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TAG Truck Enterprises, LLC

Project Number: 20160603
Pilot Type: Expansion
Status: Approved
Parcel ID: 0703011 00235C
County Commission District: 11 | City Council District: 04

Summary

TAG Truck Enterprises, LLC was awarded a 12‐year Expansion PILOT to encourage the company to add 62 net new jobs and retain 141 jobs. TAG Truck Enterprises will make a $27,810,000 capital investment to construct a new 182,795 square‐foot facility located at 0 American Way.

TAG Truck Enterprises’s five facilities in the Memphis and West Memphis area are in antiquated facilities, many of which were constructed in the 1930s.

The PILOT encourages TAG Truck Enterprises to keep its existing operations in Memphis, bring jobs to Memphis from the Arkansas facility, add new jobs and build the TAG training center. The Applicant will combine five facilities and construct a 182,795 square‐foot facility at the long vacant former Mall of Memphis site.

The average salary for the 203 employees is $54,715 excluding benefits.

The capital investment and job creation meets the Expansion PILOT requirements.

TAG Truck Enterprises will invest $26,200,000 to construct a 182,795 square‐foot training facility. TheApplicant will invest $1,000,000 in furniture, fixtures and general equipment. Additionally, the company will relocate from Arkansas $390,000 of personal property which is primarily furniture, fixtures and general equipment. TAG Truck Enterprises will also relocate $220,000 in vehicles that will not be eligible for the PILOT.

Parcel 073022 00235C is 113 acres of which 34 acres will enter the PILOT. The remaining 79 acres will be fully taxed and will likely be sold or leased to businesses that will complement the project. The assigned address of 0 American Way is classified as Vacant Land.

In 2007, Tommy Earl and Gary Dodson purchased four of Barloworld Truck Center’s dealerships for approximately $25,000,000 as the recent recession began. TAG Truck Center is now a full‐service commercial truck enterprise that deals with Freightliner, Sprinter and Fuso Trucks and operates ten sites throughout the states of Tennessee, Arkansas, Mississippi, Missouri and Kentucky. The Applicant provides service for Freightliner, Detroit Diesel, Mercedes Benz (Daimler) Diesel, Caterpillar and Cummins Engines. The Applicant is an outsourced truck fleet manager for FedEx, AutoZone, Pepsi, Ozark Motor Line and others in the Memphis transportation industry.

Staff projects $11,662,339 in total tax revenues to be received during the PILOT term of this project and a $6,278,420 benefit to the company. When the two (2) year ramp‐up is complete, this facility will act as the training center for the entire organization.

PILOT Term:

12

Projected New Jobs:

62

Projected Retained Jobs:

141

Total Jobs:

203

Projected Average Payroll of New Jobs:

$54,715

Projected Average Payroll of Retained Jobs:

$54,715

Annual New Direct Payroll:

$3,392,330

Annual Retained Direct Payroll:

$7,714,815

Total Capital Investment:

$27,810,000
Real Property Investment:
$22,100,000

Personal Property Investment:
$1,390,000

Community Reinvestment Credit (CRC):
Not applicable

Capital Investment not in PILOT:
$4,320,000

Projected Tax Revenue:

$11,662,339

Projected Taxes Abated:

$6,181,812
City: $2,705,040 (25%)
County: $3,476,772 (25%)

Benefit/Cost Ratio:

1.86

Projected MWBE/LOSB Spending:

$6,255,732

Incentive Provided:

$6,278,420

Compliance Information

Not applicable

Approved

6/15/2016

Ramp up Period

2 years

Closing

12/31/2017 (Real)
12/31/2017 (Personal)

Effective

12/31/2017

Lease Begins

12/31/2017 (Real)
12/31/2017 (Personal)

Lease Expires

12/31/2029 (Real)
12/31/2031 (Personal)

Amended

Not applicable

Property Details

Lease Began

12/31/2017 (Real)
12/31/2017 (Personal)

Lease Expires

12/31/2029 (Real)
12/31/2031 (Personal)

TAG Truck Enterprises, LLC

4450 American Way, Memphis , TN 38118