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DunAn Precision Inc

Project Number: 20151102
Pilot Type: Standard/Basic
Status: Approved
Parcel ID: 093400 00543
County Commission District: 11 | City Council District: 3

Summary

Memphis, Tenn. – DunAn Precision, Inc. was awarded an eight-year Basic PILOT to encourage the company to add 104 net new jobs and invest more than $23 million at 5750 Challenge Dr.

DunAn Precision will invest $500,000 in real property improvements and $19,500,000 in personal property improvements at 5750 Challenge Dr.

In addition, DunAn Precision will receive $3,648,000 in Community Reinvestment Credit (CRC) for the use of 160,000 square feet (38 percent) of the Challenge Dr. facility, for a total capital investment of $23,648,000.

The average annual salary of the 104 net new employees will be $54,529.

The project will create $4,271,495 in new tax revenue for Memphis and Shelby County, and has a benefit to cost ratio of $2.01 of new tax revenue for every $1 of taxes abated.

The 8-year PILOT will allow for expansion and future growth within Memphis and Shelby County. T​he PILOT will enable DunAn Precision to locate a new heat exchanger manufacturing facility in Memphis and Shelby County.

Founded in 1987, DunAn is a global enterprise specializing in advanced manufacturing with more than $1.21 billion in sales revenue. DunAn’s market share for service valves, accumulators and pipe assemblies ranks first in the industry and the market share for reversing valves ranks second.

PILOT Term:

8 years

Projected New Jobs:

104

Projected Retained Jobs:

Not applicable

Total Jobs:

104

Projected Average Payroll of New Jobs:

$54,529

Projected Average Payroll of Retained Jobs:

Not applicable

Annual New Direct Payroll:

$5,671,016

Annual Retained Direct Payroll:

Not applicable

Total Capital Investment:

$23,648,000
Real Property Investment:
$500,000

Personal Property Investment:
$15,950,000

Community Reinvestment Credit (CRC):
Not applicable

Capital Investment not in PILOT:
$3,648,000

Projected Tax Revenue:

$4,271,495

Projected Taxes Abated:

$2,125,817
City: $928,982 (75%)
County: $1,196,835 (75%)

Benefit/Cost Ratio:

2.01

Projected MWBE/LOSB Spending:

$560,250

Incentive Provided:

$2,125,817

Compliance Information

Not applicable

Approved

11/18/2015

Ramp up Period

2 years

Closing

9/29/2017 (Real)
12/31/2016 (Personal)

Effective

12/31/2016

Lease Begins

9/29/2017 (Real)
12/31/2016 (Personal)

Lease Expires

9/29/2025 (Real)
12/31/2025 (Personal)

Amended

Not applicable

Property Details

Lease Began

9/29/2017 (Real)
12/31/2016 (Personal)

Lease Expires

9/29/2025 (Real)
12/31/2025 (Personal)

DunAn Precision Inc

5750 Challenge Drive, Memphis, TN 38103