The EDGE Board met on November 6 and approved a 15-year Jobs Payment-In-Lieu-Of-Tax (PILOT) for AAON, Inc. This incentive offer will be taken into consideration by the company as they make their expansion decision. Headquartered in Tulsa, Oklahoma, the company is considering a capital investment of $238,500,000 and creation of 291 net new jobs with an average wage of $57,232.
A leading manufacturer of air-conditioning and heating equipment, AAON produces a range of products including rooftop units, chillers, air-handling units, and geothermal heat pumps. It serves commercial and industrial markets across North America. In 2023, the company reported more than $1 billion in sales.
“Memphis continues to prove itself as a vibrant hub for economic growth and opportunity,” said EDGE President and CEO Dr. Joann Massey. “We are committed to welcoming innovative companies like AAON that invest in our community and support the creation of new jobs, further strengthening the city’s position as a key player in the manufacturing and industrial sectors.”
This expansion consideration is due to rising customer demand, necessitating additional manufacturing and production space. The primary driver behind this potential move is production capacity, closely monitored to ensure AAON can maintain and grow its output effectively. Equipment capacity is also a key factor, adjusted as needed to support the company’s operational needs. To scale production, the company will ensure access to essential resources, including raw materials, purchased parts, warehouse space, and personnel, all critical for sustaining its expansion and continued service excellence.
“Building a robust recruitment pipeline requires building strong relationships with new companies and our economic development partners, like the State of Tennessee,” said City of Memphis Mayor Paul Young. “We also believe attracting industry leaders, like AAON, will help our market become even more competitive.”
If Memphis is selected for the expansion, AAON intends to acquire a 35.66-acre property at 5106 Tradeport Dr. to develop a 787,000 square-foot Class A manufacturing and logistics facility. Staff projects a total of approximately $29.1 million in local tax revenues during the PILOT term of this project, alongside a benefit of about $39 million to the applicant, including CRC credit.