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ServiceMaster Global Holdings, Inc.

Project Number: 20160601
Pilot Type: Expansion
Status: Approved
Parcel ID:
County Commission District: 08 | City Council District: 06

Summary

ServiceMaster Global Holdings, Inc. was awarded a personal property Expansion PILOT and a $2.3 million EDGE Cost Reimbursement Grant to retain 965 employees in the City of Memphis and relocate/consolidate its corporate headquarters at the vacant 315,450 sq. ft. former Peabody Place retail/entertainment facility located at 150 Peabody Place, Memphis, TN. In addition, EDGE will act as a conduit for the $5.5 million Tennessee FastTrack Economic Development Grant awarded the project.

Established in 1929, ServiceMaster includes such well-known brands as Terminix, Merry Maid, and American Home Shield and is traded on the New York Stock Exchange. ServiceMaster has 13,000 total employees nationwide.

Total project investment is $36 million, including $26.7 million in real property improvements and $9.3 million in personal property. In addition to the corporate offices, ServiceMaster will create a state-of-the-art Information Technology Innovation Center at the new downtown location. The retained employees will include the Executive Leadership Team and other headquarters staff. The average base salary for the 965 Retained Jobs is $95,741 excluding benefits.

EDGE Staff projects $76,575,081 in total local tax revenues will be received during the PILOT term. The personal property PILOT will provide an estimated $3,143,831 of benefit to ServiceMaster.

EDGE, the State of Tennessee, the Center City Development Corporation, the Center City Revenue Finance Corporation, the Downtown Parking Authority, and the Tennessee Valley Authority provided incentives and assistance for the project.

PILOT Term:

15 years

Projected New Jobs:

Not applicable

Projected Retained Jobs:

965

Total Jobs:

965

Projected Average Payroll of New Jobs:

Not applicable

Projected Average Payroll of Retained Jobs:

$95,741

Annual New Direct Payroll:

Not applicable

Annual Retained Direct Payroll:

$92,390,065

Total Capital Investment:

$36,000,000
Real Property Investment:
$26,700,000

Personal Property Investment:
$9,300,000

Community Reinvestment Credit (CRC):
Not applicable

Capital Investment not in PILOT:
Not applicable

Projected Tax Revenue:

$76,575,081

Projected Taxes Abated:

$843,831
City: $369,242 (75%)
County: $474,589 (75%)

Benefit/Cost Ratio:

24.36

Projected MWBE/LOSB Spending:

$20,866,875

Incentive Provided:

$843,831

Compliance Information

Not applicable

Approved

6/15/2016

Ramp up Period

4 years

Closing

12/31/2016 (Personal)

Effective

12/31/2016

Lease Begins

12/31/2016 (Personal)

Lease Expires

12/31/2033 (Personal)

Amended

Not applicable

Property Details

Lease Began

12/31/2016 (Personal)

Lease Expires

12/31/2033 (Personal)

ServiceMaster Global Holdings, Inc.

150 Peabody Place, Memphis, TN 38103