New Manufacturing Facility
Scenario
The operation of an excavation equipment and parts manufacturer, in Wisconsin, was inefficient due to the layout of their existing facility and safety issues with their landlord. The options available to the company were to connect two of the existing buildings, build a new facility or relocate to Illinois. Early on it was determined that the new facility or relocation were the only feasible options.
Outcome
Our team was hired to negotiate the economic incentives and to determine what the best options were for the company. The local community and state both supported the project, especially since the area could not afford more welding and manufacturing jobs moving out of state. The project consisted of the building a 100,000 sq. ft facility with $9.0 million projected investment in the building and equipment. The incentives offered included 15 acres of undeveloped land valued at $445,000, $1.0 million TI reimbursement grant for improvements external to the building and equipment purchased, $1.0 million 2% fixed loan 8 year with a balloon on a 20 year amortization schedule of which $250,000 was forgivable with job creation, public infrastructure and site improvements by the community valued at $787,000.
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