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Ebrofrost North America, Inc.
Project Number: 20170401
Pilot Type: Jobs
Status: Approved
Parcel ID: 049069 00006Z
County Commission District: 10 | City Council District: 06
Pilot Type: Jobs
Status: Approved
Parcel ID: 049069 00006Z
County Commission District: 10 | City Council District: 06
Summary
Ebrofrost North America, Inc.'s PILOT agreement was amended on February 21, 2018 to include an increase of net new jobs with a higher salary component; increase in occupied building percentage; and an increase in real property investment to be included in the PILOT.Ebrofrost North America, Inc. was awarded an eight-year Jobs PILOT to enable the company to create 19 Net New Jobs and invest $26,544,185 in the City of Memphis at 2360 Prospect Street.
The total project investment includes $7,050,000 to renovate 54,326 square feet of an existing 85,021 square foot building, $3,750,000 to build 24,000 square feet of new space, $250,000 in soft costs and $13,884,000 for new personal property.
The Applicant is requesting Community Reinvestment Credit for the portion of the existing property to be occupied valued at $1,610,185.
Ebrofrost North America, Inc. will hire will hire 19 new employees with an average base salary of $60,654, excluding overtime and benefits.
The project site is to be owned by Riviana Foods, Inc. and leased to Ebrofrost North America, Inc. Parcel 049068 00001C (2360 Prospect Street) is 6.49 acres and contains the existing warehouse. Parcel 049069 00006Z (0 Prospect Street) is 0.085 acres and vacant. In addition, approximately 0.873 acres of vacant land in adjacent Parcel 049059 00057 (865 East Bodley Avenue) will be included in the project site and remapped by the Shelby County Assessor to reflect the purchase by Riviana Foods, Inc.
All of Ebrofrost North America, Inc.'s qualified personal property will be included in the PILOT. All of the real estate will be placed in the PILOT; but Ebrofrost North America, Inc.'s benefit and PILOT payments will be calculated proportionally based on the amount of improved space occupied by the company, estimated to be 71.9% of the property upon completion of construction.
Ebrofrost North America, Inc. is a wholly owned subsidiary of Ebrofrofrost Holding GmbH, the largest rice and second largest pasta manufacturer in the world. This facility will be the equivalent of three similar operations in Europe that process and distribute IQF (Individually Quick Frozen) rice, pasta and grain products.
Ebrofrost North America, Inc. has opportunities to place this project in Missouri, Minnesota and Canada, but would like to co-locate with its sister company, Riviana Foods, and access Memphis’s central distribution advantages. In addition to warehouse space, Ebrofrost North America, Inc. will need to build a clean processing area and a flash freezing area as part of the manufacturing operation. The Payment-In-Lieu-Of-Tax program will allow Ebrofrost North America, Inc. to renovate an existing facility in Memphis that fits their needs, construct vital new manufacturing components and hire new employees.
Staff projects $2,036,270 in local total tax revenues to be received during the PILOT term of this project and a $2,668,270 benefit to Ebrofrost North American, Inc.
PILOT Term:
8 year
Projected New Jobs:
19
Projected Retained Jobs:
Not applicable
Total Jobs:
19
Projected Average Payroll of New Jobs:
$60,654
Projected Average Payroll of Retained Jobs:
Not applicable
Annual New Direct Payroll:
$1,152,426
Annual Retained Direct Payroll:
Not applicable
Total Capital Investment:
$26,544,185
Real Property Investment:
$10,800,000
Personal Property Investment:
$13,884,000
Community Reinvestment Credit (CRC):
$1,610,185
Capital Investment not in PILOT:
$250,000
Projected Tax Revenue:
$2,036,270
Projected Taxes Abated:
$2,668,269
City:
$1,166,033
(75%)
County:
$1,502,236
(75%)
Benefit/Cost Ratio:
0.78
Projected MWBE/LOSB Spending:
$3,100,238
Incentive Provided:
$2,668,270
Compliance Information
Not applicable
Approved
4/19/2017
Ramp up Period
2 years
Closing
12/31/2017 (Real)
12/31/2017 (Personal)
12/31/2017 (Personal)
Effective
12/31/2017
Lease Begins
12/31/2017 (Real)
12/31/2017 (Personal)
12/31/2017 (Personal)
Lease Expires
12/31/2025 (Real)
12/31/2026 (Personal)
12/31/2026 (Personal)
Amended
2/21/2018
Property Details
Lease Began
12/31/2017 (Real)
12/31/2017 (Personal)
12/31/2017 (Personal)
Lease Expires
12/31/2025 (Real)
12/31/2026 (Personal)
12/31/2026 (Personal)
Ebrofrost North America, Inc.
2360 Prospect Street, Memphis, TN 38106-
Project Files
-
Ebrofrost_
North_ America_ Inc_ Mayors_ Letter. pdf - Application
- Analysis
- Termsheet
- Resolutions
- Mayors Letter
- Miscellaneous
-
Ebrofrost_
- Closing
- Compliance Files