MEMPHIS, Tenn. — An unelected board of 11 people in this city soon will decide whether to grant $9.5 million in tax incentives to the IKEA corporation.
Company officials want to open their first store in Tennessee and are asking city and county officials for that much government assistance through its first 11 years of operation.
The Economic Development Growth Engine, a joint city/county board, has the task of expanding economic development programs in Memphis and Shelby County.
Mayors from both the city and the county appoint the 11 board members.
EDGE spokesman Trey Heath said Friday that board members are scheduled to hear the matter Jan. 21.
According to an application IKEA filed with the city, most states surrounding Tennessee don’t have an IKEA store. Company officials suggested Memphis residents ought to consider themselves lucky.
“The location of a store in a city speaks well of a metropolitan area’s status and growth potential (and is usually a highly coveted opportunity),” IKEA officials wrote.
Officials with the European-based company described just how selective they are in choosing store locations. IKEA’s application reveals the company picks communities based on where it can get the most generous tax incentives.
Those areas include St. Louis, Merriam, Kan., and Centennial, Colo., according to IKEA’s application with the city.
Company officials would consider its Memphis location as the smallest of its 40 U.S.-based stores, they said, adding IKEA would bring 175 full-time jobs to the city.
