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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 was approved for a ten-year Fast Track PILOT to launch a micro-fulfillment facility in Memphis, creating 200 new jobs paying an average wage of $41,035 and investing $30,000,000.

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.

The project will be located at 3299 Tchulatech (Parcel 094100 00318), a 22-acre site containing a 273,000 square foot partially constructed shell warehouse. The Applicant will occupy 103,000 square feet of the building. Real property improvements occupied by the Applicant will receive PILOT benefit based on the proportion of the building they occupy. Any new personal property will receive 100% 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.

The project 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.

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