Nike opening facility in Mississippi without government incentives

Nike doesn’t need state incentives to locate a new logistics facility in north Mississippi, but a medical supply business does to relocate to the same area.

Nike announced that it will add to its workforce of 3,200 at four Memphis-area facilities across the state line in Marshall County, just below the Tennessee city of Collierville and conveniently located on Interstate 269. The new facility is expected to open in spring 2020 and create 250 jobs related to logistics and supply chain.

According to Mississippi Development Authority spokesperson Tammy Craft, Nike will receive no subsidies from state taxpayers.

Medline Industries will bring 450 jobs to Southaven in DeSoto County and will receive $3.8 million from state taxpayers, with a $100,000 grant to relocate equipment and a $3.7 million grant for infrastructure, according to Craft.

The distribution hub will cost the company $46 million and the state said in the news release that some of the jobs will be existing positions filled by employees at its Memphis location, but that a large number will be created for Mississippi residents. That adds up to $8,444 per job.

Medline plans to begin operations in Southaven in early 2021.

"Medline's investment in the Southaven community and the creation of hundreds of new jobs marks the beginning of a long-lasting business partnership with the state of Mississippi and a long-term commitment to the people of DeSoto County," Gov. Phil Bryant said in a news release.

Earlier in February, DeSoto County received another heavily subsidized economic development project. German agricultural implement company Krone will receive a $7.3 million in property and inventory tax breaks, in addition to a $250,000 grant to relocate its equipment.

The company is moving its headquarters and 45 jobs across the state line from Memphis to Olive Branch.

Krone could also receive incentives that rebate some income taxes for its employees to the company, provided the workers are paid at least $37,521 annually. That could add up to $675,000 annually over the next decade.

From 2012 to 2017, taxpayers have spent $678 million in just MDA grants alone from 2012 to 2017, or about $19,765 per job.