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Mullen Technologies Inc.
Project Number: 20210301
Pilot Type: Jobs
Status: Approved
Parcel ID: 081093 00002
County Commission District: 04 | City Council District: 02, 09
Pilot Type: Jobs
Status: Approved
Parcel ID: 081093 00002
County Commission District: 04 | City Council District: 02, 09
Summary
Mullen Technologies, Inc. (“Applicant”) was approved for a fifteen-year Jobs PILOT to enable the company to renovate 8400 Winchester as an electric vehicle assembly plant, creating 434 net new jobs with an average annual wage of $53,109 and investing $362,400,000 in the Project excluding Community Reinvestment Credit.Parcel 081093 00002 (8400 Winchester) is 37.017 acres and contains an 817,000 square foot warehouse built in 1982. The Applicant will occupy 100% of the building. The building has been vacant since Nike relocated this operation from the site approximately five years ago and Community Reinvestment Credit of $14,627,200 ($3,425,400 land and $11,201,800 building) is to be awarded.
Headquartered in Brea, California, Mullen Technologies is a start-up electrical vehicle manufacturer. Mullen plans to complete design and engineering of a mid-size crossover SUV in 2022, receive necessary regulatory approvals in 2023 and begin production in 2024. This first vehicle will be priced at a range of $58,500 to $78,500. The company plans to open their plant with production of 5,000 vehicles in 2024 and expects to grow rapidly producing approximately 22,000 units with $2 billion in sales by 2027.
Mullen has been evaluating other locations for its assembly plant in their home state of California, as well as pursuing a new construction project in Spokane, Washington. The Memphis area, however, provides distinct advantages over other opportunities. The Memphis option does not require a time-consuming new building design, financing and construction process. The Central United States location is ideally suited to leverage suppliers and reach customers, and there are two synergistic facilities available within 50 miles of one another. The 817,000 square foot Memphis assembly plant can be supported by a 120,000 square foot engineering facility in Tunica, Mississippi that was vacated by Green Tech Automotive in 2017. Mullen has secured and intends to utilize both properties if incentives are approved.
Mullen is in final stages of a merger with Net Element which trades on the NASDAQ as NETE. Following the merger, the symbol will change to MULN. The merger will give Mullen access to technologies and production partnerships for light lithium sulfur batteries critical to electric vehicles in addition to the ownership trading platform. In addition, the company has applied for a $450 million Department of Energy Advanced Technology Vehicles Manufacturing Loan and is working on private debt and equity financing totaling more than $500 million.
8400 Winchester currently produces $423,954 in direct City of Memphis and Shelby County property taxes annually. Estimated direct annual property taxes will average $1,001,390 during the PILOT term and $2,640,067 after. Staff projects $52,790,868 in total local tax revenues to be received during the PILOT term of this Project and a $40,594,867 benefit to the Applicant.
PILOT Term:
15
Projected New Jobs:
434
Projected Retained Jobs:
Not applicable
Total Jobs:
434
Projected Average Payroll of New Jobs:
$53,109
Projected Average Payroll of Retained Jobs:
Not applicable
Annual New Direct Payroll:
$23,049,306
Annual Retained Direct Payroll:
Not applicable
Total Capital Investment:
$362,400,000
Real Property Investment:
$26,000,000
Personal Property Investment:
$336,400,000
Community Reinvestment Credit (CRC):
$14,627,200
Capital Investment not in PILOT:
Not applicable
Projected Tax Revenue:
$52,790,868
Projected Taxes Abated:
$40,594,867
City:
$17,905,178
County:
$22,689,689
Benefit/Cost Ratio:
1.30
Projected MWBE/LOSB Spending:
$9,742,780
Incentive Provided:
$40,594,867
Compliance Information
Not applicable
Approved
3/17/2021
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