The Industrial Development Board had its last meeting on Wednesday and the agenda was packed full. Six companies were there to present their applications for PILOTs (Payment in lieu of taxes) to bring new jobs, new capital investment and retain the people they currently employ.

This particular meeting was not only important for the IDB members who were meeting for the last time but also for the Greater Memphis Chamber’s economic development team led by Senior Vice President, Mark Herbison. At this one meeting, there were six companies going up before the board whereas in some previous years (2008, 2010) six companies made up the agenda of the entire year at the IDB. This jump in numbers is indicative that Memphis’ string of successes is continuing.

Here is a run-through of what each company received approval for:
• A four-year PILOT for Jordan Aluminum for a $7.2 million expansion, 17 new jobs, retaining 46 jobs. Jordan Aluminum is planning to construct a new facility.

• An eight-year PILOT for Memphis Specialized Operations and Memphis Specialized Laboratory for a $21 million project at the University of Tennessee-Baptist Memorial Healthcare Research Park. There will be 22 new jobs. This company is a start-up lab which will attract new companies in the area that need a facility to do research. Because of the expensive nature of this type of facility (over $800 per square feet) incentives are necessary to establish the business and to offer competitive rates for research to attract new biomedical companies to Memphis.

• A 15-year PILOT for Pennakem for a $28 million project, 49 new jobs and retention of 96 jobs. Pennakem, part of a global corporation, is active in the production and sale of chemicals supporting the agrichemical, pharmaceutical and other industrial markets. Pennakem has been located in Memphis since 1942.

• An eight-year PILOT for Trane to offset the cost of a $15 million investment in a new warehouse and distribution facility. They moved their operations to Mississippi years ago and now want to invest back in Memphis. This PILOT will support 146 new jobs. Trane is an industry leader in indoor air quality and has 29 manufacturing facilities worldwide. Their proposed expansion in Memphis includes a warehouse and distribution facility.

• And an 11-year PILOT for Praxair for a new air separation and storage facility at Pidgeon Industrial Park. Praxair, a Fortune 300 company, is the largest industrial gases company in North and South America The potential expansion would bring 25 new jobs, retain 4 jobs and bring in $46.4 million investment.

• A 12 year retention PILOT for McKesson which will retain 246 jobs, a $62 million investment with $8 million in local property taxes being abated. McKesson, a Fortune 500 company had distribution operations in Memphis since the 1940’s and is one of the oldest and largest health care service companies in the US. The company employs over 800 people in Memphis.

The IDB disbanded to make way for the new Memphis-Shelby County economic development board called E.D.G.E. (Economic Development Growth Engine) which will encompass what the mission of the IDB along with other economic development boards and commissions.

Related Links:
Memphis Fast Forward
Memphis Business Journal: EDGE To Be New Economic Development Engine For City-County
Shelby County Governement
City of Memphis