‹ Back To Pilot Programs

KTG USA LP 2021

Project Number: 20211106
Pilot Type: Jobs
Status: Approved
Parcel ID:
County Commission District: 08 | City Council District: 07, 08

Summary

K.T.G. (USA) Inc., a privately held Delaware corporation, was awarded a six-year Jobs PILOT for personal property only to encourage the company to expand its operation at 400 Mahannah Avenue. The expansion will span a $21,795,982 investment, retain 505 existing Memphis employees, and create 36 net new jobs paying an average wage of $54,185.

The total Project investment includes $1,644,368 for renovation of an existing structure, $19,774,714 for new personal property and $376,900 for soft costs.

The property located at 400 Mahannah Avenue (Parcel 039035 00017C) is 78.982 acres of land containing 1,913,224 square feet of manufacturing facilities. This parcel, its real property and other personal property on the site are in an active PILOT agreement (IDB PILOT #20110603). Only new personal property located on this site associated with this new expansion Project will be included in the PILOT and receive benefit as described in this Term Sheet.

KTG is a subsidiary of Kruger Group. Kruger is Canadian based tissue manufacturer with nine North American plants, 2,700 employees and $1.2 billion in annual sales (USD). Their products include White Cloud and other private label tissue paper brands.

KTG’s Memphis operation has experienced tremendous growth since 2001. The company would like to modernize by adding new equipment to convert paper used in existing and new products. This new converting asset is necessary to serve growth with existing customers and, more importantly, to secure new customer contracts.

Estimated annual property taxes will average $59,112 during the PILOT term and $113,680 after the PILOT terminates. Staff projects $1,684,873 in total local tax revenues to be received during the PILOT term of this Project and a $1,095,157 benefit to the Applicant.

PILOT Term:

6 years

Projected New Jobs:

36

Projected Retained Jobs:

505

Total Jobs:

541

Projected Average Payroll of New Jobs:

$54,185

Projected Average Payroll of Retained Jobs:

Not applicable

Annual New Direct Payroll:

$1,950,660

Annual Retained Direct Payroll:

Not applicable

Total Capital Investment:

$21,795,982
Real Property Investment:
Not applicable

Personal Property Investment:
$19,774,714

Community Reinvestment Credit (CRC):
$2,021,268

Capital Investment not in PILOT:
Not applicable

Projected Tax Revenue:

$1,684,873

Projected Taxes Abated:

$1,095,158
City: $489,517
County: $605,641

Benefit/Cost Ratio:

1.54

Projected MWBE/LOSB Spending:

$82,379

Incentive Provided:

$1

Compliance Information

Not applicable

Approved

11/18/2021

Ramp up Period

2 years

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

KTG USA LP 2021

400 Mahannah Ave, Memphis, TN 38107