VOL. 129 | NO. 100 | Thursday, May 22, 2014
ABF Freight Receives PILOT for Possible Expansion
By Amos Maki
ABF Freight System Inc. has received a tax break for the proposed expansion of its Memphis facility.
The company was awarded a $4 million, 15-year payment-in-lieu-of-taxes incentive from the Economic Development Growth Engine of Memphis and Shelby County to make the Memphis expansion, which could include the relocation of some operations from Little Rock, Ark., possible.
Founded in 1923, ABF Freight, which operates from 247 service centers in all 50 states, has become a leading third-party logistics and transportation-services provider, with total revenue of around $1 billion in 2013.
The proposed project is centered on ABF's existing facility at 2080 Dunn Ave. and would create a minimum of 283 jobs. The average annual compensation, including benefits, is $107,298.
ABF said it intends to buy two properties on Frisco Avenue north of its Dunn Avenue property and to demolish a building to make way for new construction. ABF’s total capital investment in the project is expected to reach $20.6 million.
ABF did not say the PILOT sealed the deal but that it was crucial for Memphis’ chances.
“The PILOT incentive sought by ABF for the project is an important consideration in ABF’s decision whether to expand its operations in Memphis,” the company said in a statement. “As is usual for any company considering such a project, ABF is considering alternate locations for the expansion of its operating capacity in this part of the country, including possible new locations in northern Mississippi and eastern Arkansas, and at the locations of some of its other existing operations.”