‹ Back To Pilot Programs

Technicolor Videocassette of Michigan, Inc.

Project Number: 20171202
Pilot Type: Expansion
Status: Approved
Parcel ID: 09420000546
County Commission District: 5 | City Council District: 3

Summary

Approved by the EDGE Board in December 2017. The project was Amended and Restated on March 21, 2018.

Technicolor Videocassette of Michigan, Inc. (Technicolor) was awarded a 15-year Expansion PILOT. Technicolor will make up to $14 million in new capital investment.

Founded in 1910, Technicolor is a worldwide technology leader in the media and entertainment sector and is at the forefront of digital innovation. Technicolor’s cutting-edge research and innovation laboratories lead the market in delivering advanced video services to content creators and distributors. Headquartered in France, Technicolor employs more than 17,000 people worldwide.

Technicolor was considering alternate locations in Huntsville, AL, La Vergne, TN, and Fayette County, TN. The EDGE Board approved four different scenarios to work to retain Technicolor in Memphis and Shelby County as Technicolor was making long term plans for its Memphis operations.

Technicolor chose a PILOT scenario included the $13 million purchase of equipment including, furniture, fixtures, and computer equipment. Additionally, the Applicant will invest $1 million for tenant improvements at 4 facilities in Memphis and Shelby County.

The average annual base salary for the 916 support staff is $46,085 excluding benefits.
The average annual wage of the 1,338 Non-PILOT contract workers is $21,840 excluding benefits. The average annual wage of the 153 Non-PILOT employees is $21,367 excluding benefits.

Parcel I.D. #094200 00546 (5215 Lamar Ave) is 39 acres and improved by a facility that is approximately 789,291 square feet.

Parcel I.D. #094100 00179 (4010 Holmes Road) is 39.5 acres and improved by a facility that is approximately 806,000 square feet.

Parcel I.D. #094100 00172C (4155 Holmes Road) is 64.4 acres and improved by a facility that is approximately 922,500 square feet.

Parcel I.D. #093700 00534C and #094300 00569 (collectively 4926 Southridge BLVD) is 25.6 acres and improved by a facility that is approximately 640,000 square feet.

The applicant will receive Community Reinvestment Credit benefit for $101,209,400 of existing building improvements as part of its Capital Investment.

Staff projects $63,228,810 in local total tax revenues to be received during the PILOT term and a $35,318,146 benefit to the Applicant.

PILOT Term:

15

Projected New Jobs:

Not applicable

Projected Retained Jobs:

916

Total Jobs:

916

Projected Average Payroll of New Jobs:

Not applicable

Projected Average Payroll of Retained Jobs:

$46,085

Annual New Direct Payroll:

Not applicable

Annual Retained Direct Payroll:

$42,213,860

Total Capital Investment:

$151,209,400
Real Property Investment:
$1,000,000

Personal Property Investment:
$16,977,321

Community Reinvestment Credit (CRC):
$101,209,400

Capital Investment not in PILOT:
$32,022,679

Projected Tax Revenue:

$63,692,835

Projected Taxes Abated:

$35,342,542
City: $15,663,858 (75%)
County: $19,678,684 (75%)

Benefit/Cost Ratio:

1.80

Projected MWBE/LOSB Spending:

$5,551,381

Incentive Provided:

$35,342,542

Compliance Information

Not applicable

Approved

12/20/2017

Ramp up Period

2

Closing

4/30/2018 (Real)
12/31/2018 (Personal)

Effective

4/30/2018

Lease Begins

4/30/2018 (Real)
12/31/2018 (Personal)

Lease Expires

5/1/2033 (Real)
12/31/2035 (Personal)

Amended

3/21/2018

Property Details

Lease Began

4/30/2018 (Real)
12/31/2018 (Personal)

Lease Expires

5/1/2033 (Real)
12/31/2035 (Personal)

Technicolor Videocassette of Michigan, Inc.

5215 Lamar Ave, Memphis, TN 38118