A Texas-based electronics manufacturer is expanding its operation to Memphis.
On Wednesday, the Economic Development Growth Engine for Memphis and Shelby County (EDGE) approved a 10-year payment-in-lieu-of-taxes (PILOT) for Reconext Tennessee LLC. Reconext is based in Grapevine, Texas, and the new LLC is the company's first footprint in the Volunteer State.
The 10-year PILOT will bring 161 jobs and a capital investment worth $4.6 million. Majority of the investment, $3.5 million worth, is going toward equipment and office fixtures. Of those 161 jobs, 117 are operator roles, according to the PILOT application. The average base salary is $39,101.37.
Reconext will be moving into an existing 165,243-square-foot facility at 5020 Tuggle Road in southeastern Memphis. The company is signing a five-year lease with some current Texas-based employees relocating to the Memphis facility and 161 new employees hired within the first two years. An additional 44 new jobs will be added within the first five years, according to the PILOT application.
During Wednesday's meeting, Reconext representatives acknowledged the company plans to use a staffing agency to recruit future employees at the new Memphis distribution facility. The hiring and onboarding process through the recruiter takes up to three months.
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Renovation work at the facility is expected to begin in August, with the facility up and operational within four months once construction is complete.
According to EDGE staff reports, the project is expected to created an estimated $6.16 milion in local tax revenues during the PILOT term with a $1,608,638 benefit to Reconext. The PILOT also includes a Community Reinvestment Credit worth $10,599,317.
Cushman & Wakefield is the site consultant for the project.
Reconext is headquartered in Grapevine, Texas, however the company has 12 North American locations along with seven international sites.
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Neil Strebig is a journalist with The Commercial Appeal. He can be reached at neil.strebig@commercialappeal.com, 901-426-0679 or via X: @neilStrebig.
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