Memphis’ Economic Development Growth Engine has reportedly bestowed a generous amount of corporate welfare upon Auto Zone’s headquarters.
This, according to The Daily Memphian, which reported the auto parts retailer will receive a 15-year payment-in-lieu of-taxes (PILOT) incentive, via EDGE.
The paper also reported the company will expand its downtown Memphis presence.
“The PILOT will save AutoZone $11.2 million and generate $14 million in local taxes over the 15-year term,” according to The Daily Memphian.
“The property tax abatement is to incentivize the company to choose Memphis for an investment of $145 million in new technology and customer support operations that will create 130 new jobs with an average base salary of $80,439.”
The paper reported the company will house new operations about a block north of AutoZone’s main headquarters building at the 100th block of South Front Street.
AutoZone bought the property for $2.2 million in May 2018, according to The Daily Memphian.
EDGE board members Tom Dyer and Johnny Moore recused themselves from the vote because their companies do business with AutoZone.
As The Tennessee Star reported, EDGE is an unelected board of 11 people who have enough power to grant millions of dollars in tax abatements to corporations.
As The Tennessee Watchdog reported, EDGE previously gave $9.5 million in tax incentives to bring IKEA to Memphis.
As The Star reported in April, 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.
IKEA ended 2018 with 147 employees on site, 28 jobs short of its commitment to bring 175 new jobs to Memphis.
Officials with the European-based company described just how selective they are in choosing store locations. IKEA’s application revealed the company picked communities based on where it can get the most generous tax incentives.
Those areas include St. Louis; Merriam, Kansas; and Centennial, Colorado, according to IKEA’s application with the city.
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Chris Butler is an investigative journalist at The Tennessee Star. Follow Chris on Facebook. Email tips to [email protected].
Photo “AutoZone Store” by AutoZone.
