Int'l Paper Hdq. to Memphis?

[sleepy]

Since 1987, F-500 International Paper has had its operational headquarters in Memphis where it employs 3200 people. Its corporate headquarters is in Stamford CO where it employs 80 to 100 people. IP is in the process of restructuring and mulling over whether to relocate its corporate hdq to Memphis.

Doesn't mean much in terms of jobs--in fact the restructuring would result in Memphis layoffs--but it would be significant in terms of Memphis' corporate presence, bringing the total of F-500 companies in Memphis to 4.

Further info at:

http://commercialappeal.com/mca/business/a...3939368,00.html

[Rural King]

Come on down. Memphis would be a much better location for IP's corporate offices than the cold old northeast. LOL

[sleepy]

Come on down. Memphis would be a much better location for IP's corporate offices than the cold old northeast. LOL

<{POST_SNAPBACK}>

Yeah, well, they've only got 100 people at the hdq in Connecticut while they employ over 3000 in Memphis.

For all the brouha about Memphis getting the corp hdq, the bad news is that Memphis will lose a lot of jobs, surely more than Connecticut will lose.

[Rural King]

Yeah, well, they've only got 100 people at the hdq in Connecticut while they employ over 3000 in Memphis.

For all the brouha about Memphis getting the corp hdq, the bad news is that Memphis will lose a lot of jobs, surely more than Connecticut will lose.

<{POST_SNAPBACK}>

I didn't get that the layoffs would be more than the jobs gained, it was rather ambiguous.

It doesn't really matter to me whether they come down or not. It guess it would probably mean alot in selling the city to have another 500 HQ, but as you say there is little economic impact, and for some folks the impact would be very negative.

[sleepy]

Come on down. Memphis would be a much better location for IP's corporate offices than the cold old northeast. LOL

<{POST_SNAPBACK}>

I remember when the operational headquarters were moved to Memphis back in the 80's.

All the New York-Stamford folks were apprehensive about not getting good pizza and corned beef. lol

They quickly realized that they could buy a mansion in Germantown for the price of a hovel in Stamford. There was an article in the Commercial Appeal at the time how Germantown real estate sales people took advantage and quickly inflated the prices. Slow-talking southerners sticking it to the yankees!

I imagine nowadays those Stamford estates are going for $15 million. Maybe a real estate agent will sell the CEO the Sterrick Building. He'd have money left over.

[Mith242]

It would be a better location in my opinion in Memphis. I think they have a lot more going on in the south than say the northeast. But either way there are going to be jobs lost in many areas. They are also looking to sell off quite a few plants too. I know of at least one in Arkansas that they are trying to get rid of. Luckily my cousin who worked there saw the writing on the wall over a year ago and got another job over at Chattanooga.

[sleepy]

I didn't get that the layoffs would be more than the jobs gained, it was rather ambiguous.

It doesn't really matter to me whether they come down or not. It guess it would probably mean alot in selling the city to have another 500 HQ, but as you say there is little economic impact, and for some folks the impact would be very negative.

<{POST_SNAPBACK}>

The Memphis Flyer says that if the job losses in Memphis are proportional to those elsewhere, Memphis would lose close to 1000 jobs. It makes sense that if IP is selling 30-40% of its operations, its operational headquarters would take a big hit.

The corporate headquarters jobs would add 100 something.

http://www.memphisflyer.com/gyrobase/Content?oid=oid%3A9793

[mandrws1]

Since 1987, F-500 International Paper has had its operational headquarters in Memphis where it employs 3200 people.  Its corporate headquarters is in Stamford CO where it employs 80 to 100 people.  IP is in the process of restructuring and mulling over whether to relocate its corporate hdq to Memphis.

Doesn't mean much in terms of jobs--in fact the restructuring would result in Memphis layoffs--but it would be significant in terms of Memphis' corporate presence, bringing the total of F-500 companies in Memphis to 4.

Further info at:

http://commercialappeal.com/mca/business/a...3939368,00.html

<{POST_SNAPBACK}>

I count Autozone, and FedEx. I'm assuming that the 3rd F-500 company is First Tennessee Bank. Am I correct? What about Union Planters and NBC Bank before the merger, were they on the list?

[TennBear]

The Fortune 500 counts the F500 in a number of different ways and both the First Tenn Bank and Union Planters were on the list for value of assets. Not in terms of sales or proffits.

[mandrws1]

Its official today. Memphis has a new corporate citizen.

http://www.commercialappeal.com/mca/busine...4005282,00.html

[mandrws1]

Its official today. Memphis has a new corporate citizen.

http://www.commercialappeal.com/mca/busine...4005282,00.html

[it's just dave]

Excellent. And from Connecticut, double excellent. Way to go, Memphis. And Congratulations. Where can I sign up for those paychecks?

[sleepy]

Excellent. And from Connecticut, double excellent. Way to go, Memphis. And Congratulations. Where can I sign up for those paychecks?

<{POST_SNAPBACK}>

From the Commercial Appeal--above the fold:

IP relocates (with 15 million in Payment in Lieu of Taxes-PILOT program)

below the fold:

City has 6 million dollar budget deficit

Now, I wonder if all those Memphians who rant about their taxes, yet laud the relocation, will make some connection. If you build it they will come, yes, but you will pay for it.

EDIT: The CA also mentioned that this was only the 7th F-500 company to relocate from outside the south to the south. I find that difficult to believe. They must be excluding Texas. There I can name at least three--Exxon, American Airlines, and JC Penney's.

[sleepy]

Excellent. And from Connecticut, double excellent. Way to go, Memphis. And Congratulations. Where can I sign up for those paychecks?

<{POST_SNAPBACK}>

Dave, forgot to ask--

Georgia Pacific moved its headquarters to Nashville awhile back, right?

What sort of corporate citizen have they been? Community involvement?

IP's had a presence in Memphis for a long time, and hasn't done squat that I'm aware.

Maybe all these paper companies moving to Tennessee means we all can quit using corncobs! lol

[qwertycc]

Dave, forgot to ask--

Georgia Pacific moved its headquarters to Nashville awhile back, right?

What sort of corporate citizen have they been?  Community involvement?

IP's had a presence in Memphis for a long time, and hasn't done squat that I'm aware.

Maybe all these paper companies moving to Tennessee means we all can quit using corncobs!  lol

<{POST_SNAPBACK}>

I really think that Georgia Pacific is still in Atlanta. There is a company called Louisiana Pacific headquartered in Nashville, and although I don't know for sure, I'm guessing it did in fact relocate there from outside Nashville. But, I don't know anything about the company.

And the prestige factor of having a large company like International Paper headquartered in Memphis is worth a lot for the city and the city's status in the national and global economy. Memphis is perceived as being bad for big business because of "uneducated and unmotivated workforce", the budget problems, crime and the city's rough image, education, and high property taxes. That's the perception, but moves like this one can help alter that perception.

[GaTechGuy]

Yeah its Louisiana Pacific that relocated to Nashville. Georiga Pacific is still down here in Atlanta. They're basically the same company though with the exception of GA Pacific making more money.

[Clobber]

Dave, forgot to ask--

Georgia Pacific moved its headquarters to Nashville awhile back, right?

What sort of corporate citizen have they been?  Community involvement?

IP's had a presence in Memphis for a long time, and hasn't done squat that I'm aware.

Maybe all these paper companies moving to Tennessee means we all can quit using corncobs!  lol

<{POST_SNAPBACK}>

IP has been a sponsor of MPact, Playhouse on the Square, the Memphis Symphony Orchestra, Memphis in May, and Wonders; one of their execs is on the board of Leadership Memphis, among other things. Maybe they've done stuff in Connecticut too.

[cdarr]

From the Commercial Appeal--above the fold:

IP relocates (with 15 million in Payment in Lieu of Taxes-PILOT program)

below the fold: 

City has 6 million dollar budget deficit

Now, I wonder if all those Memphians who rant about their taxes, yet laud the relocation, will make some connection.  If you build it they will come, yes, but you will pay for it.

<{POST_SNAPBACK}>

Even though I've been questioning PILOT programs lately, having a F-500 corporate HQ is probably worth doing it. This is no distribution center with a bunch of $10/hour jobs. Having a corporate HQ usually pays dividends in terms of marketing the city, prestige, charitable contributions, sponsorships, etc.

Also, to be fair to PILOT - it is under attack for resulting in $44 million in property taxes not paid annually. Question is, how much of the property in question would be occupied, or even exist, if the incentives had not been offerred?

[sleepy]

Even though I've been questioning PILOT programs lately, having a F-500 corporate HQ is probably worth doing it.  This is no distribution center with a bunch of $10/hour jobs.  Having a corporate HQ usually pays dividends in terms of marketing the city, prestige, charitable contributions, sponsorships, etc.

Also, to be fair to PILOT - it is under attack for resulting in $44 million in property taxes not paid annually.  Question is, how much of the property in question would be occupied, or even exist, if the incentives had not been offerred?

<{POST_SNAPBACK}>

I guess the problem is, those businesses still "consume" city services in terms of roads, police, fire, etc.

And when they don't pay for those services--although they still receive them--someone else is paying for those businesses to receive them, i.e., every other taxpayer.

So, yeah, if those businesses didn't get the tax breaks, they might not have relocated to Memphis, but once there, they cost taxpayer money.

[ATLBrain]

The great thing about PILOT incentives (as opposed to others) is that they are equitable in that virtually everyone can qualify for them and they are proportional to (and depend on) the investment made.

This is a huge issue with existing companies in the area. Longstanding companies can feel short-changed (actually their leaders do) if a new company is lured to the area with a blank check. But they can qualify for PILOT incentives too.

Regarding the payment of taxes... the plan is for the new employees to pay their taxes immediately and (thus increasing the tax base), and the company will pay its share when the PILOT term expires. Plus, the company will pay incidental taxes (e.g. sales tax) in the meantime. This is not insignificant.