Nike Seeks to Expand Operations Center In Memphis With Local Tax Breaks
Nike plans to “invest $301 million in two of its Memphis distribution facilities, add 250 jobs, and in return seek a break in local taxes that would save the company $58 million,” according to Thomas Bailey Jr. of the Memphis COMMERCIAL APPEAL. Nike is making Memphis a "major element" of its business with plans “for a $276 million, 1.8 million-square-foot expansion of its four-year-old distribution center at 3100 New Frayser in Northridge Industrial Park and a $25 million upgrade of its center at 5151 Shelby Drive.” The 250 new jobs would be “added to Nike's existing Memphis workforce of 1,662.” Average pay of the new positions “is $35,000, plus $7,000 a year in benefits.” In addition, Nike is “more than doubling its 1.1 million-square-foot facility in Frayser.” The existing $107M distribution center “opened in September 2008” (Memphis COMMERCIAL APPEAL, 10/16). In Memphis, Andy Ashby notes the Board of Light, Gas & Water Commissioners on Oct. 4 “approved a resolution authorizing Memphis Light, Gas & Water to spend up to $2.5 million for relocating electric distribution and transmission lines to allow for the expansion” of the new Frayser Blvd. facility. MLGW CEO & President Jerry Collins said that the company over the next several weeks “will enter into a contract with Nike in which the company will pay for the improvements.” Nike leases “an 812,697-square-foot building at 8400 Winchester Road for a returned merchandise operation.” It also operates “a distribution facility at 5151 E. Shelby Drive, a 1.3 million square-foot building, as well as a 455,700-square-foot building at Memphis Industrial Park.” Cushman & Wakefield Commercial Advisors Asset Services Exec VP Mark Jenkins said, “It just validates Memphis as a player and I think it’s going to continue” (MEMPHIS BUSINESS JOURNAL, 10/12 issue).