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VOL. 9 | NO. 30 | Saturday, July 23, 2016

TAG Expects Truck Facility to be Operational by Mid-2017

By Madeline Faber

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TAG Truck Center is moving forward with a $28 million trucking facility at the former site of the Mall of Memphis. Contractor Linkous Construction Co. recently filed two building permits for TAG’s new headquarters.

The first permit is valued at $16.7 million for a distribution and training center at 4430 American Way. The other permit is valued at $6.8 million for construction of a parts and service center at 4450 American Way.

TAG Truck Center plans to open its $28 million trucking facility by next July.

(Daily News File/Andrew J. Breig)

Brennan Whalin, project manager with architect Fitzgerald and Associates, said that the facility could be up and running by July 2017.

The parts and service center will be 157,000 square feet and will house trucks and parts for both sales and storage.

“Basically it’s a sales facility for heavy commercial trucks and some lighter utility type trucks,” Whalin said, adding that trucks needing maintenance will be able to undergo diagnostics and repair in the same building. TAG also manages truck fleets for major Memphis companies such as AutoZone, FedEx Freight and FedEx Express.

The smaller distribution and training center will be 25,795 square feet. The building will house a call center as well as the TAG Technical Institute where truck technicians will be certified. The call center will fulfill orders for parts needed by freight liner vehicles.

The construction permits were processed nearly a month after the Memphis-Shelby County Economic Development Growth Engine approved a 12-year tax abatement for TAG’s development.

With the tax incentive, TAG Truck Center will consolidate its five facilities across Tennessee and West Memphis to the Mall of Memphis site at the corner of American Way and I-240.

“We’ve just been trying to understand how they function and do that under two roofs instead of five,” Whalin said.

The move will create 62 jobs and retain 131 jobs with an average wage of $54,700.

The 113-acre parcel has been under question since the mall was demolished in 2004. Most recently, Huntington Industrial Partners and Johnson Development Associates had planned a $112.7 million speculative industrial park for the site, a plan that hinged on a 15-year tax break from EDGE. Last September, the EDGE board tabled its vote for the second time in a row, effectively sending the message that the developers were not going to receive the PILOT.

In late 2015, Johnson Development Associates sold the Mall of Memphis land to TAG Real Estate Holdings LLC, an affiliate of TAG Truck Center.

Bringing the vacant land back into productive use will bring $11.6 million in total tax revenues, EDGE staff projects.

TAG will only use 34 of the site’s 113 acres to construct a new 182,795-square-foot facility. The remaining acres will be likely sold or leased to businesses that complement the project. TAG owns and operates its facilities across Tennessee, Arkansas and Mississippi and is looking to sell those five properties.

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