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Sylvamo Corporation

Project Number: 20210401
Pilot Type: Jobs
Status: Approved
Parcel ID:
County Commission District: | City Council District:

Summary

Sylvamo Corporation (“Sylvamo” or “Applicant”)was approved for a fifteen-year Jobs PILOT. The company is a wholly-owned subsidiary of International Paper Company that is being spun-off into an independent, publicly-traded company with an estimated $3.3 billion in sales and seven domestic/international mills with a capacity to produce 3.5 million short tons of printing and writing paper – making it one of the industry’s largest competitors.

Sylvamo is looking for a corporate headquarters location that will employ 300 people with an average salary/bonus of $179,235 (“Project”). Applicant is requesting a 15-year Jobs PILOT to encourage it to select Memphis for its global headquarters location.
Sylvamo’s products will be used in copiers, printers and for digital imaging. End-use applications include advertising and promotional materials, greeting cards, books and direct mail. Products also include envelopes, tablets, business forms and file folders.

Sylvamo is currently evaluating potential locations for its global headquarters, including at least seven within the City of Memphis. As a result, certain details typically included in a Jobs PILOT Term Sheet (e.g., Project budget detail, Local Business Participation (“LBP”) calculation, final PILOT evaluation matrix) are not currently available. To encourage Sylvamo to select Memphis for its new global headquarters, the EDGE Board hereby:

1. Approves the Project for a 15-year, 75-percent abatement of City and County taxes for real property improvements (including Community Reinvestment Credit benefit) and personal property taxes, as outlined in the EDGE Jobs PILOT Policies & Procedures effective June 1, 2019 (“Policies and Procedures”), conditioned on the Applicant within 12-months from approval.

a. Selecting a site for the Project within the City of Memphis or unincorporated Shelby County;

b. Committing to create at least 300 jobs averaging $179,235 annually for salaries and bonuses for the Project;

c. Providing EDGE with a definitive Project budget detail (e.g., new capital investment, Community Reinvestment Credit) and committing to new tangible personal property and real property improvements, totaling at least $10 million;


d. Providing the amount of real property space to be leased by Sylvamo for the Project and all other data typically required of a PILOT applicant by the Policies and Procedures; and

e. Committing to meet the minimum LBP standard as set forth in the Policies and Procedures.

2. Agrees, upon Sylvamo’s satisfaction of the foregoing conditions, to approve an Amended and Restated Term Sheet, in a standard EDGE Jobs PILOT format, incorporating the data required in No. 1 above and providing a final PILOT evaluation matrix, Project budget detail, LBP calculation, the estimated direct/indirect Project-related tax revenue to be received by the City and County, and the estimated property taxes to be abated.

3. Agrees, if the Applicant selects a Project location currently in a PILOT through the Memphis Center City Revenue Finance Corporation (“CCRFC”), to work with the Applicant and CCRFC to maximize PILOT benefit to the Applicant consistent with both CCRFC and EDGE PILOT Policies & Procedures.

PILOT Term:

15

Projected New Jobs:

300

Projected Retained Jobs:

Not applicable

Total Jobs:

300

Projected Average Payroll of New Jobs:

$179,235

Projected Average Payroll of Retained Jobs:

Not applicable

Annual New Direct Payroll:

$53,770,500

Annual Retained Direct Payroll:

Not applicable

Total Capital Investment:

Not applicable
Real Property Investment:
Not applicable

Personal Property Investment:
Not applicable

Community Reinvestment Credit (CRC):
Not applicable

Capital Investment not in PILOT:
Not applicable

Projected Tax Revenue:

Not applicable

Projected Taxes Abated:

Not applicable
City: Not applicable
County: Not applicable

Benefit/Cost Ratio:

Not applicable

Projected MWBE/LOSB Spending:

Not applicable

Incentive Provided:

Not applicable

Compliance Information

Not applicable

Approved

4/21/2021

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