POSTED ON DECEMBER 16th, 2009
Seven Milwaukee companies receive $12 million in tax benefits
The Redevelopment Authority of the City of Milwaukee (RACM) has allocated $12 million worth of federal tax benefits to seven companies that renovated or constructed new facilities in the central city during 2009. The companies received allocations of the federal Renewal Community Commercial Revitalization Deduction, which provides an accelerated depreciation deduction period for commercial real property, either new construction or substantial rehabilitation. The Deduction is one of several federal tax incentives available to companies located within Milwaukee’s Renewal Community boundary, comprising about 80 central city census tracts.
Together, the seven firms invested more than $43 million in their projects, retaining 185 jobs. The firms expect to create 137 positions during the next three years.
"The seven firms that received Commercial Revitalization Deduction allocations this year are finding success in their central city neighborhoods," said Mayor Tom Barrett. "We are pleased to support their decisions to grow their businesses in the community and hire local workers."
The following companies received Commercial Revitalization Deduction allocations:
- First Second Street LLC, for the historic renovation of a long vacant commercial building at 209-211 S. 2nd Street. The property is occupied by John Robert Powers Agency and School. ($500,000 allocation)
- LDC-235 Pittsburgh, LLC, for renovation of a former industrial space for mixed use. The project developed 20,000 square feet of commercial space, 55 residential units, and 70 underground parking spaces at the South Waterworks development site. ($1,016,500 allocation)
- Hotel of the Arts, LLC, for renovation of a former community correctional facility at 1840 N. 6th Street into a hotel. The hotel, which opened in October, has 79 guest rooms and suites, and operates under the Days Inn and Suites flag. ($3,989,375 allocation)
- Wisconsin Arts Lab, LLC, for renovation of a former industrial building at 1422 N. 4th Street into an arts education and exhibition center. Red Line Milwaukee, which occupies the building, provides education and studio space to emerging visual artists, training these artists to serve their community as educators. ($1,241,070 allocation).
- Charter Wire, for construction of a new 160,000 square foot industrial facility at 3700 W. Milwaukee Rd. in the Menomonee Valley Industrial Center. The building opened in September. ($4,500,000 allocation)
- First Milwaukee Properties, LLC, for construction of a new 2,500 square foot medical clinic at 1930 W. Wells St. The clinic is located within a Health Professionals Shortage Area. ($410,757 allocation)
- Lange Brothers Woodwork Co., Inc., for renovation of the firm’s 12,000 square foot production facility at 3920 W. Douglas Ave. The company makes wainscot paneling, mantles, wood molding, stars, handrails, and custom cabinetry. ($342,298 allocation)
The Commercial Revitalization Deduction is allocated on a competitive basis. Eleven firms that invested $60 million in new construction and substantial renovation during 2009 submitted applications for an allocation. Allocation recommendations were based on distress of the census tract in which the project was located, number of jobs retained and created, wage levels, and the degree of revitalization spurred by the project.
Companies located within the Milwaukee Renewal Community are available for other federal tax incentives, including wage tax credits. More information is available at www.city.milwaukee.gov/RenewalCommunitytaxincentives.htm.