incentives

State putting $12M into St. Jude Children’s Hospital expansion

News release from the governor’s office

MEMPHIS, Tenn. — Tennessee Gov. Bill Haslam and Economic and Community Development Commissioner Randy Boyd on Thursday announced that the state of Tennessee, along with the city of Memphis, will invest in public infrastructure surrounding St. Jude Children’s Research Hospital in Memphis.

 

The state will invest $12 million in FastTrack funding to improve the public infrastructure surrounding the St. Jude campus in downtown Memphis, which will complement the research institution’s expansion efforts announced in 2015, and will eventually lead to the creation of 1,800 new jobs in Shelby County.

“St. Jude is known around the world for its research and treatment of catastrophic childhood diseases and is an anchor institution in our state and we are proud it calls Tennessee its home,” Haslam said. “It means a great deal to be able to assist this world-renowned facility by supporting public infrastructure needs that will help St. Jude not only create new jobs for Tennessee, but increase its capabilities to conduct life-saving treatment and research.”

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Comptroller: TN taxpayers losing money on $200 million TNInvestco program

News release from state comptroller’s office

A performance audit from the Tennessee Comptroller’s Office has revealed the State of Tennessee has only recovered $5.3 million of its initial $200 million investment in the TNInvestco program.

The TNInvestco program, which started in 2009 and 2010, is described as a public-private venture capital program intended to help start-up companies create jobs and for the state to eventually receive a return on its investment. As of December 31, 2015, the State of Tennessee has only received 2.6% of the initial investment.

The TNInvestco program will continue until 2021, and the state should recoup more of its investment; however, the department will likely not receive a return nearing $200 million. Although state law does not require any level of recovery, auditors recommend the Department of Economic and Community Development (ECD) regularly report the amounts returned to the program to the public and the Tennessee General Assembly.

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