$140 million FedEx expansion may hinge on tax breaks - WMC Action News 5 - Memphis, Tennessee

$140 million FedEx expansion may hinge on tax breaks

(WMC-TV) – FedEx wants to move all of its flight training facilities to Memphis and the shipping giant plans to spend more than $140 million to do it.

FedEx is planning an expansion at its Airways campus.

But first, in a request for a retention PILOT with the Economic Development Growth Engine of Memphis and Shelby County, the company has asked for two different tax breaks to make the project happen.

The shipping giant argues that a $14.6 million tax abatement will result in $32.1 million worth of tax revenue for the city and county.

FedEx already operates a flight simulator training facility at the campus, but the flight training program is also spread across other locations across the county.

By doubling the size of the Airways facility, FedEx says it will secure 333 existing jobs that pay an average of $76,707 per year.

In a brief statement, FedEx officials said they are applying for the PILOT freeze because it makes sense for the Corporate Technology Center.

"This will consolidate all FedEx flight training into one location," said a company spokesman. "We're hopeful that our request is approved so that our hometown will remain a primary beneficiary of our capital investment."

FedEx says the city county will make $2.19 in taxes for every dollar of abatement.

The EDGE board will hear the request Wednesday afternoon.

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