Ebrofrost North America, Inc. Expands Planned Project
After previous approval by the EDGE Board in April 2017 for a JOBS PILOT, Ebrofrost North America, Inc.’s PILOT agreement was amended to include an increase of Net New Jobs with a higher annual salary component, an increase in occupied building percentage, and an increase in real property investment.
With the new amendment, Ebrofrost North America, Inc. was awarded an eight-year JOBS PILOT to enable to company to create 19 Net New Jobs and invest $26,544,185 in the City of Memphis at 2360 Prospect Street. Germany-based Ebrofrost, the largest rice manufacturer and second largest pasta manufacturer in the world, plans to build a facility that will process and distribute individually quick frozen (IQF) rice, pasta, and grain products and be similar to the company’s European factories. When completed, the facility will be able to produce up to seven tons of frozen ready-to-eat product per hour, 275,000 pounds per day, and 70 million pounds per year.
The EDGE Payment-In-Lieu-Of-Tax program will enable Ebrofrost North America, Inc. to renovate an existing facility in Memphis that fits their needs, construct vital new manufacturing components, and hire new employees. Ebrofrost North America, Inc. will hire 19 new employees with an average annual base salary of $60,654, excluding overtime and benefits. The total project investment includes $7,050,000 to renovate 54,326 square feet of an existing 85,021 square foot building, $3,750,000 to build 24,000 square feet of new space, $250,000 in soft costs, and $13,884,000 for new personal property. Ebrofrost was awarded Community Reinvestment Credit, for the portion of the existing property to be occupied, valued at $1,610,185.
Ebrofrost North America, Inc. has partnered with its sister company Riviana Foods, the largest processor, marketer and distributor of branded and private-label rice products in the U.S., in this endeavor. Riviana Foods owns the property and will lease it to Ebrofrost. Ebrofrost North America, Inc. has opportunities to place this project in Missouri, Minnesota, and Canada, but chose to co-locate with Riviana Foods and access Memphis’ central distribution advantages. In addition to warehouse space, Ebrofrost North America, Inc. will need to build a clean processing area and a flash freezing area as part of the manufacturing operation.
Staff projects $2,036,270 in local total tax revenues to be received during the PILOT term of this project and a $2,668,270 benefit to Ebrofrost North America, Inc.