VOL. 132 | NO. 35 | Friday, February 17, 2017
NuVasive Receives 11-Year PILOT, Will Invest $116 Million
By Patrick Lantrip
Medical device company NuVasive Inc. has been approved for an 11-year tax incentive that will allow them to invest $116 million into their southeast Memphis facility and create 15 net new jobs.
The Economic Development Growth Engine board approved the Jobs PILOT (payment-in-lieu-of-taxes) incentive at its Wednesday, Feb. 15, meeting.
San Diego-based NuVasive plans to spend $115 million on new surgical and computer equipment and $700,000 on renovations to its regional office and distribution center at 4670 E. Shelby Drive. The average salary of the 15 new jobs will be $38,000.
“We always get excited about new projects coming to town,” said EDGE board member Larry Jackson. “But I want us to be just as excited when an existing success story wants to expand in Memphis and Shelby County.”
If NuVasive invests an additional $38 million within four years, for a total capital investment of $155 million, the company will receive a one-year extension on its PILOT.
NuVasive is the third-largest medical device company in the global spinal industry, selling in more than 30 countries. The company, which employs about 1,600 people worldwide, posted revenues of $811 million in 2015.
In 2006, the company received a six-year PILOT, eventually extended to eight years, to open its Memphis facility – a project that resulted in more than $120 million in capital investments and created 110 jobs.
Then in 2012, NuVasive was awarded a 10-year PILOT for a $75 million expansion of its facility that added 17 new jobs.
According to EDGE documents, they exceeded capital investment requirements and netted 163 new jobs as a result of the PILOTs.
The EDGE board also voted Wednesday to create a small-business lending program called the EDGE Impact Fund.
The new $1.25 million fund will grant loans to small business in Shelby County of $125,000 or more through a partnership with the National Development Council’s Grow America Fund. EDGE will capitalize $250,000 and GAF will capitalize $1 million.
“We believe that NDC’s experience will allow us to bring a new economic development tool to small business throughout Shelby County consistent with our strategic plan, which calls for us bringing new tools online,” said EDGE president and CEO Reid Dulberger.
EDGE staff will be responsible for marketing and gathering the applicants, who will present their case to the Economic Development Finance Committee. Once the EDFC makes its recommendation, it will be up to GAF to underwrite, approve, close and service all loans.