Capital Investment: $ Jobs: 43. Annual Average Wage: $ Tax Incentive: $ Local Tax Benefit: $ Benefit/Cost Ratio: 1.40

Size: px

Start display at page:

Download "Capital Investment: $ Jobs: 43. Annual Average Wage: $ Tax Incentive: $ Local Tax Benefit: $ Benefit/Cost Ratio: 1.40"

Brett Goodwin
5 years ago
Views:

1 Company/Applicant: National Banker s Trust Capital Investment: $ 6,087,879 Jobs: 43 Annual Average Wage: $ 42,906 Recommended PILOT Length: (years) 4 Tax Incentive: $ 588,649 Local Tax Benefit: $ 824,887 Benefit/Cost Ratio: 1.40 September 16,

2 City of Memphis, Shelby County, TN National Banker s Trust Tax Incentive Eligibility Analysis Category Project Data Points Job Creation Wages* $42, Capital Investment $6,087, CRC** $950, Location City of Memphis 10 Total 40 Special Circumstances (Not to exceed 25% of Total) 10 5 Grand Total 45 Length of tax incentive: (years) 4 *Wages Calculation Shelby County Annual Average Wage $ 52,189 Target Wages (75% of Annual Wage) $ 39,142 Project Wages $ 42,906 Project wages as a % of Target Wage 110 Meets Target Wage 10 Extra Points 4.0 Total Points 14.0 Special Circumstances: Points Targeted Industry 0 Headquarters 5 Fortune 500/Industry Leader 0 Major Employer 0 Minority/WomenOwned Business 0 Benefit to Cost Ratio Bonus 0 Total 5 ** $950,000 is acquisition cost. September 16,

3 City of Memphis, Shelby County, TN National Banker s Trust Economic Impact and Benefit/Cost Analysis Annual Impact of Operations New Jobs Employment, Direct (New fulltime equivalent jobs) 43 Wages & Benefits, Direct 1,991,344 Employment Multiplier Total Employment 107 Employment, Indirect 64 Shelby County Annual Average Wage 2 $ 52,189 Wages, Indirect $ 3,340,096 Total Wages $ 5,331,440 Sales Tax Revenue 3 $ 60,219 Other Tax Revenue 4 $ 17,343 Residential/Commercial Property Tax Revenue 5 $ 75,671 Total Tax Revenue $ 153,233 September 16,

4 City of Memphis, Shelby County, TN National Banker s Trust Economic Impact and Benefit/Cost Analysis One Time Expansion Impact Total Capital Investment $ 6,087,879 Building Real Property (Improvements) $ 5,487,879 Economic Impact Multiplier Economic Impact $ 10,474,715 Equipment Purchase/Setup Personal Property $ 600,000 Economic Impact Multiplier Economic Impact $ 1,031,160 Total Economic Impact $ 11,505,875 Sales Tax Revenue 3 $ 61,196 Other Tax Revenue 4 $ 17,624 Total Tax Revenue $ 78,820 September 16,

5 National Banker s Trust Shelby County Tax Schedule Shelby County Tax Rate: $4.38 Real Property (New Investment) Full Taxes % of taxes paid Taxes Paid after Abatement Taxes Abated Value $ 5,487,879 Year 1 $ 96,148 25% $ 24,037 $ 72,111 Year 2 $ 96,148 25% $ 24,037 $ 72,111 Year 3 $ 96,148 25% $ 24,037 $ 72,111 Year 4 $ 96,148 25% $ 24,037 $ 72,111 Year 5 25% $ $ Year 6 25% $ $ Year 7 25% $ $ Year 8 25% $ $ Year 9 25% $ $ Year 10 25% $ $ Year 11 25% $ $ Year 12 25% $ $ Year 13 25% $ $ Year 14 25% $ $ Year 15 25% $ $ Total $ 384,592 $ 96,148 $ 288,444 September 16,

6 National Banker s Trust City of Memphis Tax Schedule Real Property New Investment City of Memphis Tax Rate: $3.40 Full Taxes % of taxes paid Taxes Paid after Abatement Taxes Abated Value $ 5,487,879 Year 1 $ 74,635 10% $ 7,464 $ 67,171 Year 2 $ 74,635 10% $ 7,464 $ 67,171 Year 3 $ 74,635 10% $ 7,464 $ 67,171 Year 4 $ 74,635 10% $ 7,464 $ 67,171 Year 5 10% $ $ Year 6 10% $ $ Year 7 10% $ $ Year 8 10% $ $ Year 9 10% $ $ Year 10 10% $ $ Year 11 10% $ $ Year 12 10% $ $ Year 13 10% $ $ Year 14 10% $ $ Year 15 10% $ $ Total $ 298,540 $ 29,856 $ 268,684 Total Real Property Taxes Abated: $ 557,128 Payments Made in Lieu of Taxes: $ 126,004 September 16,

7 National Banker s Trust Shelby County Tax Schedule Personal Property (New) Shelby County Tax Rate: $4.38 Full Taxes Depreciation Rate % of taxes paid Taxes Paid after Abatement Taxes Abated Value $ 600,000 Year 1 $ 6, % $ 1,735 $ 5,203 Year 2 $ 5, % $ 1,478 $ 4,435 Year 3 $ 4, % $ 1,242 $ 3,725 Year 4 $ 3, % $ 986 $ 2,956 Year % $ $ Year % $ $ Year % $ $ Year % $ $ Year % $ $ Year % $ $ Year % $ $ Year % $ $ Year % $ $ Year % $ $ Year % $ $ Total $ 21,760 $ 5,441 $ 16,319 September 16,

8 National Banker s Trust City of Memphis Tax Schedule Personal Property (New) City of Memphis Tax Rate: $3.40 Full Taxes Depreciation Rate % of taxes paid Taxes Paid after Abatement Taxes Abated Value $ 600,000 Year 1 $ 5, % $ 539 $ 4,847 Year 2 $ 4, % $ 459 $ 4,131 Year 3 $ 3, % $ 386 $ 3,470 Year 4 $ 3, % $ 306 $ 2,754 Year % $ $ Year % $ $ Year % $ $ Year % $ $ Year % $ $ Year % $ $ Year % $ $ Year % $ $ Year % $ $ Year % $ $ Year % $ $ Total $ 16,892 $ 1,690 $ 15,202 Total Personal Property Taxes Abated: $ 31,521 Payments Made in Lieu of Taxes: $ 7,131 September 16,

9 City of Memphis, Shelby County, Tennessee National Banker s Trust Economic Impact and Benefit/Cost Analysis Payback Summary Length of PILOT (years) 4 Total Taxes Forgone $ 588,649 Hard Costs $ Total Taxes Forgone and Hard Costs $ 588,649 Tax Revenues From Construction $ 78,820 Tax Revenues From Operations During PILOT Period $ 612,932 Property Tax Revenues Received During PILOT Period $ 133,135 Total Tax Revenues Received During PILOT Period $ 824,887 Benefit/Cost Ratio 1.40 Projected Costs: Hard Costs (land, infrastructure, etc.) None. Opportunity Costs Local government is requested to forgo for a period of years the opportunity to collect taxes on site improvement, building, and industrial equipment that are a part of the project. Benefit/Cost Ratio: The sum of tax revenues from construction, operations and property during the PILOT period divided by the total taxes forgone. September 16,

10 City of Memphis, Shelby County, Tennessee National Banker s Trust Estimated Fees Application Fee (Graduated Scale) $ 4,000 Closing Fees (5% of Total Taxes Forgone) (Maximum of $300,000) (Less Application Fee) City of Memphis Personal Property Fees for PILOT (5% of Taxes Abated) (Maximum $50,000) Shelby County Personal Property Fees for PILOT (5% of Taxes Abated) (Maximum $50,000) $ $ $ 25, Total Fees $ 31,008 September 16,

Capital Investment: $ Jobs: 87. Annual Average Wage: $ Tax Incentive: $ Local Tax Benefit: $ Benefit/Cost Ratio: 2.73

Capital Investment: $ Jobs: 87. Annual Average Wage: $ Tax Incentive: $ Local Tax Benefit: $ Benefit/Cost Ratio: 2.73 Company/Applicant: FedEx Supplychain Systems 5050 Holmes Rd Capital Investment: $ 6,820,800 Jobs: 87 Annual Average Wage: $ 31,747 Recommended PILOT Length: (years) 5 Tax Incentive: $ 679,040 Local Tax