Barnhart, based in Memphis, was awarded an 11-year Payment-in-Lieu-of-Tax (PILOT) tax incentive in June that will add 20 new jobs and expand the company’s presence in that city. The PILOT was awarded by the Economic Development Growth Engine for Memphis and Shelby County, known as EDGE.
Barnhart will invest $5.2 million in real and personal property at several locations around Memphis. This is already underway as the company recently purchased an industrial property at 2085 W.E. Freeman Drive for $2.6 million with plans to add an additional 60,000-square-foot storage warehouse.
As part of the PILOT, Barnhart plans to expand its local staff of 106 to 126 full-time positions. The average salary of the new employees will be $64,532. As evidence of the company’s growth, when Barnhart opened its doors in Memphis 40 years ago it had ten employees.
The project would create $838,043 in new tax revenue for Memphis and Shelby County and will bring in $1.27 of new tax revenue for every $1 abated, according to EDGE.
Barnhart originally applied for a nine-year PILOT but received two extra years for exceeding EDGE’s diversity goals and for participating in a prisoner re-entry program.
Memphis and Shelby County governments offer the PILOT incentive through EDGE to companies expanding or locating in the community to stimulate business growth and foster job creation. Companies that obtain a PILOT can pay reduced city and county real property taxes and/or personal property taxes.