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VOL. 11 | NO. 15 | Saturday, April 14, 2018

3 Companies Seek Abatements for Memphis Projects

By Patrick Lantrip

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Sports equipment manufacturer Franklin Sports Inc., pharmacy services provider Enclara Pharmacia Inc. and petroleum distributor OMO Energy & Technology Inc. will all make their cases for tax incentives when the Economic Development Growth Engine meets Wednesday, April 18.

Massachusetts-based Franklin Sports Inc. is seeking a six-year Jobs PILOT to build a 250,000- to 300,000-square-foot warehouse adjacent to its Memphis distribution center at 5510 Getwell Road, adding 27 new jobs with an average salary of $39,722, excluding benefits.

Franklin says it anticipates investing between $13.8 million and $16.5 million for the construction, along with another $1.5 million to $2 million in furniture and equipment. In addition, the total payroll for the 27 new jobs would top $1.2 million.

The company currently employs 60 at its Memphis facility, which is its only distribution center in the United States for Franklin retail and e-commerce order fulfillment. Franklin says it has outgrown its 300,000-square-foot warehouse on Getwell and is now using 100,000 square feet of space at 4533 Old Lamar Ave. as an overflow warehouse. A new facility would allow it to consolidate operations onto one campus.

EDGE staff projects the project will generate $1.4 million in local taxes while saving Franklin $1.9 million.

Enclara Pharmacia Inc., meanwhile, is asking for a nine-year Expansion PILOT to invest $11.6 million in its 2525 Horizon Lake Drive facility and retain 216 jobs with an average salary of $53,706, excluding benefits.

The Philadelphia-based company is the largest U.S. provider of hospice pharmacy services and processes more than 3 million prescriptions annually at its Memphis facility, which includes fulfillment and call center operations. The company has operated in Shelby County for more than a decade, previously under the name ExcelleRX.

The proposed project would expand production capacity, replace outdated technology, enhance security and provide continued compliance with Drug Enforcement Agency regulations, according to the company's application.

EDGE staff estimates Enclara's project would generate $7.9 million in local tax revenue and save the company $627,252.

And Lanham, Maryland-based petroleum distributor OMO Energy & Technology Inc. is seeking a 10-year Fast Track PILOT to build a biodiesel plant on President's Island, creating 25 net new jobs with an average salary of $50,866, excluding benefits.

The company plans to invest $3.1 million into a site at 2550 Channel Ave. and 2560 Channel Ave. site, including $895,000 to acquire the property and renovate an existing structure, and $2.2 million to be spent on equipment.

According to EDGE documents, the site would include manufacturing facilities, a quality assurance laboratory, and administrative and sales offices. Using feedstock from glycerin and fatty acids, the plant would blend and package lubricants, motor oils and greases. The products would be stored in 27 to 30 above-ground tanks with a capacity of 30,000 gallons each, and the tanks would be placed in a pit with dykes to protect the site from spills.

EDGE staff projects the incentives would add $1.1 million in city and county tax revenue while saving OMO $299,925 over the term of the PILOT.

Associate editor Kate Simone contributed to this article.

PROPERTY SALES 56 56 9,658
MORTGAGES 49 49 10,665
BUILDING PERMITS 212 212 21,170
BANKRUPTCIES 49 49 6,157