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Coca-Cola Refreshments USA, Inc.
Project Number: 20150201
Pilot Type: Retention
Status: Approved
Parcel ID: 094200 00004310
County Commission District: 12 | City Council District: 3,8
Pilot Type: Retention
Status: Approved
Parcel ID: 094200 00004310
County Commission District: 12 | City Council District: 3,8
Summary
Coca-Cola Refreshments USA, Inc. was awarded a 15-year Retention PILOT to enable the company to retain 317 jobs, add 50 net new jobs and invest $10,039,000 at a new distribution facility located at 4770 Southpoint Drive.Coca-Cola will invest $3,991,000 in real property and $809,000 in personal property improvements at the new facility.
In addition, the company will receive $5,239,000 in Community Reinvestment Credit (CRC) for the use of 46 percent (266,800 Square feet) of the Southpoint facility, for a total capital investment of $10,039,000.
The average salary of the 50 new employees will be $39,913. The average salary of the 317 retained employees is $39,793.
The project will create $27,339,598 in new tax revenue for Memphis and Shelby County and has a benefit/cost ratio of $7.83 of new tax revenue for every $1 of taxes abated.
The PILOT will allow the Applicant to consolidate its current 499 S. Hollywood and West Memphis manufacturing and distribution facilities into one centrally located distribution center. The new facility will serve as the distribution hub for Coca-Cola in the Mid South. The manufacturing facility, and its employees, will remain at 499 S. Hollywood.
The new consolidated distribution center will provide increased operational efficiencies and allow for expansion and future growth.
Established in 1886, Coca-Cola is now the number one provider of sparkling beverages, juices and juice drinks globally. Coca-Cola is the world’s largest beverage company and has more than 130,000 associates worldwide.
**Amended and Restated on July 28, 2021**
On July 6, 2021, the City of Memphis acquired the 499 South Hollywood property for City operations at the future Liberty Park facility.
The terms of the original PILOT required Coca Cola remain at the property. This amendment allows Coca Cola to move forward with the City’s acquisition deal.
PILOT Term:
15 years
Projected New Jobs:
50
Projected Retained Jobs:
317
Total Jobs:
367
Projected Average Payroll of New Jobs:
$39,913
Projected Average Payroll of Retained Jobs:
$39,793
Annual New Direct Payroll:
$14,610,031
Annual Retained Direct Payroll:
Not applicable
Total Capital Investment:
$10,039,000
Real Property Investment:
$3,991,000
Personal Property Investment:
$809,000
Community Reinvestment Credit (CRC):
$5,239,000
Capital Investment not in PILOT:
Not applicable
Projected Tax Revenue:
$27,339,598
Projected Taxes Abated:
$3,493,225
City:
$1,526,539
(80%)
County:
$1,966,686
(75%)
Benefit/Cost Ratio:
7.83
Projected MWBE/LOSB Spending:
$3,221,329
Incentive Provided:
$3,493,225
Compliance Information
Not applicable
Approved
2/18/2015
Ramp up Period
2 years
Closing
3/31/2015 (Real)
12/31/2015 (Personal)
12/31/2015 (Personal)
Effective
Not applicable
Lease Begins
3/31/2015 (Real)
12/31/2015 (Personal)
12/31/2015 (Personal)
Lease Expires
3/31/2030 (Real)
12/31/2030 (Personal)
12/31/2030 (Personal)
Amended
7/28/2021
Property Details
Lease Began
3/31/2015 (Real)
12/31/2015 (Personal)
12/31/2015 (Personal)
Lease Expires
3/31/2030 (Real)
12/31/2030 (Personal)
12/31/2030 (Personal)