VOL. 11 | NO. 29 | Saturday, July 21, 2018
Trucking Firm Seeks PILOT to Relocate HQ to Vacated American Way Strip Center
Daily News staff
The vacated Circuit City on American Way could become the corporate headquarters of a Memphis-based trucking company that serves FedEx, Amazon, Walmart and other major retailers.
JNJ Logistics LLC is seeking a 15-year payment-in-lieu-of-taxes incentive to move from the Getwell Road location it has outgrown and invest $20.5 million to redevelop a former electronics store and shopping center on American Way into its new corporate headquarters.
The company is scheduled to appear before the Economic Development Growth Engine for Memphis and Shelby County board Wednesday, July 25.
JNJ Logistics LLC is seeking a 15-year payment-in-lieu-of-taxes incentive to move and invest $20.5 million to relocate its corporate headquarters. (Submitted)
The 15-year tax break would enable JNJ to establish a new corporate headquarters, operations center, vehicle maintenance facility and on-site warehouse at 5000 and 5050 American Way.
The move would retain 290 existing employees and create 222 net new jobs.
The trucking company, which provides brokerage services, shuttling and just-in-time delivery, is planning to purchase the property for $1.3 million and the buildings for about $673,000. The project would include $7.1 million in renovations and $9.7 million in new construction.
The new headquarters would reinvigorate the shopping center, which has been blighted for more than 10 years, and create a multifunctional logistics complex including more than 150 management, accounting and IT employees, nearly 40 maintenance and warehouse employees and more than 325 Memphis-based truck drivers.
The 15-year PILOT would save JNJ about $5.8 million in Shelby County and Memphis property taxes, but since the property is underutilized, EDGE staff projects more than $35.5 million in local tax revenues would be received over the 15 years.
The EDGE board will also consider establishing a tax increment financing district for the Poplar Corridor Business District. More details about the Poplar Avenue TIF will be reported when public documents are made available.