‹ Back To Pilot Programs

Walgreen Company

Project Number: 20210501
Pilot Type: Fast Track
Status: Approved
Parcel ID: 094100 00318
County Commission District: 12 | City Council District: 03, 08

Summary

Walgreen Company is seeking a ten-year Fast Track PILOT to enable the company to create 200 Net New Jobs with an average wage of $41,035 and invest $30,000,000 to launch a micro-fulfillment facility in Memphis.

The total project investment includes $7,500,000 to complete buildout of the facility, $22,000,000 for Furniture, Fixtures and Equipment, and $500,000 in soft costs. Community Reinvestment Credit will be awarded.

Parcel 094100 00318 (3299 Tchulatech) is 22.03 acres of land valued at $768,700 and contains a 273,000 square foot partially constructed shell warehouse valued at $5,725,231 based on building permits.

The Applicant will occupy 103,000 square feet of the building or 37.73%. Real property improvements occupied by the Applicant (37.73%) will receive PILOT benefit on a proportional basis and new personal property will receive PILOT benefit.

Walgreens is planning to transform its product delivery model to lower costs related to filling customer orders, improving the customer experience, and expanding delivery services.

This will include creation of a micro-fulfillment facility, a prescription drug warehouse with state-of-the-art technology. This model is expected to increase the speed in which required medications arrive at stores, to lockers for pick-up and directly to customer homes. In addition to the established logistics network serving stores, Walgreens will partner with FedEx and UPS, as well as companies such as Uber and Doordash for direct-to-consumer shipping. The applicant evaluated locations throughout the Central United States before targeting Memphis for this project.

Walgreens is the second largest pharmacy chain in the United States. Founded in 1901, the company has grown to almost 9,300 locations. Today it operates as a subsidiary of Walgreens Boots Alliance Inc., a publicly traded company with revenues of more than $139 billion.

The property to be occupied currently produces $8,406 in City of Memphis and Shelby County property taxes annually. Estimated annual property taxes will average $128,501 during the PILOT term and $384,043 after. Staff projects $11,936,024 in total local tax revenues to be received during the PILOT term of this project and a $3,602,761 benefit to the Applicant.

PILOT Term:

10 Years

Projected New Jobs:

200

Projected Retained Jobs:

Not applicable

Total Jobs:

200

Projected Average Payroll of New Jobs:

$41,035

Projected Average Payroll of Retained Jobs:

Not applicable

Annual New Direct Payroll:

$8,207,000

Annual Retained Direct Payroll:

Not applicable

Total Capital Investment:

$30,000,000
Real Property Investment:
$7,500,000

Personal Property Investment:
$22,000,000

Community Reinvestment Credit (CRC):
Not applicable

Capital Investment not in PILOT:
$500,000

Projected Tax Revenue:

$11,936,024

Projected Taxes Abated:

$3,602,761
City: $1,589,072 (75%)
County: $2,013,689 (75%)

Benefit/Cost Ratio:

3.31

Projected MWBE/LOSB Spending:

$2,415,414

Incentive Provided:

$3,602,761

Compliance Information

Not applicable

Approved

5/19/2021

Ramp up Period

2 Years

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

Walgreen Company

3299 Tchulatech Dr, Memphis, TN 38118