Project Number: 20210103
Pilot Type: Fast Track
Status: Approved
Parcel ID: 094300 00601C
County Commission District: 12 | City Council District: 03, 08

Summary

Ubiquiti Inc. (“Applicant”) was approved for a 10-year Fast Track PILOT to enable the company to build-out space at 6200 Global Drive, create 25 Net New Jobs with an average wage of $39,625 and invest $5,000,000 in the project excluding Community Reinvestment Credit of $5,599,317.

The total project investment includes $2,000,000 for renovation, construction and site improvements, and $3,000,000 for equipment and personal property. Community Reinvestment Credit of $5,599,317 ($317,40 land and $5,281,916 building) has been requested.

Parcel 094300 00601C (6200 Global) is 23.973 acres and contains a 422,176 square foot warehouse. The Applicant will occupy 161,000 square feet of the building or 38.14%. Real property improvements occupied by the Applicant (38.14%) will receive PILOT benefit on a proportional basis and new personal property will receive PILOT benefit.

Ubiqiuti sells technology equipment and provides related software through a global network of more than 100 distributors and online retailers. The company’s products are used for internet access, information technology and consumer electronics. Brand-named products and platforms include airMAX, UniFi and airFiber. The New York based publicly traded company was founded in 2005, has grown to more than $1.3 billion in revenues, and employs and contracts with more than 1,000 people worldwide.

Today, most of Ubiquiti’s sales are made to distributors outside of the United States. However, the company is experiencing rapid growth in direct-to-customer sales in the U.S. This growing business is supported by only one U.S. distribution facility. Ubiquiti is evaluating strategies to better meet growing demand including expansion of its Utah base and new construction projects in North Mississippi, in addition to the Memphis location. This new facility could support from 300 up to 500 unique products ranging from wireless routers and switches to cables and cameras.

The property to be occupied produces $162,290 in City of Memphis and Shelby County property taxes annually. Estimated annual property taxes will average $68,796 during the PILOT term and $203,810 after. Staff projects $1,702,845 in total local tax revenues to be received during the PILOT term of this project and a $1,787,874 benefit to the Applicant.

PILOT Term:

10

Projected New Jobs:

25

Projected Retained Jobs:

Not applicable

Total Jobs:

25

Projected Average Payroll of New Jobs:

$39,625

Projected Average Payroll of Retained Jobs:

Not applicable

Annual New Direct Payroll:

$990,625

Annual Retained Direct Payroll:

Not applicable

Total Capital Investment:

$5,000,000
Real Property Investment:
$2,000,000

Personal Property Investment:
$3,000,000

Community Reinvestment Credit (CRC):
$5,599,317

Capital Investment not in PILOT:
Not applicable

Projected Tax Revenue:

$1,702,845

Projected Taxes Abated:

$1,787,874
City: $788,581
County: $999,293

Benefit/Cost Ratio:

0.95

Projected MWBE/LOSB Spending:

$768,181

Incentive Provided:

$1,787,874

Compliance Information

Not applicable

Approved

1/20/2021

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

Ubiquiti Inc.

6200 Global Drive, memphis, TN 38141