MEMPHIS, Tenn. — As an electric car manufacturer says they plan to make the Mid-South their manufacturing base, WREG is taking a look at the significant incentives the company was offered to come here.
Mullen Technologies plans to bring up to 800 jobs to Memphis with an average salary of more than $53,000, promising to pump tens of millions of dollars back into the economy.
“I think it’s wonderful,” said Shelby County commissioner Van Turner. “We really have to support an effort like this effort. It’s good for the environment, and it’s good for the economy.”
EDGE, Economic Development Growth Engine for Memphis and Shelby County, provided Mullen with a 15-year jobs PILOT worth more than $40 million.
“I think the cost-benefit analysis suggests that it’s much better to do the deal than to not do the deal,” Turner said. “We just need to make sure there are procedures in place to recoup the money if the other side doesn’t hold up their part of the deal.”
EDGE says Mullen will not receive any benefits until certain criteria is met. That criteria includes spending more than $300 million on their property and entering a 16-year lease on the property.
Charles Vance, Director of Marketing and Communications with EDGE, says they also make several site visits throughout the PILOT term.
“If the commitments are ever not being met, we have a compliance department that looks through all of this, works with the companies and those PILOTs are all rescored,” Vance said.
The agreement will also see an increase in property taxes paid, with more than a million dollars a year generated during the PILOT and more than $2.6 million when the PILOT is complete.
The company plans to begin production in 2024.