Nike Buys Frayser Land From Belz for Expansion
Nike Inc. has paid $2.2 million for about 200 acres of vacant land in Frayser from Belz Investco GP for an expansion of its North Memphis distribution center.
Operating in the transaction as Nike TN Inc., the Beaverton, Ore.-based sports giant bought the land in two parcels – a 162.5-acre tract and a 38.4-acre tract, both north of Nike’s 1.1 million-square-foot facility in Belz Enterprises Inc.’s Northridge Industrial Park.
The sale closed Jan. 24, and no financing was associated with the transaction.
The land is classified as farm, according to the Shelby County Assessor of Property. The larger tract has a 2012 appraised value of $428,700; the smaller has a 2012 appraised value of $201,200.
The board of the Memphis and Shelby County Economic Development Growth Engine approved last October a 15-year payment-in-lieu-of-taxes (PILOT) agreement with Nike for the $301 million project.
According to the approved PILOT, the expansion would retain 1,600 jobs and add 250 more once the expanded facility opens, said Willie Gregory, Nike director of Community and Business Relations.
The PILOT amounts to a $57.8 million tax break with a local tax benefit of $105.3 million in return. The benefit-cost ratio is $1.82 in revenue for every tax dollar abated.
The addition to Northridge would be a supply chain logistics distribution center. With such an addition in Frayser, Nike would move out of space it has been leasing at 8400 Winchester Road. Employees from Winchester would move to the Frayser addition of 1.8 million square feet.
Nike’s 1,700 employees across Memphis are the company’s second largest workforce in the U.S. behind only its Beaverton headquarters.
Source: The Daily News Online & Chandler Reports
– Daily News staff
UPS Quarterly Results, 2013 Outlook Miss Estimates
United Parcel Service Inc. says weak global trade and a disappointing holiday-shopping season slowed it down in the fourth quarter.
Profit in the last three months of 2012 fell short of Wall Street expectations. So did UPS’ outlook for this year as the company took a cautious approach toward the global economy.
UPS also forecast a “relatively flat” first quarter.
Shares dropped 2 percent.
“Overall we still see 2013 as a slow-growth economy,” Chairman and CEO D. Scott Davis said Thursday on a conference call with analysts.
Davis said Europe was more stable than a year ago, and “in the U.S., I think we got off to a strong start in January.” But, he added, “We’re not banking on a robust economy.”
The Atlanta-based company said it expects 2013 adjusted earnings of between $4.80 and $5.06 per share. That would be an increase of 6 percent to 12 percent over 2012, but less than the $5.13 per share that analysts expected. UPS said the first quarter would be fairly flat, hurt by one less business day than in 2012.
UPS said that it lost $1.75 billion in the fourth quarter because of a $3 billion charge for pension liabilities, compared with a profit of $725 million a year earlier. Without the pension-accounting charge, UPS said that it would have earned $2.05 billion, or $1.32 per share.
Analysts expected adjusted earnings of $1.38 per share, according to FactSet.
Revenue rose 3 percent to $14.57 billion, beating analysts’ forecast of $14.48 billion.
The company said that disruptions from Hurricane Sandy lowered earnings by 5 cents per share and money spent on the failed pursuit of Dutch delivery firm TNT Express NV cost another penny per share.
UPS increased its plan for spending on buying back its own stock this year to $4 billion from $1.5 billion.
– The Associated Press
Supermarket Wine Bill Excludes High-Alcohol Beer
A proposal to allow supermarkets and convenience stores to stock wine would continue to limit sales of high-alcohol beer and fortified wines to liquor stores.
State Sen. Bill Ketron of Murfreesboro and fellow Republican Rep. Jon Lundberg of Bristol on Thursday introduced their bill to end the exclusive right of liquor stores to sell wine in Tennessee. Grocery store sales would be limited to wine with an alcohol content of no more than 18 percent.
The measure would put the option of whether to allow wider wine sales to voters in local cities and counties. The Republican House and Senate speakers support the change.
Opponents argue the change would unfairly disrupt the existing liquor stores business, and that the measure would make higher-alcohol drinks more widely available to minors.
– The Associated Press
New Memphis Institute Partners With Realtors
The Memphis Area Association of Realtors Education Foundation has partnered with New Memphis Institute to offer a leadership training customized specifically for MAAR members.
The Leadership MAAR program is designed to build and develop personal leadership skills, enhance those skills through teamwork and management, and inspire participants to share their newly acquired leadership abilities with the Association and their communities.
Carol Lott, past president of MAAR, is the brainchild behind the Leadership MAAR program. She said Realtors are “ambassadors for this city” and need to be trained to be confident in that role.
The effort with MAAR helps New Memphis Institute continue to train leaders across all sectors of city to forge a vital and prosperous new Memphis.
The Leadership MAAR program kicks off Feb. 13.
For more information on Leadership MAAR visit http://www.maar.org/leadershipmaar.
– Sarah Baker
Private Waste Hauler, Union Settle Dispute
Union employees of a private waste disposal company are back on the job in Memphis, ending a two-day work stoppage.
Republic Services/Allied Waste Services General Manager Roger Lawrence said the company received a letter Wednesday from the Teamsters Union Local 984, stating the 180 striking employees would return for the regular shifts on Thursday.
Lawrence also said the union agreed to work on the weekend, to catch up trash collection for 200,000 residential customers and 10,000 business customers in the Memphis area.
The agreement followed a meeting between company and union representatives.
– The Associated Press
Memphis Attorney Named to American Bar Association Committee
Memphis attorney Tanja Thompson has been elected to a two-year term as the management co-chair of the American Bar Association’s Committee on the Development of the Law Under the National Labor Relations Act.
That committee is responsible for drafting and publishing the authoritative treatise on labor law, “The Developing Labor Law: the Board, the Courts and the NLRA.”
Thompson is a shareholder in the Memphis office of Littler Mendelson PC., a labor and employment firm exclusively devoted to representing management.
– Andy Meek
Jobless Aid Applications Rise to 368,000
The number of Americans seeking unemployment aid rose sharply last week but remained at a level consistent with moderate hiring.
Weekly applications for unemployment benefits leapt 38,000 to a seasonally adjusted 368,000, the Labor Department said Thursday. The increase comes after applications plummeted in the previous two weeks to five-year lows. Applications fell by a combined 45,000 in the second and third weeks of January.
The volatility reflects the government’s difficulty adjusting the data to account for layoffs after the holiday shopping season. Job cuts typically spike in the second week in January as retailers dismiss temporary employees hired for the winter holidays. Layoffs then fall in the second half of the month.
The department attempts to adjust for such fluctuations but the January figures can still be volatile. The four-week average, a less volatile measure, ticked up to 352,000, just above a four-year low.
Most economists weren’t concerned by the increase.
– The Associated Press