Capital Investment: $ Jobs: 40. Annual Average Wage: $ Local Tax Benefit: $ Benefit/Cost Ratio: 1.23

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1 Company/Applicant: Capital Investment: $ 6,980,000 Jobs: 40 Annual Average Wage: $ 27,368 Recommended PILOT Length: 5 Tax Incentive: $ 1,061,512 Local Tax Benefit: $ 1,302,750 Benefit/Cost Ratio: 1.23 March 7, Year PILOT - Real Property ONLY 1

2 City of Memphis, Shelby County, TN Tax Incentive Eligibility Analysis Category Project Data Points Job Creation Wages* $27, Capital Investment $6,980, CRC $10,101, Location City of Memphis New Market Tax Area 20 Total 45 Special Circumstances (Not to exceed 25% of Total) Grand Total 55 Length of tax incentive: (years) 5 *Wages Calculation Shelby County Annual Average Wage $ 52,189 Project Wages $ 27,368 Project wages as a % of AAW 52 Meets 75% of AAW - Extra Points - Total Points - Special Circumstances: Points Targeted Industry (Logistics) 5 Headquarters 0 Fortune 500/Industry Leader 5 Major Employer 0 Minority/Women-Owned Business 0 Benefit to Cost Ratio Bonus 0 Total 10 March 7, Year PILOT - Real Property ONLY 2

3 City of Memphis, Shelby County, TN Economic Impact and Benefit/Cost Analysis Annual Impact of Operations Operation Employment, Direct (New full-time equivalent jobs) 40 Wages & Benefits, Direct $ 1,384,760 Employment Multiplier Total Employment 78 Employment, Indirect 38 Shelby County Annual Average Wage 2 $ 52,189 Wages, Indirect $ 1,983,182 Total Wages $ 3,367,942 Sales Tax Revenue 3 $ 38,571 Other Tax Revenue 4 $ 11,108 Residential/Commercial Property Tax Revenue 5 $ 70,392 Total Tax Revenue $ 120,071 March 7, Year PILOT - Real Property ONLY 3

4 City of Memphis, Shelby County, TN Economic Impact and Benefit/Cost Analysis One Time Expansion Impact Total Capital Investment $ 6,980,000 Building - Real Property (Improvements) $ 1,050,000 Economic Impact Multiplier Economic Impact $ 2,004,135 Equipment Purchase/Set-up - Personal Property $ 5,930,000 Economic Impact Multiplier Economic Impact $ 10,191,298 Total Economic Impact $ 12,195,433 Sales Tax Revenue 3 $ 58,908 Other Tax Revenue 4 $ 16,966 Total Tax Revenue $ 75,874 March 7, Year PILOT - Real Property ONLY 4

5 Shelby County Tax Schedule Real Property (CRC + Improvements) Real Property (Additional Space) Shelby County Tax Rate: $4.02 % of taxes Taxes Abated % of taxes Taxes Abated Value $ 6,095,175 $ 5,056,288 Year 1 $ 98,010 25% $ 24,503 $ 73,507 Year 2 $ 98,010 25% $ 24,503 $ 73,507 Year 3 $ 98,010 25% $ 24,503 $ 73,507 $ 81,305 25% $ 20,326 $ 60,979 Year 4 $ 98,010 25% $ 24,503 $ 73,507 $ 81,305 25% $ 20,326 $ 60,979 Year 5 $ 98,010 25% $ 24,503 $ 73,507 $ 81,305 25% $ 20,326 $ 60,979 Year 6 Year 7 Year 8 Year 9 25% 25% Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Total $ 490,050 $ 122,515 $ 367,535 $ 243,915 $ 60,978 $ 182,937 March 7, Year PILOT - Real Property ONLY 5

6 City of Memphis Tax Schedule Real Property (CRC + Improvements) Real Property (Additional Space) City of Memphis Tax Rate: $3.11 % of taxes Taxes Abated % of taxes Taxes Abated Value $ 6,095,175 $ 5,056,288 Year 1 $ 75,824 10% $ 7,582 $ 68,242 Year 2 $ 75,824 10% $ 7,582 $ 68,242 Year 3 $ 75,824 10% $ 7,582 $ 68,242 $ 62,900 10% $ 6,290 $ 56,610 Year 4 $ 75,824 10% $ 7,582 $ 68,242 $ 62,900 10% $ 6,290 $ 56,610 Year 5 $ 75,824 10% $ 7,582 $ 68,242 $ 62,900 10% $ 6,290 $ 56,610 Year 6 Year 7 Year 8 Year 9 10% 10% Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Total $ 379,120 $ 37,910 $ 341,210 $ 188,700 $ 18,870 $ 169,830 Total Real Property Taxes Abated: $ 1,061,512 Payments Made in Lieu of Taxes: $ 240,273 March 7, Year PILOT - Real Property ONLY 6

7 Shelby County Tax Schedule Personal Property - Group I Personal Property - Group II Shelby County Tax Rate: $4.02 Depreciation Rate % of taxes Taxes Abated Depreciation Rate % of taxes Taxes Abated Value $ 5,510,000 $ 420,000 Year 1 $ 58, % $ 58,477 $ 3, % $ 3,394 Year 2 $ 49, % $ 49,838 $ 2, % $ 2,685 Year 3 $ 41, % $ 41,864 $ 1, % $ 1,013 Year 4 $ 33, % $ 33,225 $ 1, % $ 1,013 Year 5 $ 25, % $ 25,251 $ 1, % $ 1,013 Year Year 7 Year 8 Year % % Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Total $ 208,655 $ 208,655 $ 9,118 $ 9,118 March 7, Year PILOT - Real Property ONLY 7

8 City of Memphis Tax Schedule Personal Property - Group I Personal Property - Group II City of Memphis Tax Rate: $3.11 Depreciation Rate % of taxes Taxes Abated Depreciation Rate % of taxes Taxes Abated Value $ 5,510,000 $ 420,000 Year 1 $ 45, % $ 45,239 $ 2, % $ 2,625 Year 2 $ 38, % $ 38,556 $ 2, % $ 2,077 Year 3 $ 32, % $ 32,387 $ % $ 784 Year 4 $ 25, % $ 25,704 $ % $ 784 Year 5 $ 19, % $ 19,535 $ % $ 784 Year Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Total $ 161,421 $ 161,421 $ 7,054 $ 7,054 Total Personal Property Taxes Abated: Payments Made in Lieu of Taxes: $ 386,248 March 7, Year PILOT - Real Property ONLY 8

9 City of Memphis, Shelby County, Tennessee Economic Impact and Benefit/Cost Analysis Payback Summary Length of PILOT (years) 5 Total Taxes Forgone $ 1,061,512 Hard Costs $ - Total Taxes Forgone and Hard Costs $ 1,061,512 Tax Revenues From Construction $ 75,874 Tax Revenues From Operations During PILOT Period $ 600,355 Property Tax Revenues Received During PILOT Period $ 626,521 Total Tax Revenues Received During PILOT Period $ 1,302,750 Benefit/Cost Ratio 1.23 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. March 7, Year PILOT - Real Property ONLY 9

10 City of Memphis, Shelby County, Tennessee 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) $ $ $ 49, Total Fees $ 53,076 March 7, Year PILOT - Real Property ONLY 10

Capital Investment: $ Jobs: 20. Annual Average Wage: $ Recommended PILOT Length: (Years) 5. Tax Incentive: $ Local Tax Benefit: $

Capital Investment: $ Jobs: 20. Annual Average Wage: $ Recommended PILOT Length: (Years) 5. Tax Incentive: $ Local Tax Benefit: $ Company/Applicant: Capital Investment: $ 1,900,000 Jobs: 20 Annual Average Wage: $ 43,812 Recommended PILOT Length: (Years) 5 Tax Incentive: $ 381,522 Local Tax Benefit: $ 481,798 Benefit/Cost Ratio: 1.26