Tennessee officials may decide this week to give $10 million in corporate welfare to FedEx, the state’s largest employer, according to various news outlets.
When asked, the people at FedEx told The Tennessee Star that, yes, they are seeking corporate welfare.
“FedEx considers all available state and local financial incentives when evaluating potential facility projects,” said spokesman Jonathan Lyons, in an emailed statement.
“As a matter of policy, we do not publicly discuss specifics of a project until all the details have been finalized. We are thrilled about being a part of this important development for downtown Memphis.”
According to U.S. News & World Report, members of the State Funding Board may decide the matter Friday. There, they will reportedly discuss a new Tennessee Department of Economic and Community Development report on that and other matters.
“A $10 million FastTrack Economic Development Grant has been proposed for the establishment of a headquarters by FedEx Logistics in the former Gibson Guitar factory in downtown Memphis,” U.S. News & World Report said.
“The board also is set to vote on a $1.2 million grant for JNJ Express trucking company to turn an abandoned shopping center into its new headquarters. Both Shelby County projects also are receiving local financial incentives.”
Board members, the website, went on to say, will also review, and possibly approve, similar projects in Putnam, Hamblen, and Carroll counties.
According to The Memphis Business Journal, FedEx, if it gets the corporate welfare, will expand its FedEx Logistics subsidiary and move from East Memphis to downtown.
“The state subsidy would be in addition to what local economic development agencies have already agreed to provide,” The Memphis Business Journal reported.
“Two Downtown Memphis Commission-affiliated boards gave a combined $32.6 million in incentives in a payment-in-lieu-of taxes (PILOT) and grant funds for the company’s move to the Gibson Guitar Factory in Downtown. The Economic Development Growth Engine (EDGE) for Memphis and Shelby County also gave a $2 million grant.”
All told, FedEx Logistics could receive nearly $45 million in incentives for its Downtown relocation.”
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Chris Butler is an investigative journalist at The Tennessee Star. Follow Chris on Facebook. Email tips to [email protected].
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