Electric car factory coming to southeast Memphis gets tax break
MEMPHIS, Tenn. (WMC) - A West Coast car maker just received a big tax break to set up shop in the Mid-South. In exchange, the company promised to create hundreds of jobs in Memphis and Tunica, Mississippi.
On Wednesday, the Economic Development Growth Engine (EDGE) for Memphis and Shelby County approved a $40 million tax incentive for Mullen Technologies. It’s a start-up, electric car company ready to “just do it” at their new Memphis digs.
After sitting vacant for five years, the massive, 817,000 square foot Nike warehouse at 8400 Winchester near Southwind will be transformed into the first auto manufacturing plant in Memphis since the 1950′s.
Mullen Technologies plans to spend $362 million to renovate the building and create 434 jobs with an average salary of $53,000.
In return, EDGE approved a 15-year, $40.6 million PILOT Payment in Lieu of Taxes.
Mullen also agreed to buy a 120,000 square foot factory in Tunica, Mississippi. It’s the car assembly plant operated briefly by GreenTech Automotive.
The facility will support Mullen’s Memphis operation and will require at least 50 more new jobs.
A news release from EDGE says:
“The Memphis area provides several advantages as it is ideally suited to better leverage suppliers and reach customers, and there would be two facilities available within 50 miles of one another.”
Mullen says it will roll out 5,000 midsize, electric SUVs in 2024 with a purchase price ranging from $58,000 to $78,000.
EDGE says annual property taxes for the Nike warehouse and the 37 acres it sits on will be about $1 million a year during the Mullen PILOT, and then go up to more than $2.5 million after that.
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