EDGE Assists Two Projects Set to Provide More Than 600 Jobs
Local Manufacturer Born Out of the Pandemic and Global Distributor Would Invest More Than $41 Million in Memphis
Memphis, Tenn. (October 21, 2020) – Two projects approved today by EDGE would see companies expanding in or moving to Memphis, leading to more than 600 jobs for the city.
Pristex Solutions LLC
Pristex Solutions, LLC is looking to set up its manufacturing operation in Memphis, creating more than 430 jobs.
The company was created to serve Pristex Medical, which launched amid the pandemic in May to handle the sales and distribution of Personal Protective Equipment to high volume buyers like hospitals. That business grew so much that there is now a need for additional manufacturing.
Pristex Solutions has been evaluating locations in Texas, Mississippi and Tennessee for the facility that will produce commercial and household cleaning products and disinfecting wipes. EDGE provided the company with a 13-year Jobs PILOT to encourage it to create 439 new jobs with an average wage of about $35,000 a year and invest more than $11 million at 4259 Delp Street here in Memphis.
Estimated annual property taxes would be $47,333 during the PILOT term and $144,017 after the PILOT. The project would create more than $28 million in total local tax revenues during the PILOT term and a $1.5 million benefit to Pristex.
- 13-Year Jobs PILOT
- 439 New Jobs With An Average Salary Of $34,644
- $11,608,422 Investment
- $28,537,950 in Tax Revenue
- $682,989 in Spending With Minority/Women-Owned Businesses
Arvato Digital Services LLC
Arvato Digital Services, a third-party logistics service provider with 85 locations across the globe has been working with Smith+Nephew to modernize its distribution facilities and network. They have been evaluating locations throughout Arvato's and Smith+Nephew's network, including locations in Louisville, where Arvato has efficiencies, and Atlanta, where Smith+Nephew has another distribution facility.
EDGE provided an 11-year Expansion PILOT to encourage the company to retain 180 existing jobs and create six new jobs with an average wage of $56,000, and invest more than $30 million to purchase and expand a distribution center at 3303 East Holmes Road. While Arvato is new to the Memphis market, this project would provide service to Smith+Nephew and was evaluated under the EDGE Expansion PILOT.
This PILOT would allow the company to acquire the property, expand and modernize the facility, and combine Smith+Nephew’s Memphis and Atlanta distribution into one location, while maintaining Memphis jobs, adding new positions and increasing employee wages.
Today, this location produces $71,000 in annual property taxes. During the term of the PILOT this will increase to $285,000. After the PILOT incentive expires, it will produce more than $500,000 a year in total property taxes. The project would create more than $10 million in total local tax revenues during the PILOT term of this project and a $3.6 million benefit to Arvato.
- 11-Year Expansion PILOT
- Create and Retain 186 Jobs at an Average Salary of $55,998
- $30,257,475 Investment
- $10,924,857 in Tax Revenue
- $2,324,270 in Spending With Minority/Women-Owned Businesses