Project Number: 20220706
Pilot Type: Jobs
Status: Active
Parcel ID: 049065 00001C
County Commission District: 10 | City Council District: 6, 8

Summary

Riviana Foods Inc. (“Applicant”) was approved for an eleven-year Jobs PILOT to enable the company to create 80 Net New Jobs and invest $80,608,000 in the City of Memphis at 2314 South Lauderdale Street.

The total Project investment includes $26,642,000 for renovations and improvements to the existing structure and $53,966,000 for new manufacturing machinery, equipment and other eligible personal property. The Applicant will hire 80 new employees with an average wage of $44,574.

The property located at 2314 South Lauderdale (Parcel 049065 00001C) is 29.49 acres, contains an existing 386,565 square foot manufacturing mill and is valued at $17,589,500 ($975,300 land and $16,614,200 building). New personal property at this location will be included the PILOT. The value of real property renovations to this property will be included in the PILOT.

Community Reinvestment Credit for the value of existing property is not being offered to this Project as it has previously benefited from the PILOT program.

Riviana Foods Inc. is the largest processor, marketer and distributor of rice products in the United States. The company produces both private label goods and its own brands such as Mahatma, Carolina, Success, Minute and Gourmet House. The company has been a leader in the US market since 1911 and is now a wholly owned subsidiary of Spanish food group Ebro Foods, S.A. The company has been evaluating locations for expansion of its ready-to-serve (RTS) products at facilities throughout the United States in addition to potential expansions in Spain. If Memphis is chosen, the company will repurpose warehouse space in the existing facility as production space. The facility’s capacity would double from approximately 300,000 to 600,000 RTS rice cups per day.

The property related to the Project, located in a severely distressed New Markets Tax Credit Eligible Census Tract, currently produces $438,546 in City of Memphis and Shelby County property taxes annually. Estimated annual property taxes will average $647,705 during the PILOT term and $1,099,076 after the PILOT term expires. Staff projects $8,429,005 in total new local tax revenues to be received during the PILOT term of this Project and a $8,685,683 benefit to the Applicant.

NOTE: Real property associated with this Project is currently receiving benefit under the previously approved PILOT #20190101 which will be terminated on or before the date that a new Real Property PILOT Lease Agreement is executed related to this subsequent approval. Personal property leases under previous agreements will not be affected.

PILOT Term:

11 years

Projected New Jobs:

80

Projected Retained Jobs:

Not applicable

Total Jobs:

80

Projected Average Payroll of New Jobs:

$44,574

Projected Average Payroll of Retained Jobs:

Not applicable

Annual New Direct Payroll:

Not applicable

Annual Retained Direct Payroll:

Not applicable

Total Capital Investment:

$80,600,000
Real Property Investment:
$26,642,000

Personal Property Investment:
$53,966,000

Community Reinvestment Credit (CRC):
$80,600,000

Capital Investment not in PILOT:
Not applicable

Projected Tax Revenue:

$8,429,005

Projected Taxes Abated:

$8,685,643
City: $3,823,526
County: $4,862,117

Benefit/Cost Ratio:

0.97

Projected MWBE/LOSB Spending:

$7,963,352

Incentive Provided:

$8,685,643

Compliance Information

Not applicable

Approved

7/26/2022

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

Riviana Foods

2314 S Lauderdale, Memphis, TN 38106