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JNJ Logistics LLC
Project Number: 20180701
Pilot Type: Expansion
Status: Approved
Parcel ID: 07400100243 074001B00018 074001B00019 074001B00017
County Commission District: 11 | City Council District: 03, 08
Pilot Type: Expansion
Status: Approved
Parcel ID: 07400100243 074001B00018 074001B00019 074001B00017
County Commission District: 11 | City Council District: 03, 08
Summary
JNJ Logistics LLC was awarded a 15-year Expansion PILOT to encourage the company to invest $20.5 million at 5000 and 5050 American Way, retain 290 existing employees, and create 222 new jobs with an average salary of $65,410.JNJ Logistics is a transportation provider founded in Memphis in 1992. Today, the company provides brokerage services, shuttling and just-in-time delivery services in 48 states. They operate terminals in Georgia and Florida and are pursuing locations west of the Mississippi. JNJ Logistics operates a fleet of more than 450 trucks on the road serving customers such as FedEx, Amazon, UPS, Walmart, PepsiCo, Nestle, Frito Lay, Dillards, Bed Bath & Beyond, and McKesson.
The company has outgrown its current facility and is exploring options in the Mid-South region for relocation of its corporate headquarters, operations center, vehicle maintenance facility and on-site warehouse with cross-dock. This PILOT will help JNJ Logistics redevelop the Delta Square Shopping Center site that has been vacant for more than ten years. JNJ Logistics has proposed a major renovation of the site into a multi-functional complex, housing its large fleet of vehicles, 151 management, accounting and information technology employees, 36 maintenance and warehouse employees and more than 325 Memphis-based truck drivers.
EDGE Staff projects $35,595,269 in local total tax revenues to be received during the PILOT term and an estimated $5,855,123 benefit to JNJ Logistics.
PILOT Term:
15
Projected New Jobs:
222
Projected Retained Jobs:
290
Total Jobs:
512
Projected Average Payroll of New Jobs:
$65,410
Projected Average Payroll of Retained Jobs:
$65,410
Annual New Direct Payroll:
$23,142,000
Annual Retained Direct Payroll:
$17,715,600
Total Capital Investment:
$20,575,000
Real Property Investment:
$18,850,000
Personal Property Investment:
$1,725,000
Community Reinvestment Credit (CRC):
Not applicable
Capital Investment not in PILOT:
Not applicable
Projected Tax Revenue:
$35,595,269
Projected Taxes Abated:
$5,855,123
City:
$2,558,689
(75%)
County:
$3,296,434
(75%)
Benefit/Cost Ratio:
6.08
Projected MWBE/LOSB Spending:
$5,090,769
Incentive Provided:
$5,855,123
Compliance Information
Not applicable
Approved
7/25/2018
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