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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