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AutoZone Parts Inc.

Project Number: 20190601
Pilot Type: Jobs
Status: Approved
Parcel ID: 002042 00021, 002042 0020, 002042 0019, 002044 00004C
County Commission District: 08 | City Council District: 06, 08

Summary

The project was Amended and Restated December 18, 2019, to reflect an increase in construction costs from $3,100,000 to $9,004,500.

AutoZone Parts Inc. (“Applicant”) was awarded a fifteen-year Jobs PILOT to enable the company to create 130 Net New Jobs with an average base salary of $80,439 excluding benefits, and invest $151,393,460 in the City of Memphis.

The total project investment includes current real property value of $2,916,800, $9,004,500 for renovations to 100-110 South Front, and $139,472,160 for new personal property to be located at both 100-110 South Front Street and 123 South Front Street.

Parcel 002042 00021 (100 S. Front) is 0.156 acres. Parcel 002042 00020 (104 S. Front) is 0.160 acres with a 26,714 square foot building constructed in 1880. Parcel 002042 00019 (110 S. Front) is 0.202 acres with a 30,000 square foot building constructed in 1880. Both real property and new personal property at these contiguous locations will be included in the PILOT, and Community Reinvestment Credit has been requested. In addition, new personal property investments related to the project and made at parcel 002044 00004C (123 S. Front) will be included in the PILOT.

AutoZone is the nation’s leading retailer and distributor of automotive replacement parts and accessories. Founded in 1979, the Memphis based company has grown to 6,202 stores around the world, with 12 distribution centers and approximately 90,000 total employees. The publicly traded company ranks 281 in the Fortune 500 with $11.2 billion in 2018 sales.

AutoZone is now evaluating locations for new technology and customer support operations for digital, retail and commercial expansion. This expansion will allow the company to provide faster fulfillment of parts requests and aid mechanics with on-demand access to comprehensive repair information. The location for this activity will house servers, databases and related computer software and hardware, in addition to engineers, software developers and other employees.

Staff projects $15,179,725 in local total tax revenues to be received during the PILOT term of this project and an $13,205,063 benefit to the Applicant.

PILOT Term:

15

Projected New Jobs:

130

Projected Retained Jobs:

Not applicable

Total Jobs:

130

Projected Average Payroll of New Jobs:

$80,439

Projected Average Payroll of Retained Jobs:

Not applicable

Annual New Direct Payroll:

$10,457,125

Annual Retained Direct Payroll:

Not applicable

Total Capital Investment:

$151,393,460
Real Property Investment:
$9,004,500

Personal Property Investment:
$139,472,160

Community Reinvestment Credit (CRC):
$2,916,800

Capital Investment not in PILOT:
Not applicable

Projected Tax Revenue:

$15,153,460

Projected Taxes Abated:

$13,126,782
City: $5,789,738 (75%)
County: $7,337,044 (75%)

Benefit/Cost Ratio:

1.15

Projected MWBE/LOSB Spending:

$3,278,874

Incentive Provided:

$13,126,782

Compliance Information

Not applicable

Approved

6/19/2019

Ramp up Period

5

Closing

2/1/2021 (Real)
12/31/2019 (Personal)

Effective

12/31/2019

Lease Begins

2/1/2021 (Real)
12/31/2019 (Personal)

Lease Expires

2/1/2036 (Real)
12/31/2035 (Personal)

Amended

12/18/2019

Property Details

Lease Began

2/1/2021 (Real)
12/31/2019 (Personal)

Lease Expires

2/1/2036 (Real)
12/31/2035 (Personal)

AutoZone Parts Inc.

100 South Front Street, 104 South Front Street Memphis, TN 38103