MEDC can assist with site location and real estate purchases through its partnership with the City of Milwaukee and the Redevelopment Authority of the City of Milwaukee. this includes access to Tax Incremental Financing, Industrial Revenue Bonds, and Brownfields Redevelopment Properties. In addition, a comprehensive listing of commercial and industrial properties for sale or lease is available at the Milwaukee 7's website, www.choosemilwaukee.com
Tax Credits: MEDC can assist you with information regarding several state and federal tax credit programs. These include federal and state tax credits available for job creation through the Renewal Community Wage Credit and envrionmental remediation and technology investments depending upon on location and program eligibility.
www. mkedcd.org/projects/rc/index.html
Environmental Resources: MEDC can put you in touch with a variety of Department of City Development (DCD) programs for environmental resources and brownfields redevelopment programs. These include grants and low interest loans for qualifying projects where environmental remediation will result in job creation and tax generation for abandoned properties. www.mkedcd.org/brownfields/index.html
Industrial Revenue Bonds: The City of Milwaukee and its Redevelopment Authority issue tax-exempt industrial development revenue bonds to finance projects for manufacturers, building construction, renovation, machinery and equipment of manufacturing facilities are eligible projects for industrial revenue bonds. Bonds are issued by a municipality in the name of the company. The costs of land, facility construction or renovation, new equipment, architectural and engineering studies, site improvements and interest during construction are all eligible for financing. The applicant is responsible for all debt service. Bonds are exempt from federal income tax and, in some cases, state income taxes.
This program has provided nearly $685 million in financing to more than 200 Milwaukee firms.
Uses
- Long-term financing depending upon life of assets.
- Advantages: Fixed or variable rates.
- Fees: $1,000 to Authority with initial application and .075% of the bond amount upon issuance.
- Participating underwriters will charge from 1 to 1.5% plus out-of-pocket costs.
- Bonds are typically secured by a bank letter-of-credit.
- Certain banks purchase these instruments for their own accounts, thus eliminating the underwriter and related costs.
Timing
Generally, a company should not incur project costs (except site purchase) prior to City or Authority's adoption of an Initial Resolution. Under IRS code, only costs incurred no more than 60 days prior to the adoption of the initial resolution can be rolled into subsequent bond issue. Final bond issuance generally takes place 60 to 90 days later, depending on negotiations between underwriters, borrower and letter-of-credit bank.
