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RedDOT Corporation

Project Number: 20210905
Pilot Type: Fast Track
Status: Approved
Parcel ID: 050111 00040C, 050111 00001C
County Commission District: 09 | City Council District: 06, 08

Summary

RedDot Corporation, a Washington ESOP, was approved for a ten-year Fast Track PILOT to encourage the company to invest $14,260,000 to purchase, renovate and equip a new manufacturing facility on Presidents Island, retain 41 existing Memphis employees and create 84 net jobs paying an average wage of $34,211.

Total project investment includes $9,000,000 for the real property purchase, $1,000,000 to complete building renovations, $3,825,000 for new machinery and personal property, and $435,000 for existing machinery and personal property transferred into Shelby County from other company facilities. Approximately $650,000 of equipment and personal property will be transferred from another Memphis facility but will not receive PILOT benefit. Community Reinvestment Credit has been requested and will be awarded.

RedDot Corporation will occupy 100% of the facility recently shuttered by GSK (GlaxoSmithKline). Real property improvements and new personal property will receive PILOT benefit.

- 2049 Harbor Avenue (Parcel 050111 00040C) is 20.149 acres of land appraised at $611,800 and contains a 292,934 square foot Manufacturing Mill currently appraised at $5,316,700.
- 2172 Wharf Street (Parcel 050111 00001C) is 4.345 acres of land appraised at $198,700 and contains a 25,600 square foot warehouse appraised at $674,500.

RedDot is a manufacturer of HVAC systems for heavy duty mobile applications and a distributor of HVAC components. The company’s products are found in mining bulldozers, farming combines, military vehicles, fire trucks and tour buses. Founded in 1965, RedDot now has facilities in North America, Europe and Asia, employs 425 people worldwide and has reached revenues exceeding $100 million.
RedDot has outgrown its current Memphis facility and is pursuing a strategy to move some production from the Northwest into a Central United States location. This consolidated location will include industrial manufacturing, assembly, sheet forming, welding, brazing, plastic injection molding and distribution. The company has considered sites in West Tennessee and North Mississippi.

PILOT Term:

10 years

Projected New Jobs:

84

Projected Retained Jobs:

41

Total Jobs:

125

Projected Average Payroll of New Jobs:

$34,211

Projected Average Payroll of Retained Jobs:

Not applicable

Annual New Direct Payroll:

$2,873,724

Annual Retained Direct Payroll:

Not applicable

Total Capital Investment:

$14,260,000
Real Property Investment:
$10,000,000

Personal Property Investment:
$4,260,000

Community Reinvestment Credit (CRC):
$650,000

Capital Investment not in PILOT:
Not applicable

Projected Tax Revenue:

$4,494,383

Projected Taxes Abated:

$1,946,886
City: $856,900
County: $1,089,986

Benefit/Cost Ratio:

2.31

Projected MWBE/LOSB Spending:

$542,003

Incentive Provided:

$1,946,886

Compliance Information

Not applicable

Approved

9/15/2021

Ramp up Period

Not applicable

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

RedDOT Corporation

2049 Harbor Avenue, Memphis, TN 38106