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Memphis Record Pressing

Project Number: 20210805
Pilot Type: Fast Track
Status: Approved
Parcel ID: 092005 00053
County Commission District: 05 | City Council District: 01, 09

Summary

Memphis Record Pressing LLC (MRP), a Mississippi Limited Liability Company was approved for a ten-year Fast Track PILOT to encourage the company to invest $7,500,000 for the launch of a new logistics operation. The operation was formerly housed in its Bartlett manufacturing facility and is being relocated to accommodate increased production and long term growth. The new facility will create 111 new jobs and retain 65 existing Shelby County logistics employees earning an average wage of $36,128. It will be located at 7625 Appling Center Drive in Memphis, Tennessee.

7625 Appling Center Drive (Parcel 092005 00053) is 9.049 acres of land valued at $1,226,100 and contains a 199,622 square foot warehouse valued at $5,152,200. The project will occupy 107,876 square feet of the building or 55.15%. Real property improvements occupied by the Applicant (55.15%) will receive PILOT benefit on a proportional basis and new personal property will receive PILOT benefit.

The total Project investment includes $2,000,000 to complete buildout of tenant improvements in the facility and $5,500,000 for Equipment and Personal Property. Community Reinvestment Credit will be awarded.

MRP is a full-service manufacturer of vinyl records and record packaging. Founded in 2014, the business now produces more than four million units a year and employs 137 people at its Bartlett headquarters. With GZ Media in the Czech Republic (the world’s largest manufacturer of vinyl records) as a strategic partner, and a resurgence in demand from major record labels to release music on vinyl, MRP has become a leader in LP pressing.

MRP currently operates from approximately 45,000 square feet comprised of multiple neighboring buildings and has been in a constant state of expansion. The company is contemplating tripling the size of its physical footprint, staff and pressing capacity to growing demand for vinyl records across the globe. The company contemplated shifting production to Toronto or Prague, to be closer to suppliers. The preferred option is expansion of its headquarters and manufacturing base in Bartlett with relocation of the logistics operation to Memphis. With assistance from the PILOT program, MRP will make Shelby County home to the largest manufacturer of vinyl records in North America.

The Memphis property to be occupied currently produces $86,731 in City of Memphis and Shelby County property taxes annually. Estimated annual property taxes will average $57,169 during the PILOT term and $156,384 after. After completion, EDGE staff projects $4,944,991 in total local tax revenues to be received during the PILOT term of this Project and a $1,214,891 benefit to the Applicant.

Note: Through this request, MRP is seeking PILOT incentives from EDGE related to the relocation of its expanded logistics operations to the City of Memphis. This approval is being sought in conjunction with a request to the City of Bartlett Industrial Development Board to retain and expand its manufacturing and headquarters operations in the City of Bartlett once the logistics operation is relocated. The Memphis logistics project and the related Bartlett project together present significant job growth opportunities:

Existing Employees
-Memphis Logistics PILOT Project Jobs (Transferred from Bartlett): 65
-Bartlett Manufacturing: 54
-Bartlett Headquarters: 18

Total Existing Employees: 137

New Employees
-Memphis Logistics PILOT Project Jobs (Transferred from Bartlett): 111
-Bartlett Manufacturing: 151
-Bartlett Headquarters: 21

Total Existing Employees: 283

PILOT Term:

10 years

Projected New Jobs:

111

Projected Retained Jobs:

65

Total Jobs:

176

Projected Average Payroll of New Jobs:

$36,128

Projected Average Payroll of Retained Jobs:

Not applicable

Annual New Direct Payroll:

$4,010,208

Annual Retained Direct Payroll:

Not applicable

Total Capital Investment:

$7,500,000
Real Property Investment:
$2,000,000

Personal Property Investment:
$5,500,000

Community Reinvestment Credit (CRC):
$2,841,438

Capital Investment not in PILOT:
Not applicable

Projected Tax Revenue:

$4,944,991

Projected Taxes Abated:

$1,164,891
City: $534,724
County: $630,167

Benefit/Cost Ratio:

4.07

Projected MWBE/LOSB Spending:

$682,234

Incentive Provided:

$1,214,891

Compliance Information

Not applicable

Approved

8/18/2021

Ramp up Period

2 years

Closing

1/1/2022 (Real)

Effective

1/1/2022

Lease Begins

1/1/2022 (Real)

Lease Expires

1/1/2032 (Real)

Amended

Not applicable

Property Details

Lease Began

1/1/2022 (Real)

Lease Expires

1/1/2032 (Real)

Memphis Record Pressing

7625 Appling Center Drive, Memphis, TN 38133