MEMPHIS, Tenn. –International Paper said it’s firmly rooted in Memphis, but the company’s loyalty came at a cost: a 15-year pilot worth about $57 million.
It was IP’s second tax abatement and it was highly criticized as were some other pilot awards.
PILOTs have stick points for unions during city salary negotiations.
“A little bit more than less than what a private entrepreneur asked for to renovate the Chisca hotel and we’re going to work for ours,” said Thomas Malone with the Memphis Fire Association.
On the heels of concerns from citizens, City Council members and commissioners, and the EDGE Board has come together to rewrite its policies and procedures for awarding pilots.
“At the end of the day we won’t be giving any bigger incentive,” said EDGE President Reid Dulberger who presented proposed changes to EDGE Board members last week.
He said the changes won’t cost taxpayers anymore money.
“Part of that is to be more competitive without giving a bigger incentive,” said Dulberger. “So how do you do that? If you make it a little bit easier on folks if you don’t require quite as much paper. If you make the process a little faster. We can be competitive without giving a bigger incentive.”
Dulberger said remaining competitive was a must to retain businesses and lure new ones to Memphis and Shelby County.
The competition he said was global and local with the Mississippi and Arkansas borders just minutes away.