Delta Metals

Situation
Delta Metals started its business in 1978. They provide services for the automotive, construction, electrical and agricultural industries. As the business began to grow, it was time for Delta Metals to expand. In order to remain profitable, they would need to handle the expansion process in the most efficient and cost-effective way possible. They found out they were eligible for economic incentive programs, and they began to look into the potential benefits for programs in both Tennessee and Mississippi.

Solution
The Economic Development Department in Memphis helped Delta Metals receive Industrial Revenue Bonds. Delta Metals then applied for the Payment-In-Lieu-Of-Tax (PILOT) Program for their expansions. The approval process went smoothly and they were granted a tax freeze based on their plans for expansion. Delta Metals even qualified for more years of a tax freeze based on the particular location of their real estate in the Memphis area. They planned their expansion in the Memphis area based on the fact that Memphis came through with the incentives they needed to make their expansion as cost-effective as possible. Also, a big incentive to stay in Memphis for Delta Metals was the prime geographic location of Memphis, allowing them easy access to all modes of transportation.

Results
Delta Metals has gone through three expansions since their opening in 1978. They have used the PILOT Program for all of these.

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Federal Express

Situation
Federal Express is one of the largest service organizations in the world focusing on overnight delivery. Over the years, Federal Express has gone through several expansion projects ranging from building their World Tech Centers to expanding the hub, located here in Memphis. When they began to examine programs that could be beneficial to them during these expansion periods, they wanted to apply for the economic incentives available to them. They also wanted to utilize these savings opportunities to assist them in their city selection process for future expansions.

Solution
Federal Express's hub remains in Memphis today because of the central location, the availability of the workforce, a strong relationship with the local airport authorities, and economic incentive programs that make staying and expanding in Memphis worthwhile. These qualities have fueled major expansions in the Memphis area, including a recently completed large facility in Collierville, Tennessee, a suburb of Memphis. They have received a multiple year tax freeze as part of the Payment-In-Lieu-Of-Tax (PILOT) Program.

Results
Continued use of available incentive programs maximizes ongoing cost-effective growth. In addition to the PILOT Program, Federal Express has used the Tennessee Industrial Infrastructure Program (TIIPS) and received Industrial Revenue Bonds.

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International Paper

Situation
On the threshold of the 21st century, International Paper is a diversified, global company with manufacturing operations in the western hemisphere, Europe, Asia and Africa. In the early 1980's the company's headquarters were in downtown New York City. The cost of living was high and the quality of life was low. International Paper needed to make some changes to create a productive environment for their employees and ensure a profitable future.

Solution
International Paper began searching for a relocation site. Among the criteria were cost of living, quality of life, workforce availability and incentive programs. They contacted the Memphis Area Chamber of Commerce for information, and The Chamber informed them of specific incentive programs that could benefit their company. International Paper applied for the Payment-In-Lieu-Of-Tax (PILOT) Program. The application process was simple, and they were approved quickly. In 1986, International Paper moved one of its main headquarters to Memphis. Not only were the quality of life and the cost of living attractive, they benefited greatly from the economic incentive programs which allowed them a multiple year tax freeze.

Results
Since their move to Memphis, International Paper has expanded by building two more large office towers. They have utilized the PILOT Program for all of their expansions. They now employ thousands of people in the Memphis area and have saved millions of dollars as a result of the economic incentive programs available to them.

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Quebecor

Situation
Started in 1958, Quebecor is now part of the largest commercial printing group in the world. They handle large print jobs for such clients as Office Depot, K-Mart and Sears. They are primarily a web press capable of printing millions of pieces per print run. When Quebecor merged with World Color in 1989, they began to be eligible for expansions. Their plant manager wanted to expand, but the Corporate Board of Directors was concentrating on expanding other locations. Quebecor needed a reason for the Corporate Board of Directors to find it beneficial to expand the local plant, and keep it in the Memphis area. At this time, Quebecor already relied heavily on the talent of the local workforce.

Solution
Quebecor worked with the Economic Development Department in Memphis to gain approval for the Payment-In-Lieu-Of-Tax (PILOT) Program. It was discussed that a possible place for expansion might be another area of Tennessee. However, the Memphis area came up with the incentives needed to keep the business local. The Board of Directors saw the savings that could be achieved and approved the expansions needed. They were able to expand in the Memphis area, and continue the tradition they had started in 1958.

Results
Over the past decade, Quebecor has saved millions as a result of the PILOT Program.

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Wholesale Glass

Situation
Wholesale Glass started business in Memphis in 1984. Since then, they have been selling glass to clients in commercial real estate, contractors, architects and design firms. The owners were two men from Memphis who wanted to start the business locally, but needed incentive programs to make expansions efficient. The owners called the State Economic Development Department looking for assistance and the State led them to the Economic Development Department in Memphis and Shelby County.

Solution
The Economic Development Department worked with Wholesale Glass to help them expand their business in the most efficient way possible. Due to the savings they received, they were able to afford to expand all at once instead of doing it piece-by-piece. This allowed them to keep extra workers they hired on full-time, even after the expansion. They were also able to purchase new machinery as a result of the Payment-In-Lieu-Of-Tax (PILOT) Program. They have even looked into using more incentive programs in ongoing business expansions.

Results
As a result of the PILOT Program, Wholesale Glass was able to increase and maintain their workforce and purchase new equipment, thus expanding their business. Being able to do this all at one time enabled them to save on employee training costs, service customers better with their new equipment, and have a higher service capacity with their new expansion.

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