VOL. 133 | NO. 79 | Thursday, April 19, 2018
EDGE Approves Trio of Tax Abatements
By Patrick Lantrip
The Economic Development Growth Engine for Memphis and Shelby County approved a trio of tax abatement packages during its Wednesday April 18 meeting.
Massachusetts-based Franklin Sports Inc. was awarded 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 is primarily known for its batting gloves,” Brian Alexander Vice President of Finance and Operations at Franklin Sports said of his company. “Another large component is our inflated products, which are footballs, basketballs, sand soccer balls, but baseball is what Franklin is really known for.”
The sports equipment manufacturer employs 60 workers at its sole North American distribution facility. This is the second time Franklin has outgrown its Memphis operations and currently rents 100,000 square feet of space at 4533 Old Lamar Ave. as an overflow warehouse.
Franklin is planning on spending between $13.8 million and $16.5 million for construction, in addition to another $1.5 million to $2 million in furniture and equipment.
EDGE staff projects the project will generate $1.4 million in local taxes while saving Franklin $1.9 million.
Meanwhile Enclara Pharmacia Inc., was awarded 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.
“We are a mail service pharmacy and clinical call center that services 90,000 hospice patients across the country on a daily basis,” Josh Pear director of pharmacy operations for Enclara said. “Out of the Memphis fulfillment center itself we fill about 12,500 prescriptions every single day that we send out via the FedEx Hub.”
Pear said it made more sense to invest in its Memphis facility over its other location in Sharon Hill, Pennsylvania.
Enclara plans to expand production capacity, replace outdated technology, enhance security and provide continued compliance with Drug Enforcement Agency regulations, according to the company's application.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.
Lastly, OMO Energy & Technology Inc., a Maryland-based petroleum distributor was awarded 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.
The new plant would blend and package lubricants, motor oils, and greases, in addition to housing administrative functions and a quality and assurances laboratory.
“This PILOT really allows me to have more funding so that I can use it to train the population I need in this particular area,” OMO president and CEO Carnelious Jones said.
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.