MEMPHIS, Tenn. - FedEx Logistics will receive a $2 million grant from the EDGE board to offset renovation costs to the new facility.
FedEx announced its plans to relocate its corporate headquarters to Downtown Memphis inside the old Gibson guitar factory Tuesday.
The grant announcement was made on February 14.
FedEx’s application isn’t for a PILOT, which is a temporary, partial abatement from city and county taxes.
This will be a cash reimbursement and EDGE staff said the board will offer these grants from time to time for relocation projects.
But members of the Memphis Coalition of Concerned Citizens believe a company of this size doesn’t need any additional incentives.
“What is two million dollars to a multibillion-dollar corporation? It just sounds like someone got the hookup,” said Pearl Walker with MCCC. “I know that sounds like street talk and I know there were certain processes.”
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In a written statement to FOX13, a FedEx Logistics spokesperson said:
“Without the state and local incentives, this project would not be coming to downtown Memphis as it would not have been financially feasible versus other lower cost locations or other competing markets offering incentives of their own.”
A spokesperson for EDGE said FedEx will not receive this funding until after the corporation completes its $12.2 million improvements to the site.
Walker said she’s also concerned about who will be getting the more than 300 new jobs from this relocation.
“Most importantly, the jobs that they’re promising – they should make a commitment to hire local,” said Walker.
EDGE staff said they don’t actively track the percentage of jobs that go to Memphians.
But starting in 2020, FedEx must submit annual performance reports detailing the number of jobs and average wages for each year.
EDGE participation will be part of an overall package offered by the State of Tennessee and the Downtown Memphis Commission’s Center City Development Corporation (CCDC) and Center City Revenue Finance Corporation (CCRFC).
Both the EDGE board and Downtown Memphis Commission are meeting Thursday to discuss their respective grants for the corporation.
Below is the full statement from FedEx:
“FedEx considers all available state and local financial incentives when evaluating potential facility projects. As a matter of policy, we do not publicly discuss specifics of a project until all the details have been finalized. I can say that without the state and local incentives, this project would not be coming to downtown Memphis as it would not have been financially feasible versus other lower cost locations or other competing markets offering incentives of their own.
We are an equal opportunity employer with a focus on diversity and inclusion. At FedEx, we’re as diverse as the world we serve. From Memphis to Mumbai, from Sao Paulo to Sydney, the world of FedEx is all about connecting people, places and cultures. To meet the needs of a diverse customer base, we reflect that diversity within our organization and celebrate it in communities around the world. Diversity & Inclusion at FedEx connects people and possibilities to deliver a better future for team members, customers, suppliers, and communities.” - Jonathan Lyons, FedEx Media Relations
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