IKEA breaks ground on first TN store

MEMPHIS, TN (WMC) - After working out the kinks in its property tax appraisal, IKEA broke ground off Germantown Parkway Thursday morning.

City, county, and IKEA leaders were at the groundbreaking ceremony to mark the occasion.

IKEA Memphis will take up 35 acres and 271,000 square feet. Inside, Mid-Southerners will be able to find anything and everything when it comes to furniture and accessories...and yes, IKEA's famous Swedish food market and 300-seat restaurant, too.

IKEA overcame its dispute with the county tax assessor on the tax appraisal of the property. The joint city-county Economic Development Growth Engine (EDGE) accepted the store's original appraisal rate as set in January.

The result, Shelby County Mayor Mark Luttrell said, is guaranteed property tax revenue for Shelby County Schools.

"In the first year, we will see an increase in tax revenue just for schools alone of almost a half-million dollars," Luttrell said. "In the very first year, almost a half-million dollar benefit for education in our community," Luttrell said.

Now, it's full-steam ahead to hire as many as 225 workers with an average salary of $41,000 with full benefits.

"We look forward to hiring from the local community, becoming a long-time community partner here in Memphis, contributing to the dynamic vitality envisioned for the Wolfchase area and bringing our unique family shopping experience," IKEA U.S. Real Estate Manager Reed Lyons said.

Weather-permitting, IKEA Memphis, the Sweden-based company's first store in Tennessee, will open Fall 2016.

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