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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
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)
12/31/2019 (Personal)
Effective
12/31/2019
Lease Begins
2/1/2021 (Real)
12/31/2019 (Personal)
12/31/2019 (Personal)
Lease Expires
2/1/2036 (Real)
12/31/2035 (Personal)
12/31/2035 (Personal)
Amended
12/18/2019
Property Details
Lease Began
2/1/2021 (Real)
12/31/2019 (Personal)
12/31/2019 (Personal)
Lease Expires
2/1/2036 (Real)
12/31/2035 (Personal)
12/31/2035 (Personal)