08-13-2005, 10:51 PM
International Paper wins 15-year, $15M tax freeze for headquarters move
Jane Aldinger
Staff Writer
Thursday was a busy day for the Industrial Development Board of Memphis and Shelby County, topped off by the board's approval of a 15-year tax freeze for International Paper.
IP (NYSE: IP), which is ranked No. 71 among Fortune 500 companies, announced several weeks ago that it was considering a headquarters relocation from Stamford, Conn., to Memphis.
The move would create 94 new jobs with a median wage of $128,103. The company currently employs about 3,500 people in Memphis, 2,900 of which are direct employees.
IP was organized in 1898 and opened its Memphis operation in 1987. The company located 300 employees here in Tower I at International Place at 6400 Poplar.
Since 1987, the company has continued to grow in Memphis and has been a "great corporate citizen" in that time, says Dexter Muller, Memphis Regional Chamber interim president and CEO.
IP general counsel Ted Niederriter noted that the company has contributed over $5 million to Memphis organizations within the last three years.
Muller also noted that only six times in the last 30 years has a company outside of the South relocated a headquarters to a Southern city.
"This gives us great prestige," he says.
The headquarters relocation will represent a capital investment of $5 million and the project will be located in Tower I and Tower II at International Place, and at 4049 Willow Lake Boulevard and 3232 Players Club Drive in Southwind.
The annual payroll of the 94 executive staff members would be about $19.7 million, which represents an annual tax revenue of about $533,000. IP would have a total of about $15 million in taxes abated over the 15-year period.
In other IDB business, the board approved a seven-year tax freeze for St. Petersburg, Fla.-based Jabil Global Services that will create 376 new jobs with a median wage of $22,800. The company currently employs about 850 people locally. Jabil Global is a sister company to Jabil Circuit Inc. (NYSE: JBL), which was approved by the IDB for a 6-year tax freeze July 20.
Jabil will invest $4.9 million in real and personal property at 4600 and 4540 Pleasant Hill Road. Chip Bailey, Jabil's COO, noted that 97 percent of the company's employees live in Shelby County. Jabil is also committing to Memphis Mayor Willie Herenton's Second Chance program, which aims to reintroduce criminal offenders to the work force.
Jabil's median wage does not include benefits, which are about 30% of an employee's wages.
The board also approved a five-year tax freeze for Cummins Engine Co., a subsidiary of Cummins Inc. (NYSE: CMI) in return for 65 new jobs with an annual median wage of $30,680.
Cummins currently employs 1,085 people in Memphis at two operations. The company will invest $6.7 million at 4155 Quest Way and 2682 Pershing Road, both located in the city limits.
The project's total annual payroll will be about $2.2 million, with a five-year revenue impact of $825,815. Total city and county taxes abated over the five-year period would be about $494,000.
The board also approved an amendment to Wright Medical Group Inc.'s PILOT. The original application was approved on May 18, but Wright (Nasdaq: WMGI) requested an amendment that would allow them to add a national corporate headquarters rollback amendment to the current application.
Jane Aldinger
Staff Writer
Thursday was a busy day for the Industrial Development Board of Memphis and Shelby County, topped off by the board's approval of a 15-year tax freeze for International Paper.
IP (NYSE: IP), which is ranked No. 71 among Fortune 500 companies, announced several weeks ago that it was considering a headquarters relocation from Stamford, Conn., to Memphis.
The move would create 94 new jobs with a median wage of $128,103. The company currently employs about 3,500 people in Memphis, 2,900 of which are direct employees.
IP was organized in 1898 and opened its Memphis operation in 1987. The company located 300 employees here in Tower I at International Place at 6400 Poplar.
Since 1987, the company has continued to grow in Memphis and has been a "great corporate citizen" in that time, says Dexter Muller, Memphis Regional Chamber interim president and CEO.
IP general counsel Ted Niederriter noted that the company has contributed over $5 million to Memphis organizations within the last three years.
Muller also noted that only six times in the last 30 years has a company outside of the South relocated a headquarters to a Southern city.
"This gives us great prestige," he says.
The headquarters relocation will represent a capital investment of $5 million and the project will be located in Tower I and Tower II at International Place, and at 4049 Willow Lake Boulevard and 3232 Players Club Drive in Southwind.
The annual payroll of the 94 executive staff members would be about $19.7 million, which represents an annual tax revenue of about $533,000. IP would have a total of about $15 million in taxes abated over the 15-year period.
In other IDB business, the board approved a seven-year tax freeze for St. Petersburg, Fla.-based Jabil Global Services that will create 376 new jobs with a median wage of $22,800. The company currently employs about 850 people locally. Jabil Global is a sister company to Jabil Circuit Inc. (NYSE: JBL), which was approved by the IDB for a 6-year tax freeze July 20.
Jabil will invest $4.9 million in real and personal property at 4600 and 4540 Pleasant Hill Road. Chip Bailey, Jabil's COO, noted that 97 percent of the company's employees live in Shelby County. Jabil is also committing to Memphis Mayor Willie Herenton's Second Chance program, which aims to reintroduce criminal offenders to the work force.
Jabil's median wage does not include benefits, which are about 30% of an employee's wages.
The board also approved a five-year tax freeze for Cummins Engine Co., a subsidiary of Cummins Inc. (NYSE: CMI) in return for 65 new jobs with an annual median wage of $30,680.
Cummins currently employs 1,085 people in Memphis at two operations. The company will invest $6.7 million at 4155 Quest Way and 2682 Pershing Road, both located in the city limits.
The project's total annual payroll will be about $2.2 million, with a five-year revenue impact of $825,815. Total city and county taxes abated over the five-year period would be about $494,000.
The board also approved an amendment to Wright Medical Group Inc.'s PILOT. The original application was approved on May 18, but Wright (Nasdaq: WMGI) requested an amendment that would allow them to add a national corporate headquarters rollback amendment to the current application.