VOL. 115 | NO. 114 | Friday, June 15, 2001
By SUE PEASE
New jobs to rise from yeast facility
By SUE PEASE
The Daily News
A tax freeze application for a $21.8 million project will be considered by the Industrial Development Board at its meeting next week.
Lallemand/American Yeast Division is a subsidiary of Lallemand Inc., a privately held Canadian company specializing in the production and sale of yeast and bacteria. The company is planning to build a 75,000-square-foot manufacturing facility on six acres of vacant land adjacent to a Memphis sewer treatment facility at 2303 N. Second St.
"We looked at quite a few cities up and down the river," said a Lallemand/American Yeast Division spokesman.
"This will give us a manufacturing presence in the center of the country."
The central location, access to the Mississippi River and work force were key issues, the spokesman said. The professional reception the company received while working with city and county government agencies, the Chamber of Commerce and Memphis Light, Gas and Water clinched the deal.
"They were exceptional to work with," he said.
Lallemand/American Yeast Division has requested a payment-in-lieu-of-taxes from the IDB.
The IDB meeting begins at 3 p.m. Wednesday in Conference Room A on the fourth floor of Memphis City Hall, 125 N. Main St.
The project graded out to a seven-year full tax assessment freeze on real and tangible personal property involved in the project.
According to the PILOT application, the project will provide 48 full-time jobs over the next three years.
The median wage for the newly created jobs would be $27,500, which is 94 percent of the current Shelby County per capita income of $28,984.
According to the application, Lallemand/American Yeast Division plans to make a total investment of $21.8 million, which breaks down to $3.3 million for land and site development, $3.5 million for real property and $15 million for personal property.
According to the PILOT application, the project is expected to produce a seven-year revenue impact of $2 million in new taxes generated by employees wages and by construction and equipment installation.
If approved, $1.7 million in taxes would be abated over the life of the PILOT.
The company plans to begin construction at the site in August, according to the PILOT application.
The project is expected to be complete in two years, a company spokesman said.
Lallemand Inc. has two major divisions: North American Bakers Yeast and Ingredients, based in Chicago, and Specialty Yeast and Bacteria, based in Toulouse, France. Administrative offices for the parent company are in Montreal.