The Economic Development Growth Engine for Memphis and Shelby County awarded Barrett Distribution 5-year PILOT for expansion of their Memphis facility.
Online PR News – 22-August-2012 – Franklin, MA – Barrett Distribution recently received approval from the Economic Development Growth Engine (EDGE) for Memphis and Shelby County for a 5-year PILOT (payment-in-lieu-of-taxes). Barrett requested the tax abatement with regards to its plans to expand the Memphis fulfillment center. Barrett plans to lease more of the available space at its current location in order to expand its warehouse and fulfillment services. EDGE reviewed the request at a meeting on Tuesday, August 14th, and concluded that new tax revenues would succeed the tax abatement making the decision healthy for the company and the Memphis area.
The fulfillment center to be expanded is located at 4836 Hickory Hill and currently occupies 391,160 square feet. Barrett is looking to lease more space at the current location in order to expand their fulfillment services and capabilities.
Barrett is investing $4.9 million in the expansion, which will add 254,940 square feet to the existing facility, which currently uses 391,160 square feet. Barrett expects to add 35 jobs to its current workforce in Memphis, which will then total 61 employees. The new jobs will provide average salary of $42,000. The five year plan will also include an extra two years for Barrett to implement its environmental plans for making the facility more sustainable. Barrett Distribution has a great relationship with the city of Memphis and looks forward to the expansion.
“We have a great customer base in Memphis and a great team in place that is hitting on all cylinders. As a third party logistics provider, we are dependent on the service our team delivers to retain existing customers and attract new customers,” said CEO Tim Barrett. “We are thankful to both our Memphis team and our customer base for providing the platform on which we can expand our logistics service offerings in Memphis and provide more value to our customer base.”
EDGE officials expect the project to generate just over $1 million in new tax revenues; $1.51 for every $1 of abated taxes. Barrett currently has annual revenue of around $33 million. The company anticipates growing to $50 million in annual revenue in the next three years. The expansion in Memphis will make the fulfillment center Barrett’s largest.
Barrett Distribution designs, builds, implements and executes customized supply chain solutions with a unique approach to warehousing, distribution, and transportation. Barrett Distribution improves quality, financial performance, and enhances our clients' brand loyalty with end customers, through their patented Blueprint™ process. Their supply chain solutions and warehouse services have been proven effective across multiple industries and locations. Locations the fulfillment center serves include major cities in the Northeast, East Coast, Southeast, and West Coast regions. Barrett deploys single and multi-regional solution strategies across the U.S. Barrett's core competencies include warehousing, distribution, transportation, and value-added services.