» Subscribe Today!
More of what you want to know.
The Daily News
X

Forgot your password?
TDN Services
Research millions of people and properties [+]
Monitor any person, property or company [+]

Skip Navigation LinksHome >
VOL. 133 | NO. 58 | Wednesday, March 21, 2018

Onyx, Barrett Distribution Seek Tax Breaks

By Patrick Lantrip

Print | Front Page | Email this story | Email reporter | Comments ()

A medical device manufacturer and a third-party distribution center operator will be seeking tax abatements from the Economic Development Growth Engine for Memphis and Shelby County to expand their respective footprints in the area.

Barrett Distribution Centers, the larger of the two applicants, is seeking an eight-year Jobs PILOT (payment in lieu of taxes) that would allow the company to invest $22.1 million into an existing 6100 East Holmes Road facility creating 74 new jobs with an average salary of $44,217 excluding benefits.

According to its application, the Franklin, Massachusetts-based third-party warehouse and distribution center operator would spend $1.2 million on construction and site improvements, $7.4 million on manufacturing machinery and is requesting a $13.4 million Community Reinvestment Credit that would bring the total investment to $22.1 million.

(Map data ©2018 Google)

Though the 37.4-acre, southeast Memphis parcel currently houses an 823,212-square-foot warehouse, Barrett will only be occupying 414,500 square feet, meaning only a little more than half of the property will be included in the PILOT.

EDGE staff estimates that this project will generate $3.2 million in local total tax revenues during the life of the PILOT while saving Barrett an estimated $2.9 million.

“Activities at this location will include full-carton and individual garment picking, as well as other value-added services,” Barrett’s application stated. The warehousing operation will be for tenant International Clothing Brands, according to application documents.

Barrett Distribution currently operates a similar facility at 4836 Hickory Hill Road and considered sites in three different states before choosing a second Memphis location. The Hickory Hill site is a pick-and-pack operation for several different tenants.

Established in a single warehouse back in 1941, Barrett now has more than 400 employees and 3 million square feet of space across the country, according to its website.

Meanwhile, Onyx Medical is seeking a nine-year Expansion PILOT to expand its 1800 N. Shelby Oaks Drive facility that would retain 116 existing jobs and create 30 net new jobs.

According to its application, Onyx would spend $300,000 to purchase additional land, $4.2 million on construction and site improvements, $2.5 million on manufacturing equipment and is seeking a $3.9 million Community Reinvestment Credit that would bring the total project investment to just under $11 million.

To remain eligible for the PILOT, Onyx must maintain a total of 146 employees with an average salary of $54,939 including overtime pay and bonuses but excluding benefits.

EDGE staff estimates that the expansion would generate $6.4 million in local total tax revenues during the term of the PILOT while saving Onyx about $1.4 million.

(Map data ©2018 Google)

Onyx’s 52,536-square-foot manufacturing facility in Shelby Oaks currently sits on 4.5-acres, but would be expand by two acres and 27,000 square feet, according to the submitted plans.

“The company is poised to grow once more,” Onyx’s application stated. “This growth necessitates a larger facility with new manufacturing equipment.”

Headquartered in Memphis, Onyx Medical is a contract manufacturer of precision medical devices, including wires, guide pins, drills and screws, which was founded in 1990.

Over the last 25 years, the company has expanded locally several times and also has sister operations in Sweden, Denmark and China.

The applications of both Onyx Medical and Barrett Distribution will be reviewed by the EDGE board on Wednesday, March 21.

RECORD TOTALS DAY WEEK YEAR
PROPERTY SALES 74 196 20,828
MORTGAGES 86 244 23,989
FORECLOSURE NOTICES 0 31 3,078
BUILDING PERMITS 138 453 43,046
BANKRUPTCIES 64 174 13,354
BUSINESS LICENSES 21 56 6,678
UTILITY CONNECTIONS 30 82 7,871
MARRIAGE LICENSES 14 59 4,702