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Performance Food Group

Project Number: 20211206
Pilot Type: Jobs
Status: Approved
Parcel ID:
County Commission District: 12 | City Council District: 03, 08

Summary

Performance Food Group, Inc. (“Applicant” or “PFG”), an NYSE publicly traded company, was awarded a seven-year Jobs PILOT to encourage the company and its landlord (Scannell Properties) to invest approximately $29,200,000 to construct a new build-to-suit distribution facility on Global Drive in the City of Memphis. The project would retain 60 existing Memphis employees and create 36 new jobs paying an average wage of $45,492. The new facility is estimated to be approximately 150,000 square feet in size.

The total Project investment is estimated to include $21,300,000 for construction, $4,400,000 for new personal property and $3,500,000 for soft costs. PFG will be a tenant in the building once it is completed and will not maintain an ownership right to the real property.

Currently, Parcel ID 094300 00612 is 49.173 acres of vacant land appraised at $1,489,900 by the Shelby County Assessor or Property. The Applicant’s Project will occupy approximately 49% of the land, after the land is subdivided and re-platted. Both real property improvements and new personal property located on the Applicant’s portion of the site will be included in the PILOT.
PFG markets and distributes more than 250,000 food and food-related products across the United States through its Foodservice and Vistar divisions. Founded in 1885 as a wholesale distributor in Richmond, Virginia, the company has continually evolved. Today the company employs more than 25,000 people and has annual revenues of more than $30 billion.

The company’s $9 billion Vistar segment is growing. This segment provides products to hotels, office coffee distributors, theaters, convenience stores, vending companies, restaurants, and retailers. The segment now has more than 100,000 customers. To continue this growth, PFG searched for a new facility in the Central United States and considered multiple properties in both Tennessee and Mississippi for this operation. The new facility will serve customers in multiple states throughout the Midsouth region.

The subject property currently produces $18,001 in City of Memphis and Shelby County property taxes annually. Estimated annual property taxes will average $168,848 during the PILOT term and $566,571 after the PILOT terminates. Staff projects $2,438,764 in total local tax revenues to be received during the PILOT term of this Project and a $2,976,256 benefit based on the completed project.

PILOT Term:

7 years

Projected New Jobs:

36

Projected Retained Jobs:

60

Total Jobs:

96

Projected Average Payroll of New Jobs:

$45,492

Projected Average Payroll of Retained Jobs:

Not applicable

Annual New Direct Payroll:

$1,637,712

Annual Retained Direct Payroll:

Not applicable

Total Capital Investment:

$29,200,000
Real Property Investment:
$21,300,000

Personal Property Investment:
$4,400,000

Community Reinvestment Credit (CRC):
$3,500,000

Capital Investment not in PILOT:
Not applicable

Projected Tax Revenue:

$2,438,764

Projected Taxes Abated:

$2,976,255
City: $1,309,971
County: $1,666,284

Benefit/Cost Ratio:

0.82

Projected MWBE/LOSB Spending:

$5,771,438

Incentive Provided:

$2,976,256

Compliance Information

Not applicable

Approved

12/15/2021

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

Performance Food Group

0 Global Drive, Memphis, TN 38118