Client: City of Brookfield (WI)
In order to facilitate the feasible development of a 114,500-square-foot building containing office, research and development, and manufacturing space along with parking estimated to cost a total of approximately $20.0 million to accommodate the expansion of the corporate campus of Milwaukee Electric Tool, the City of Brookfield was asked to provide financial assistance of an approximately $3,489,500 Tax Incremental District (“TID”) incentive.
The City of Brookfield retained GG+A to evaluate the request. To do so, GG+A, conducted independent market research and obtained information from the company’s representatives to structure a financial analysis of the proposed development, occupancy, and hypothetical sale of the occupied building in order to identify if the subsidy is needed to bridge a feasibility gap.
In addition, GG+A used an input-output model to estimate the direct and indirect impacts of the expansion in terms of: (1) employment; (2) labor income (the sum of wages and salaries); and (3) output (the volume of production of all goods and services).
GG+A also made a comparison of the estimated value of property taxes generated by the development and occupancy of the proposed office building relative to the amount of TID assistance requested.
GG+A prepared a report covering the findings, conclusions, and recommendations. Brookfield accepted the report and elected to provide the requested incentives. The first building in the campus expansion was completed in late 2017.