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Target Corporation

Project Number: 20141201
Pilot Type: Standard/Basic
Status: Terminated
Parcel ID: 094200 00494
County Commission District: 11 | City Council District: 3

Summary

Target Corporation was awarded a 15-year PILOT that will encourage the company to establish a fulfillment center with 462 Net New jobs with an average annual salary of the new employees will be $28,456 at 5461 Davidson Road.

Target Corporation is an American retail company founded in 1902 and headquartered in Minneapolis, Minnesota. Target is the third largest discount retailer in the United States and was ranked 36th on the fortune 500 as of 2013. Target operates 1,916 stores in the United States and employs more than 300,000 people in the United states and Canada.

Target will invest $52,280,045 in real and personal property improvements and receive $16,839,500 in Community Reinvestment Credit (CRC) at the 5461 Davidson Road facility. Target Corporation will occupy 100 percent of the 913,940 square foot building.

The PILOT Sponsor (fee owner) is Memphis Industrial Park Investors Inc.

In addition, Target will receive an EDGE grant in the amount of $150,000 to be administered by the Workforce Investment Network (WIN) and used for on the job training (OJT) if/when WIN’s initial OJT commitment is exhausted.

The Project will create $27,262,007 in new tax revenue for Memphis and Shelby County and has a benefit/cost ratio of $2.24 of new tax revenue for every $1.00 of abated taxes.

THE TARGET PILOT AGREEMENT WAS TERMINATED FEBRUARY 8, 2018.

PILOT Term:

15 years

Projected New Jobs:

462

Projected Retained Jobs:

Not applicable

Total Jobs:

462

Projected Average Payroll of New Jobs:

$28,456

Projected Average Payroll of Retained Jobs:

Not applicable

Annual New Direct Payroll:

$13,146,672

Annual Retained Direct Payroll:

Not applicable

Total Capital Investment:

$69,119,545
Real Property Investment:
$3,355,000

Personal Property Investment:
$48,925,045

Community Reinvestment Credit (CRC):
$16,839,500

Capital Investment not in PILOT:
Not applicable

Projected Tax Revenue:

$27,262,007

Projected Taxes Abated:

$12,171,125
City: $5,318,782 (75%)
County: $6,852,343 (75%)

Benefit/Cost Ratio:

2.24

Projected MWBE/LOSB Spending:

$12,198,000

Incentive Provided:

$12,171,125

Compliance Information

Not applicable

Approved

12/17/2014

Ramp up Period

2 years

Closing

9/2/2015 (Real)
12/31/2015 (Personal)

Effective

Not applicable

Lease Begins

9/2/2015 (Real)
12/31/2015 (Personal)

Lease Expires

9/2/2030 (Real)
12/31/2030 (Personal)

Amended

Not applicable

Property Details

Lease Began

9/2/2015 (Real)
12/31/2015 (Personal)

Lease Expires

9/2/2030 (Real)
12/31/2030 (Personal)

Target Corporation

5461 Davidson Road, Memphis , TN 38118