Engineering co. seeks tax incentive for Memphis expansion

Logical Systems, an engineering company that provides high-tech manufacturing solutions worldwide, wants to shift around its Memphis-area presence, and it’s applying for a local tax incentive to do so.

The company, which specializes in control systems integration encompassing the computer control of manufacturing equipment, has outgrown the facilities in Bartlett it’s occupied for several years and has identified property south of U.S. 64 that meets its expansion needs. It’s applying for a 9-year payment-in-lieu-of-taxes (PILOT) benefit that would save the company roughly $423,000 in taxes.

A few years ago, the company opened an office in Colorado that’s grown to be its largest office, and its two largest clients – Xcel Energy and MillerCoors – are located there. So there are advantages to boosting its presence there, according to the company, because it would put senior management closer to its two largest clients and allow more direct management of its largest branch.

The company also says it now incurs “substantial travel costs” to the Colorado location and achieves “poorer results than if we located there,” according to its PILOT application. However, the company notes that one offset to that is the local PILOT program.

“Approval of the PILOT program … would allow LSI to commit to staying in Memphis and continue our efforts to provide support to local manufacturers,” the company wrote.

The company’s application is scheduled to be voted on July 18 by the city-county Economic Development Growth Engine Board.