Photo Courtesy of TOWNSHIP DEVELOPMENT SERVICES
The Collierville Board of Mayor and Aldermen has approved an eight-year tax break for CCL Label, which built a manufacturing facility in the town 10 years ago and is scheduled to soon undergo a 85,000-square-foot addition.
Board members voted 4-2 Monday night to ratify a resolution from the town’s Industrial Development Board that grants the business a 65-percent property tax reduction.
Aldermen Billy Patton and Tom Allen voted against the tax break and asked that town staff reevaluate Collierville’s procedures regarding the Payment-in-Lieu-of-Taxes Program (PILOT).
CCL Label manufactures printed labels for a variety of food, drug, agricultural, beverage and cosmetic applications.
The proposed expansion will consist of a new specialty label manufacturing facility located next to the existing building on Progress Road. It is estimated to create 130 new jobs by 2022 with a median salary of $48,000, including 76 new jobs within three years.
Patton took issue with the median wage.
Noting that the median household income in Collierville is around $103,000, the alderman worried that the wages offered by the business would be insufficient for employees to live in the town.
“These jobs can’t support a family as a primary source of income,” he said.
Allen said he would like to see Collierville get a “more favorable deal” and asked that the matrix used by the Industrial Development Board to grant PILOTs be reassessed.
The company is also seeking benefits from Shelby County and is estimated to receive a $3.3 million exemption in county and municipal taxes over the next eight years.
John Duncan, director of economic development for the town, said the Industrial Development Board met on March 17 to review the PILOT application.
“They analyzed the number of jobs,” he said, “the wages associated with those jobs, as well as the capital investment.”
He noted that the company did not seek a PILOT when it first constructed a plant in Collierville in 2006.