While COVID-19 has hampered or shuttered many a business across the globe, one new Memphis venture has capitalized on a pressing need.
Pristex Medical was formed in May 2020 by Gabe Velasquez and Kyle Wallgren to respond to the coronavirus crisis. The company has handled the sales and distribution of personal protective equipment (PPE), getting them from warehouses to the entities that need them — like hospitals.
But, with an ongoing PPE shortage, Pristex Medical has opted to form its own manufacturing arm, Pristex Solutions. The newly formed company is now seeking a 13-year Jobs PILOT (payment-in-lieu-of-taxes) from the Economic Development Growth Engine (EDGE) for Memphis & Shelby County to create jobs for 439 Memphians, who would produce household cleaning products and disinfecting wipes.
According to the EDGE Jobs PILOT Term Sheet, the proposed facility would be located at 4259 Delp St. That 7.6-acre site contains a 151,000-square-foot building that Pristex Solutions would occupy in its entirety. About $1.8 million is planned in upgrades to the building. An additional $5.3 million would be allocated for purchasing and setting-up equipment.
If approved, the EDGE Jobs PILOT analysis estimates a tax benefit to local municipalities of $28.5 million over the course of the PILOT term and a tax incentive of $1.5 million. Wages for the 439 employees would average $34,644.
The application to the EDGE board also states that the ownership group is evaluating locations in Texas and Mississippi.
In addition to Velasquez and Wallgren, Bill Ganus — a well-known Memphis entrepreneur — submitted the EDGE applications for Pristex Solutions. Keith Jaworski was listed as the president and plant manager.
The project will go before the EDGE board Wednesday, Oct.21.