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Appliance Maker Electrolux Wins Tax Break

Cooking appliance maker Electrolux has been approved for a 15-year tax freeze – or a $38.7 million savings for the company – in exchange for building a manufacturing center in Memphis, various Memphis news outlets have reported.

The Commercial Appeal says that the tax break is part of a $137 million incentive package from the city, county and state:

The (Memphis-Shelby County Industrial Development Board) ratified a site location and development agreement under which the governments will assist Electrolux in developing a 700,000-square-foot factory in Frank C. Pidgeon Industrial Park in southwest Memphis.

The vote was the first in a fast-track approval process designed to meet Electrolux’s deadline for a done deal by Jan. 31. The City Council and County Commission will vote later on a pair of $20 million contributions to go along with a $97 million state grant.

The company has said it will build ranges, ovens and cooktops at the new plant, which will reportedly employ 1,240 people in jobs with an average salary of about $30,500.

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Press Releases

Amazon.com Considers Opening Tennessee Shipping Centers

Press Release from the State of Tennessee, Nov. 29, 2010:

Negotiations Underway for Fulfillment Centers in Chattanooga and Bradley Co., TN

NASHVILLE, Tenn. – Tennessee Governor Phil Bredesen and Economic and Community Development Commissioner Matt Kisber today confirmed the state of Tennessee is in discussions with Seattle, Washington-based Amazon.com, Inc about locating two fulfillment centers in Tennessee, one at the Enterprise South Industrial Park in Chattanooga and the other along State Route 308 in Bradley County, Tennessee. If negotiations are successful, the two projects would represent a combined investment of more than $164 million dollars to create more than two million square feet of distribution space and up to 1,400 new jobs over a period of years.

We are working diligently with Amazon.com officials to work through outstanding issues on this project, said Governor Bredesen. It is my hope that we can bring these discussions to a successful resolution and create a large number of jobs for the people of Tennessee.

There has been lots of speculation in the media in recent weeks about who we might be working with on this project, said Commissioner Kisber. Because of the need to move forward at the local level on PILOT (payment-in-lieu-of tax) agreements in multiple communities, we felt it was important at this time for policy makers at the state and local level to know who were in discussions with.

Commissioner Kisber has been leading a team which includes Hamilton County Mayor Claude Ramsey, Chattanooga Mayor Ron Littlefield, Gary Farlow, president and CEO, Chamber of Commerce of Cleveland and Bradley County and Trevor Hamilton, vice president, Chattanooga Area Chamber of Commerce in discussions with Amazon.com, Inc. All parties have pointed out a number of procedural steps must be completed involving the state, the county commissions and the local city councils before the project is a go.

This is not a done deal, Mayor Littlefield said. In addition to the PILOT agreements, there are a number of other issues to work through at the state and local level, but we have high hopes of firming up Amazons investment in the next few weeks.

Amazon would make a great addition to our local economy, said Mayor Ramsey. This is a complex project. We couldn’t have gotten this far without Hamilton County, Bradley County, the city of Chattanooga and the respective chambers from both communities working together to make this much progress in a short period of time. Well keep working together to make sure the opportunity becomes a reality for our citizens.

Even though this is not yet a done deal, Bradley County is taking the necessary steps to finalize its local commitment to the company, said Gary Davis, mayor, Bradley County. I am very pleased the county commission decided in workshop session to place the proposed PILOT agreement, industrial access authorization and the FastTrack grant authorization on the consent agenda for next Mondays meeting. To my knowledge, this is the first PILOT agreement ever placed on the consent portion of the agenda and it clearly reflects the level of cooperation, understanding, and trust we have all worked hard to establish between the Administration, the Bradley County Commission, and the Industrial Development Board.

Amazons presence will mean important opportunities for good jobs, said Ross Tarver, chairman, Bradley/Cleveland Industrial Board. A project this far-reaching has many components and takes time to finalize. We could not have gotten to this point without a dedicated and focused regional team working together and our city, county, chamber and state are to be commended.

The Amazon project has come together very rapidly over the past couple of months, said Trevor Hamilton, vice president, Chattanooga Chamber of Commerce. The company has a very ambitious construction timeline, so reaching resolution on the remaining issues is very important if were to be successful in winning this project.