Jobs PILOT Term Sheet: Evergreen Packaging Inc.

Transcription

1 Jobs PILOT Term Sheet: Evergreen Packaging Inc. Evergreen Packaging Inc. ( Applicant ) is seeking a 15 year Jobs PILOT to enable the company to add 70 Net New Jobs, in addition to its current 103 employees located in Memphis, Tennessee. The Applicant will make a $3,823,800 capital investment to renovate an additional 40,000 square feet at 5350 Poplar Avenue Suite 600, Memphis, Tennessee. Graeme Hart, the owner of Evergreen, has decided to combine Evergreen along with two(2) sister companies; Closure Systems International (Indianapolis,Indiana) and Graham Packaging Company (York, Pennsylvania) into one consolidated global packaging organization. Together these three companies comprise 127 global manufacturing facilities in 36 countries with revenue in excess of $5 billion and over 14,000 employees worldwide. The new employees will include Executive Management,Administrative Support, Corporate Accounting, Internal Auditing and Human Resources. The average base salary for the 70 Net New Jobs is $176,283 excluding benefits and overtime. The Applicant will invest $260,000 to renovate the Poplar Avenue facility. Staff recommends the existing building receive Community Reinvestment Credit. The Applicant will invest $550,000 in Furniture, Fixtures and General Equipment. Additionally, the Applicant will invest $105,000 in Computers and Office Equipment. Parcel is 3.6 acres and contains a 163,446 square foot building with the assigned address of 5350 Poplar Avenue. The Applicant will occupy an additional 40,000 Square Feet. Established in 2007 when the applicant purchased Blue Ridge Paper Products Inc. Blue ridge Products Inc was an independent manufacturer of beverage packing products. The Blue Ridge business included fresh beverage facilities and a mill in Canton North Carolina. Over the years, Evergreen has been responsible for many breakthroughs in beverage carton packaging. In 2007, Evergreen was awarded a six(6) year PILOT on Real and Personal Property to create 65 Net New Jobs and invest $450,000 in real property and $550,000 in Personal property. The Real property PILOT was terminated effective 1/2/2014 and the Personal Property effective 12/31/ Staff projects $7,139,205 in total tax revenues to be received during the PILOT term of this project and a $1,167,403 benefit to the Applicant.When the three (3) year ramp up is complete, this facility will act as the corporate Headquarters for the entire organization.

2 The 15 year PILOT for the Applicant is based on the following terms: CITY OF MEMPHIS TERMS % PAID SHELBY COUNTY TERMS % PAID Personal Property Year 1 15 Real Property Year 1 15 Personal Property Year 1 15 Real Property Year 1 15 PILOT Evaluation Matrix CATEGORY DATA YEARS Net New Jobs Average Wages $176, Capital Investment and CRC $3,823, City of Memphis Yes 1 New Markets Tax Credit Eligible No 0 Headquarters Relocation Yes 2 Diversity Plan Program Standard Met 1 MWBE Owned No 0 Total 22 Maximum PILOT Term Allowed 15

3 Project Budget Detail REAL PROPERTY CRC $2,908,800 Renovation $260,000 Sub Total $3,168,800 PERSONAL PROPERTY New $655,000 Transferred Sub Total $655,000 Total Investment in PILOT $3,823,800 INVESTMENT NOT INCLUDED IN PILOT Other Real Property Other Personal Property Fees & Soft Costs Sub Total Total Capital Investment $3,823,800

4 Diversity Plan Applicant acknowledges the following good faith efforts to contract with certified minority, women owned and local small businesses (Certified EBO & LOSB firms) based on the targeted terms outlined below and the attached Diversity Table. TOTAL SPENDING OVER LIFE OF PILOT MWBE/LOSB SPENDING OVER LIFE OF PILOT PERCENT Construction $260,000 $65,000 Professional Services $1,500,000 $375,000 Goods $1,030,000 $257,500 Non professional Services $750,000 $187,500 Total $3,540,000 $885,000 Below represents the identified labor source agreement: We agree to use good faith efforts to hire and maintain a level of (or a total of 8 employees for the PILOT period) of our committed new jobs of 70 (less the number of jobs being filled through relocation of existing employees) through the Workforce Investment Network, the Memphis Career Center or local colleges and universities.

5 Conditions Award of a PILOT in accordance with the recommendations of the Economic Development Growth Engine (EDGE) Industrial Development Board of the City of Memphis and County of Shelby, Tennessee staff, as set forth herein, is subject to the following conditions. 1. The award is subject to the review and approval of the Board s counsel. 2. The award of a PILOT to the real property of Applicant is subject to the review and approval of the Applicant s environmental impact study. 3. The award is subject to receipt of letters of approval from the mayors of both the City of Memphis and the County of Shelby. 4. The Board reserves the right to assign the PILOT, or its rights with respect thereto, to the Memphis and Shelby County Industrial Development Board (the IDB ), in accordance with the service agreement between the Board and the IDB, if the Board ultimately deems it beneficial. 5. The award is subject to approval of Applicant s diversity plan by the Board following a recommendation of EDGE s consultants. 6. Except as explicitly provided in this term sheet or in a resolution of the Board, the award is subject to the provisions of the Jobs PILOT Program Policies and Procedures. 7. The award is subject to the negotiation and execution of a Special Warranty Deed, and a PILOT lease agreement requiring the payment of rent in the amount of $ per year. 8. In the absence of an explicit written waiver of this condition, no conveyance will be deemed to have been accepted by EDGE, the IDB or any other affiliate or agent of EDGE unless and until all of the documents for the subject transaction, including a Special Warranty Deed, and a PILOT lease agreement, have been negotiated and delivered.