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JM Smucker LLC

Project Number: 20130201
Pilot Type: Standard/Basic
Status: Approved
Parcel ID: 074032 00038
County Commission District: 5 | City Council District: 3, 9

Summary

J.M. Smucker was awarded a PILOT amendment to receive a 15-­year incentive to enable the company to invest $96 million while adding 103 new jobs.

The project will create $16,255,575 in new tax revenue for Memphis and Shelby County over the 15-­year term.

The company was originally approved for a 12-­year PILOT that called for J.M. Smucker to invest $55 million and create 125 new jobs.

J.M. Smucker had scheduled to shutter its Memphis operation in favor of its Orrville, Ohio facility, but instead decided to retain its Memphis operations and expand the facility following the approval of the PILOT.

According to the company’s amended application, a review of its production process revealed that the company would need to nearly double its local investment to purchase more equipment and invest in a larger expansion at its Memphis facilities located at 4789 Cromwell Road and 4740 Burbank Road.

To date, 61 of the previously 125 new jobs committed are on site and J.M. Smucker said the company will add 42 new jobs over the next four years.

The increased investment in equipment will require more automation and reduce the company’s new job commitments from 125 to 103, but J.M. Smucker said it will raise its average salary commitment from $48,256 to $52,545.

J.M. Smucker is the one of the largest U.S. quality branded processed and packaged goods producer.

PILOT Term:

15 years

Projected New Jobs:

103

Projected Retained Jobs:

Not applicable

Total Jobs:

103

Projected Average Payroll of New Jobs:

$52,545

Projected Average Payroll of Retained Jobs:

Not applicable

Annual New Direct Payroll:

$5,412,135

Annual Retained Direct Payroll:

Not applicable

Total Capital Investment:

$96,013,397
Real Property Investment:
$34,246,397

Personal Property Investment:
$61,767,000

Community Reinvestment Credit (CRC):
Not applicable

Capital Investment not in PILOT:
Not applicable

Projected Tax Revenue:

$16,255,575

Projected Taxes Abated:

$13,021,614
City: $5,690,445
County: $7,331,169

Benefit/Cost Ratio:

1.25

Projected MWBE/LOSB Spending:

$5,377,500

Incentive Provided:

$13,021,641

Compliance Information

Not applicable

Approved

2/20/2013

Ramp up Period

4 years

Closing

12/31/2014 (Real)
12/31/2014 (Personal)

Effective

12/31/2014

Lease Begins

12/31/2014 (Real)
12/31/2014 (Personal)

Lease Expires

12/31/2027 (Real)
12/31/2033 (Personal)

Amended

1/15/2014

Property Details

Lease Began

12/31/2014 (Real)
12/31/2014 (Personal)

Lease Expires

12/31/2027 (Real)
12/31/2033 (Personal)

JM Smucker LLC

4740 Burbank Rd, Memphis, TN 38118