Thanks to a $10.4 million, 15-year expansion payment-in-lieu-of-taxes incentive from the Economic Development Growth Engine Sedgwick Claims Management Services, Inc. will consolidate and expand its two current locations in Memphis into one global headquarters at 8155 T&B Boulevard in East Memphis.
Sedgwick, which was founded in 1969, has grown into a global provider of technology-enabled risk and benefits solutions, delivering cost-effective claims management, risk consulting, and other services at 275 offices located in the United States, Canada, U.K., and Ireland.
“Sedgwick is a great local company, one that is a community advocate and very engaged in the community,” said EDGE President and CEO Reid Dulberger. “They did their due diligence and looked at other communities, and they ultimately concluded that Memphis offered them the best chance for success and continued growth in their company.”
Construction will get underway on the 245,808-square-foot facility at 8155 T&B Blvd. early next year. The building’s current tenant, electrical component manufacturing company Thomas & Betts Corp., is currently searching for new space.
The terms of the PILOT for Sedgwick include the company retaining 865 jobs, creating 130 new jobs, and making $33 million worth of capital investments to its new global headquarters located at 8155 T&B Boulevard. Sedgwick is also required to spend at least $4 million with certified locally owned businesses.
EDGE estimates a total of $72.3 million worth of local tax revenues will be generated by the PILOT across the 15-year term.
The firm had other low-cost options to move to one of their facilities in Atlanta, Chicago, Columbus, Dallas, LA and Portland, but chose to remain in Memphis.
“Very often we find that we simply don’t have those kind of resources or programs available to us,” he said.
“With a company like Sedgwick, obviously we were able to prevail nonetheless with a combination of the quality of our community, the fact that they are here and an ingrained part of the community, and we were able to put a tax abatement on the table with the state of Tennessee participating in the incentive package.”
Sedgwick joins a trend of corporations that have chosen to remain and expand their corporate headquarters in Shelby County, including Evergreen Packaging, International Paper, LEDIC, and ServiceMaster.