More Jobs Coming to Memphis

The Memphis-Shelby County Economic Development Growth Engine (EDGE) board recently met on Wednesday, Dec. 21 to grant a 15-year tax freeze to Valero Energy Corp. provided that the company follows along with planned investments and upgrades to its Memphis facility totaling more than $298 million over the next five years. In a statement on the refinery’s importance to local operations, Valero spokeswoman Lisa Wheeler noted that it is a direct supplier of Memphis International Airport, as well as the only refinery in Tennessee. Aside from saving Valero nearly $26 million in local taxes, the company will also, during the payment-in- lieu-of-taxes period, generate about $54 million in revenue for the city and county while maintaining hundreds of local jobs. EDGE board member and SunTrust Bank Memphis

President and CEO Johnny Moore was particular about preserving middle-income jobs in his move forward with Valero’s application.

 

Another company, AB Mauri Fleishmann’s (ABMF), which has had a Memphis-based facility for over 20 years manufacturing and selling fresh, instant, and active dry years and other bakery ingredients, similarly applied for a PILOT at the Dec. 21 meeting, but their application was postponed until January. In regards to its facility at 2743 Riverport Road, ABMP hopes “to have its operating costs [lowered to] approximated those of its competitors.” Also on the drawing board for the company is a planned $16.5 million investment at its plant. The PILOT would save the company about $854,000 in taxes, and during the period would generate almost $3 million in revenue for the city and county. The company also projects both job creation and preservation upon a grant by EDGE.

 

This is great news for Memphis.  Jobs are coming from all over.   Valero, Electrolux and Mitsubishi are all bringing jobs to the Memphis market and are getting tax incentives to do so.  The government in Memphis seems to be pulling out all of the stops to bring more jobs to the market.  Great news for Memphis real estate investors!