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Sylvamo Corporation

Project Number: 20210401
Pilot Type: Jobs
Status: Approved
Parcel ID: 081004 00017
County Commission District: 13 | City Council District: 02, 09

Summary

**July 28, 2021 Amended and Restated**

Per the original PILOT approval, Sylvamo is amending their original PILOT approval to finalize requirements for real and personal property; local business participation and capital investment.

Sylvamo will locate their headquarters in Primacy Building #1 at 6077 Primacy Parkway near Park and Ridgeway in East Memphis (Parcel # 081004 00017), occupying 87,000 square feet.

The total project investment of $14,500,000 includes $7,500,000 to complete tenant improvements and $7,000,000 for personal property. The company is required to spend almost $2,486,630 with City of Memphis and Shelby County certified minority and women business enterprises.

The company is Memphis’ sixth Fortune 1000 headquarter company, ranking #698 in 2021, after earning $3.3 billion in annual revenue.

**Original PILOT Approval, April 21, 2021**

Sylvamo Corporation 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.Sylvamo requested 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.

At the time of the original PILOT application, Sylvamo was 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 calculation, final PILOT evaluation matrix) were not currently available. To encourage Sylvamo to select Memphis for its new global headquarters, the EDGE Board:

1. Approved 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. * The following conditions were placed on the Applicant to complete within 12-months of 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:

$14,500,000
Real Property Investment:
$7,500,000

Personal Property Investment:
$7,000,000

Community Reinvestment Credit (CRC):
$7,455,683

Capital Investment not in PILOT:
Not applicable

Projected Tax Revenue:

$35,569,630

Projected Taxes Abated:

$4,150,857
City: $1,868,011
County: $2,282,846

Benefit/Cost Ratio:

8.72

Projected MWBE/LOSB Spending:

$2,486,630

Incentive Provided:

$4,077,536

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

7/28/2021

Property Details

Lease Began

Not applicable

Lease Expires

Not applicable

Sylvamo Corporation

6077 Primacy Parkway, Memphis, TN 38119