Nike Inc. is about to expand its North Memphis operations as reported by Andy Ashby in an October 15, 2012 article for The Memphis Business Journal. This move would add 250 new jobs to the Memphis area and result in the retaining of 1,662 jobs and an investment of $301 million. The company is looking to expand its Northridge facility by 1.8 million feet. The building at 3100 New Frayser Blvd. is currently 1.1 million square feet.
Nike (NYSE: NKE) is choosing Memphis for its expansion over Beaverton (location of the company’s international headquarters) and North Mississippi, according to an EDGE release. The 250 new jobs will earn $35,000 on average and increase Nike’s total local employment to 1,912. Nike will also spend $25 million to upgrade and retrofit its 1.3 million-square-foot facility at 5151 Shelby Drive for a total of $301 million. If approved, the PILOT would abate $57.8 million in taxes over 15 years, but would add $105.3 million in total new tax revenue over that period, according to EDGE.
“Nike has a significant presence in Memphis and Shelby County — as a large employer, a global brand, and a major philanthropic contributor,” said Reid Dulberger, president and CEO of EDGE and chief economic development officer for Memphis and Shelby County. “The company is currently evaluating its distribution footprint and EDGE, working with our partners, is committed to retaining and growing Nike’s local operations. As such, we have much to gain, but also potentially much to lose. We appreciate the opportunity that Nike has given us and look forward to their continued success in Memphis and Shelby County.”
The expansion could significantly help the Frayser and North Memphis area by adding more jobs and help re-vitalization efforts in the area. The Frayser Community Development Corp has been buying, rehabbing, and renting housing in the area for the last 3 years – since the Nike plant opened there in 2009.
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