Milwaukee Tool is receiving an additional $8 million in state support for the second major expansion of its Brookfield headquarters and the Wisconsin Economic Development Corp. is giving the company an extra year to reach its increased job creation goals, according to an amended contract released to BizTimes Milwaukee.
The power tool maker, a subsidiary of Hong Kong-based Techtronic Industries Co. Ltd., was previously awarded $18 million in refundable state tax credits but will now be eligible to earn up to $26 million in credits. The amended contract, signed in early May by company and WEDC officials, also gives the company until 2022 to earn credits, a one-year extension from the original.
The original credits were intended to support a $35 million investment in the construction of a 200,000-square-foot office building at the company’s headquarters and the creation of 592 new jobs. Milwaukee Tool announced in January it planned to build another 114,000-square-foot office building and create an additional 350 new jobs, a $32 million project.
The company declined to comment on the increased state subsidy.
Milwaukee Tool has been growing rapidly in recent years, primarily through the replacement of corded power tools with battery-powered options and expansion into new product categories. The company had 300 employees in Brookfield in 2011, compared to 1,300 now.
When the second project was announced, the company said the project would be supported by a $3.5 million tax incremental financing district from the city of Brookfield and an undisclosed amount of support from WEDC.
Documents submitted to the city indicated Milwaukee Tool was choosing to expand in Wisconsin instead of Mississippi. The company has manufacturing operations in Mississippi and in December announced a $33.4 million investment in three facilities.
According to WEDC, Mississippi offered Milwaukee Tool $17 million in incentives to lure the second expansion project, which focuses on engineering and software development. The company requested the amended contract to financially justify the decision to pick Wisconsin over Mississippi.
Milwaukee Tool announced on May 3 it would move ahead with the expansion after receiving approvals from the city of Brookfield. At the time, WEDC officials said they were still working with the company on potential support for the project. Ty Staviski, Milwaukee Tool chief financial officer, signed the amended contract on May 4 and Mark Hogan, WEDC secretary and chief executive officer, signed it on May 10.
