Memphis negotiates for new project that could bring 500 jobs

The city of Memphis and its economic development partners are working on a hush-hush project that could bring 500 new jobs to the city.

Reflecting the secrecy that now surrounds job-recruiting efforts in the wake of the Electrolux and Mitusbishi Electric deals to open Memphis plants, little is known about the new project except the potential number of jobs and the fact that a local company is involved.

The Memphis and Shelby County Industrial Development Board will hold a special meeting on the project Wednesday.

"This is what we do," said Greater Memphis Chamber of Commerce president John Moore, who declined to offer specifics on the project.

"Our policy is not to comment on any ongoing discussions we might be having with potential new projects we're working on."

The Commercial Appeal reported on the plants Electrolux and Mitsubishi Electric planned to open in Memphis before the official announcements were made, and some city and chamber officials worried that early disclosure of the companies' interest would jeopardize the projects.

Since then, city leaders and chamber officials have redoubled efforts to keep such negotiations secret.

The chamber recently began withholding the names of companies involved in potential projects from Memphis Mayor A C Wharton and Shelby County Mayor Mark Luttrell

"What we decided to do was hold back on the name of the company a bit longer, and the mayors have said, 'Fine, I don't want to know,'' said Moore. "When we share it with the mayors we use a code name."

Wharton confirmed last week that he is working on a major industrial prospect whose company name he deliberately did not learn because it could be subject to disclosure.

"We're committed to this: Before we spend any public dollars, everybody will know. That's the key. We can talk and negotiate, but before we spend any money, the public's going to know. It will be voted on in commissions and councils and industrial development boards," Wharton said.

Moore said that in the highly competitive field of economic development -- where a city's economic fortunes can turn almost overnight -- keeping prospect information confidential is paramount.

"The company doesn't want their competitors to know they are looking to expand," said Moore.

"The other thing is we don't want other cities to know we're in this," he said. "We don't want cities that aren't in the hunt to get into the hunt. They may decide they want to up the ante, which makes it more expensive for our community."

Wharton said that in many instances the employees of the companies being recruited to Memphis have little to no information about their employer's internal strategy.

"Sometimes folks inside the companies don't know, and if we blab our mouths down here, it could cause any number of problems," said Wharton. "Until we know this is a done deal, let's please keep this quiet."

Wharton, Luttrell and the chamber are also urging Shelby County's state legislative delegation to approve a bill allowing local governments to keep "sensitive" information about economic development prospects secret.

"We should be able to tell a company if they share proprietary information with us that we'll protect it for you," said Moore.

Under the proposed bill, when agreements are finalized, the terms regarding expenditures of public funding would be made public, but information deemed "sensitive" could be kept secret for five years. Trade secrets and proprietary information given to the government as part of the negotiations could be kept confidential permanently.

The bill is sponsored by Sen. Mark Norris, R-Collierville, and Rep. Larry Miller, D-Memphis. It provides that any binding contract or agreement entered into by local government that obligates public funds, together with all supporting records and documentation, is a public record as of the date the contract or agreement is entered into or signed.

Moore and Wharton each emphasized that the bill would do nothing to hide the incentives being offered to companies by local governments.

"There is no law that could ever be passed that prohibits sharing what happens with taxpayer dollars and public incentives," said Moore. "It's just when is the appropriate time to do that?"

"I have never in all my years, and I've worked a lot of these deals, had a company say, 'Give us this, but don't let the public know it,'" said Wharton. "When the time is right, all the details will become public."

The project that the IDB will hear Wednesday involves a company named TNMB LLC.

According to the Secretary of State's website, TNMB was formed earlier this month, with the law firm of Baker, Donelson, Bearman, Caldwell & Berkowitz acting as principal agent.

-- Amos Maki: 529-2351