A California-based electric car manufacturer has applied for a payment in lieu of taxes (PILOT) incentive to operate a facility in Memphis.
Economic Development Growth Engine for Memphis and Shelby County officials are scheduled to vote on the tax break Wednesday, said EDGE spokesman Charles Vance.
Vance supplied documents that say that officials with Mullen Technologies want to invest $362 million in the city to create 434 jobs with an average wage of $53,109. The PILOT incentive would last for 15 years, according to the documents.
If EDGE board members go along, Mullen officials would manufacture an electric vehicle at an abandoned 817,000 square foot assembly plant, which the Nike company previously occupied. Mullen would then sell these vehicles to customers at costs ranging between $58,500 to $78,500 per vehicle, according to the documents.
“Mullen has been evaluating other locations for its assembly plant in their home state of California, as well as pursuing a new construction project in Spokane, Washington,” according to Mullen’s PILOT application.
“The Memphis area, however, provides distinct advantages over other opportunities. The Memphis option does not require a time-consuming new building design, financing and construction process.”
Mullen Technologies officials did not return The Tennessee Star’s request for comment Monday.
As The Star reported in 2018, EDGE is an unelected board of 11 people who have enough power to grant millions of dollars in tax abatements to corporations.
As reported in 2019, EDGE bestowed a generous amount of corporate welfare upon AutoZone and $9.5 million in tax incentives to bring IKEA to Memphis. As later reported, IKEA informed city officials they could not do what they promised in exchange for that money. IKEA officials gave up some of their previously approved 11-year tax abatement.
IKEA did not hire the number of jobs or pay the level of wages it promised city and county officials in exchange for lesser property tax payments, the website went on to say.
– – –