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Memphis-Shelby County Economic Development Growth Engine (EDGE) recently approved a new tax incentive package created to give the Memphis area an edge over surrounding markets. The Fast Track PILOT program is intended to spark new industrial warehouse, office, and industrial manufacturing activity in Memphis and Shelby County.
For potential manufacturing and distribution companies relocating to Memphis, the southeast and southwest sub-markets along with the North Memphis area would be ideal development areas,” said Nora Boone, EDGE Director of Marketing and Communications. “For potential new office space, Memphis’ Downtown along with the Poplar-I240 corridor would be prime areas of concentration for relocation and expansion.”
The Fast Track PILOT originated from a March 2016 presentation by the Commercial Real Estate Owners Alliance, who wanted to simplify the PILOT application process for eligible commercial real estate projects in order to make Memphis and Shelby County more competitive with DeSoto County.
The EDGE board unanimously approved the proposal at the May meeting.
The Fast Track PILOT joins four existing EDGE PILOT programs: Jobs PILOT, Destination Retail PILOT, Expansion PILOT, and Community Builder PILOT.
“The main difference of the Fast Track PILOT and the other PILOTs is the broad stroke application of the PILOT term length,” said Boone. “The Fast Track PILOT offers a 10-year PILOT term versus the more tailored length of term for the other PILOT programs.”
Other Fast Track terms includes a two-year ramp-up period, at 75 percent abatement of City of Memphis and Shelby County taxes on real property improvements and tangible personal property for projects.
Fast Track projects must have a capital investment of at least $1 million and create at least 25 full-time jobs with a base pay rate of $12 per hour. Applicants must also meet minimum requirements of the EDGE Local Business Participation program, which specifies 25 percent of construction spending and 15 percent of PILOT savings be spent with certified minority and women business enterprises and locally owned small businesses.
Housing, entertainment and recreation facility projects, as well as speculative projects or projects already under construction, are not eligible for the Fast Track PILOTs.
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