Sat
Feb 2 2019
07:21 am

In 2010, city, county and state officials agreed to the following incentives to lure Electrolux to the city, according to the city: Two parcels of free land totaling 800 acres in Pidgeon Industrial Park; $40 million from the city and county; $2 million from the city and county for ancillary costs; a 15-year PILOT abating 90 percent of city taxes and 75 percent of county property taxes; a $95 million cash grant from the state of Tennessee; and a $3 million federal grant from Delta Regional Authority.

The Electrolux Memphis plant opened in 2014 and will close in 2020. The plant currently employs 530.

Electrolux said in a news release it has decided to focus its attention and money on its Springfield, Tennessee, location north of Nashville. They will be re-initiating a $250 million investment into the facility and then consolidating all of its cooking manufacturing into that location as well.

You have to wonder where it's really going with the Springfield, TN plant. They promised that $250 million in January, 2018, then put the plans on hold blaming it on problems with the President's new tariffs.

Governments didn't just give Electrolux tax breaks. It gave them huge cash grants for the factory and equipment.

In an investigative report from the Commercial Appeal, the 2010 contract explicitly blocks the governments involved from "any recapture, clawback, refund or similar remedy" if Electrolux failed to create the desired 1,240 jobs. Nor did Electrolux agree to stay in Memphis for any specific length of time.

Memphis has had some problems for quite a while, almost like Detroit.

jbr's picture

The Real Cost of Luring Big Companies to Town

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