Memphis city and Shelby County leaders approved to give a 15-year tax break incentive package worth $59 million to International Paper, which means 2,274 jobs will remain in Memphis.
The EDGE Board, the agency over tax abatements of this kind, estimates a return of $226 million. City and county leaders say the investment could return as much as $4 on every $1 foregone.
MORE: International Paper asks for $57M tax break
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The retention pilot will also add 101 jobs. The jobs will have an average salary of $164,000 annually.
International Paper will add a fourth tower and parking structure to their location on Poplar Avenue.
The 15-year abatement will apply to the new structure and the existing buildings on site and a couple more in other locations in Shelby County. The Fortune 500 company says it considered expanding operations at a facility out of state, or even completely relocating its headquarters, but chose to expand in Shelby County, despite this being the highest cost option.
"Memphis is our home, and it's disruptive also to move," said Tom Kadien, International Paper Senior Vice President. "So we tried to find the right compromise and I think with the help of the EDGE Board and both mayors we were able to find the right balance between cost and being able to run our business."
International paper plans to break ground this year and have construction complete by 2015.