FedEx Logistics is asking for a $10 million grant from the state of Tennessee to aid in its move to Downtown Memphis, which would add another piece to the company’s incentives package for relocating its Memphis headquarters.
The agenda for the Tennessee State Funding Board’s March 8 meeting includes the consideration of a $10 million FastTrack Economic Development Grant for the FedEx company, which is currently headquartered in East Memphis.
The state Department of Economic and Community Development will present a report to the board regarding the possible funding, according to the agenda.
The FastTrack Economic Development Fund gives “grant support for companies expanding or locating in Tennessee with reimbursable grants made to local industrial development boards,” according to the department’s website.
The fund is used only “in exceptional cases where the impact of the company on a given community is significant,” it says.
FedEx Logistics, a specialty trade company led by Greater Memphis Chamber chairman Richard Smith, announced the oft-rumored move in February. Roughly 680 employees will move Downtown to the vacant Gibson Guitar Building as a result, about half of those already working for the company in the Memphis area.
Other incentives approved for the FedEx Logistics move
The owner of the future FedEx Logistics headquarters, Somera Road, has been approved for a 22-year extension of a property tax break from a Downtown Memphis Commission affiliate. The incentive, a payment-in-lieu-of-taxes, will save Somera Road about 75 percent of its property tax obligation.
Also, a $2 million grant approved by the Economic Development Growth Engine of Memphis and Shelby County will help cover building improvement costs. A $1 million grant approved by the Center City Development Corp. board will fund some renovations.
Also on the Tennessee State Funding Board’s agenda is approval of a $1.22 million grant for JNJ Express, which broke ground earlier this week at its new Memphis headquarters and is aiming to add 610 new jobs in five years there.