‹ Back To Pilot Programs

Cherry Tree International Corp.

Project Number: 20190801
Pilot Type: Fast Track
Status: Approved
Parcel ID: 09410000153, 09410000155
County Commission District: 11 | City Council District: 03, 08

Summary

Cherry Tree International Corp. was awarded a ten-year Fast Track PILOT to encourage the company to create 25 Net New Jobs with an average base salary of $28,877 excluding benefits and invest $9,246,163 in the City of Memphis.

Cherry Tree International Corp. is a U.S. based subsidiary of Shanghai Lowen Group, a privately held e-commerce company based in China. The company provides high-quality, low-priced products direct from manufacturers to consumers through online marketplaces such as Amazon, eBay, and Walmart. The company specializes in pet products, sporting goods and furniture. Cherry Tree International is evaluating locations in the central United States with strong logistics assets in order to expand its free 2-day shipping capacity to 95% of the U.S. population. The proposed Memphis distribution facility would be the company's third location along with one in California and another in Delaware.

EDGE Staff projects $1,528,148 in local total tax revenues to be received during the PILOT term of this project and a $1,708,060 benefit to Cherry Tree International.

PILOT Term:

10

Projected New Jobs:

25

Projected Retained Jobs:

Not applicable

Total Jobs:

25

Projected Average Payroll of New Jobs:

$28,877

Projected Average Payroll of Retained Jobs:

Not applicable

Annual New Direct Payroll:

$872,500

Annual Retained Direct Payroll:

Not applicable

Total Capital Investment:

$9,246,163
Real Property Investment:
$220,000

Personal Property Investment:
Not applicable

Community Reinvestment Credit (CRC):
$8,126,163

Capital Investment not in PILOT:
$900,000

Projected Tax Revenue:

$1,528,148

Projected Taxes Abated:

$1,708,060
City: $746,422 (75%)
County: $961,638 (75%)

Benefit/Cost Ratio:

0.89

Projected MWBE/LOSB Spending:

$311,209

Incentive Provided:

$1,708,060

Compliance Information

Not applicable

Approved

8/21/2019

Ramp up Period

2

Closing

12/31/2019 (Real)

Effective

12/31/2019

Lease Begins

12/31/2019 (Real)

Lease Expires

12/31/2029 (Real)

Amended

Not applicable

Property Details

Lease Began

12/31/2019 (Real)

Lease Expires

12/31/2029 (Real)

Cherry Tree International Corp.

3955 East Holmes Road, Memphis, TN 38118