EDGE Aids Expansion, Job Creation at a 73-Year-Old Memphis Company, and Development of a Long Vacant Site Near Fairgrounds
Memphis, TN (May 20, 2020) – After 73 years in business, Memphis-based personal care product manufacturer, Ampro Industries is planning a major expansion to serve a new and growing base of customers.
EDGE awarded the company a four-year Jobs PILOT to encourage it to create 15 new jobs with an average salary of more than $32,000 and invest $6 million for new manufacturing machinery at its 4171 Steele Street location. The expansion will allow Ampro to double its production speed, allowing the company to remain in its Frayser plant.
Ampro has been successfully developing new product lines and expanding to new markets but the increased demand has pushed production to its limit with current capacity. This new investment will allow the company to modernize old production lines and install new lines.
The project will generate more than $450,000 in local tax revenues during the PILOT term.
Central Junction, LLC
After years sitting as an empty field, a plot of land on Central, just East of the Liberty Bowl and Fairgrounds, could soon welcome new residents to this growing area.
EDGE awarded Central Junction, LLC, a 15-year Residential PILOT to encourage the company to build a 127-unit apartment building, investing more than $20 million at 2601 Central Avenue.
"This project will bring new life to a long vacant site and complement the City’s investment in the Memphis Fairgrounds Redevelopment," said EDGE President and CEO, Reid Dulberger. "The residents will be just steps from the Fairgrounds and will no doubt frequent the shops and sports complex planned for that area, creating a vibrant community."
Today, this property produces just $11,107 a year in property taxes. This project would increase that to $130,117 a year during the term of the PILOT and to $481,617 a year in property taxes after the PILOT. Total local tax revenue during the term of the PILOT is expected to be $2,972,317.
NEED Grant Changes
The board also approved amendments to the NEED Grant policy to provide more clarity around the parameters of the grant. This included:
- Adding the language “Up to $5,000” for closed businesses and “Up to $10,000” for open businesses.
- Modifying language to only allow the award of NEED grant business located in Memphis, with owners who are residents of the Memphis metropolitan statistical area.
- Modifying the language to also include businesses that are contiguous to or adjacent to a New Markets Tax Credit Program Eligible Census Tract.
- Modifying the language to set a floor for the revenue of eligible businesses - "The NEED grant policies shall be amended to require an applicant business to have annual gross revenue of more than $25,000 and less than $1,000,000."
To date, EDGE has approved $137,500 in NEED Grants for 24 businesses that are vital to the lifeblood of their neighborhoods. MWBEs comprise 22 of those businesses.
The Neighborhood Emergency Economic Development (NEED) Grant was created to provide relief to small businesses, located in Memphis’ most vulnerable neighborhoods that have been affected by the COVID-19 outbreak.
Pandrol USA PILOT Amendment
Pandrol USA is moving its North American Headquarters to Memphis from New Jersey. The board approved a 15-year Community Builder PILOT last year to encourage the move. Today, the board approved an amendment to the company’s PILOT to reflect more jobs and more investment:
- An increase in new jobs from 73 to 82
- An increase in average wage from $49,453 to $59,068
- An increase in total capital investment from $9,291,200 to $12,891,200
Per the amendment, the PILOT term would not change. The benefit to the applicant would increase by $800,000 and the benefit to the community would increase by more than $1 million. MWBE spend would increase by more than $600,000.