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Imperial Industrial Supply Company

Project Number: 20210101
Pilot Type: Fast Track
Status: Approved
Parcel ID: 094200 00503
County Commission District: 12 | City Council District: 03, 08

Summary

Imperial Industrial Supply Company (“Applicant”) was approved for a 10-year Fast Track PILOT to enable the company to purchase and complete buildout of 6099 Global Drive, create 35 Net New Jobs with an average wage of $37,771 and invest $20,900,000 in the project.

The total project investment includes $18,575,000 for the property purchase ($673,200 land and $17,901,800 building), $1,125,000 for renovation, construction and site improvements, and $1,200,000 for equipment and personal property. Community Reinvestment Credit has been requested.

Parcel 094200 00503 (6099 Global) is 22.905 acres and contains a 321,298 square foot building that is nearing completion of construction. The Applicant will occupy the entire building. The existing building, new real property improvements and personal property at this location will be included in the PILOT.

Imperial Industrial Supply Company, doing business as Max Tool, is both a wholesale and retail distributor of industrial hardware, tools and equipment. Products range from Milwaukee drills and DeWalt saws to Honda lawnmowers and Husqvarna string trimmers to DuroMax generators and Tomahawk spray guns. The Ontario, California based company was founded in 1984, has grown to more than $120 million in annual revenue and remains family owned and operated.

Today, 85% of all shipments are handled through a California distribution facility and 15% through a third-party logistics provider in Millington, TN. The company needs to better serve the east coast and central United States. As well, they wish to own and operate a facility without using a 3PL. Imperial is considering scenarios that involve a new California property, properties in Pennsylvania, and properties in North Mississippi. The Memphis opportunity would allow the company to shift approximately 70% of all distribution under one roof at this single facility, while leaving 30% in its existing California facility. The company expects the Memphis operation to grow to more than 50 employees within five years.

Construction on 6099 Global is not yet complete and it only produces $19,512 today in City of Memphis and Shelby County property taxes annually. Estimated annual property taxes will average $102,645 during the PILOT term and $556,689 after. Staff projects $2,881,663 in total local tax revenues to be received during the PILOT term of this project and a $4,218,004 benefit to the Applicant.

PILOT Term:

10

Projected New Jobs:

35

Projected Retained Jobs:

Not applicable

Total Jobs:

35

Projected Average Payroll of New Jobs:

$37,771

Projected Average Payroll of Retained Jobs:

Not applicable

Annual New Direct Payroll:

$1,321,985

Annual Retained Direct Payroll:

Not applicable

Total Capital Investment:

$20,900,000
Real Property Investment:
$19,700,000

Personal Property Investment:
$1,200,000

Community Reinvestment Credit (CRC):
Not applicable

Capital Investment not in PILOT:
Not applicable

Projected Tax Revenue:

$2,881,663

Projected Taxes Abated:

$4,218,004
City: $1,860,438
County: $2,357,566

Benefit/Cost Ratio:

0.68

Projected MWBE/LOSB Spending:

$913,951

Incentive Provided:

$4,218,004

Compliance Information

Not applicable

Approved

1/20/2021

Ramp up Period

2

Closing

Not applicable

Effective

Not applicable

Lease Begins

Not applicable

Lease Expires

Not applicable

Amended

Not applicable

Property Details

Lease Began

Not applicable

Lease Expires

Not applicable

Imperial Industrial Supply Company

6099 Global Drive, Memphis, TN 38141