcel 071001 00046 (4183-4185 Steele Street) is 10.81 acres with an existing 220,514 square foot warehouse. Both real property and new personal property at the site will be included in the PILOT. This is Phase Two of the project and will be awarded a two-year initiation period from date of approval of this Amended and Restated Term Sheet, with the two-year ramp-up period for Phase Two beginning when the real property PILOT Lease is closed.


Ampro is a manufacturer of personal care products for both the consumer and professional hair-styling markets. The Memphis-based company founded in 1947 has grown to 59 total employees and annual revenues of $24 million. Ampro has more than 100 distribution partners shipping to retailers around the world including Walmart, Kroger, Walgreens, and CVS, in addition to beauty supply stores. The company ships more than six full truckloads of Ampro Pro Style, Shine ‘N Jam and other hair care products each day.

The company has been successfully developing new product lines and expanding markets. Increased demand has pushed production to its limit with current manufacturing infrastructure. This new investment will allow for modernization of old production lines and installation of new production lines within the existing facility to create new capacity. As a result, Ampro expects to double its production speed. The additional capacity will allow the company to remain in its Frayser plant.

The property currently produces $55,388 in City of Memphis and Shelby County property taxes annually. Estimated annual property taxes will average $174,843 during the PILOT term and $598,520 after. Staff projects $2,312,813 in total local tax revenues to be received during the PILOT term of this project and a $3,065,725 benefit to the Applicant.

PILOT Term:

6 Years

Projected New Jobs:

36

Projected Retained Jobs:

Not applicable

Total Jobs:

36

Projected Average Payroll of New Jobs:

$32,170

Projected Average Payroll of Retained Jobs:

Not applicable

Annual New Direct Payroll:

$1,158,120

Annual Retained Direct Payroll:

Not applicable

Total Capital Investment:

$30,000,000
Real Property Investment:
$19,000,000

Personal Property Investment:
$11,000,000

Community Reinvestment Credit (CRC):
Not applicable

Capital Investment not in PILOT:
Not applicable

Projected Tax Revenue:

$2,312,813

Projected Taxes Abated:

$3,895,364
City: $2,181,839 (75%)
County: $1,713,525 (75%)

Benefit/Cost Ratio:

0.75

Projected MWBE/LOSB Spending:

$4,209,859

Incentive Provided:

$3,065,725

Compliance Information

Not applicable

Approved

5/20/2020

Ramp up Period

2 Years

Closing

12/31/2020 (Personal)

Effective

12/31/2020

Lease Begins

12/31/2020 (Personal)

Lease Expires

12/31/2024 (Personal)

Amended

5/19/2021

Property Details

Lease Began

12/31/2020 (Personal)

Lease Expires

12/31/2024 (Personal)

Ampro Industries, Inc.

4171 Steele Street, Memphis, TN 38127