REAL ESTATE CONSULTING FOR NEW PLANT
The Challenge:
A Global Fortune 250 concrete building and hardscape products client retained Wildmor Advisors to consult with maximizing economic development incentives to increase the feasibility of a new initiative that would require a new plant to be located near one of the client’s existing plants for another product. Wildmor studied the client’s existing operations, the plans and desired needs for the new plant. Wildmor learned the unique challenges the client faced to assist in determining the optimal location. Simultaneously, Wildmor engaged officials with the states of North Carolina, South Carolina, Tennessee and Georgia in possible economic development incentives for the number of projected jobs and the total capital investment of the new plant.
The Solution:
After collecting, analyzing and consulting with the client, South Carolina was determined to be the optimal location with the best incentive package to assist in the feasibility of the proposed operation. Wildmor assisted in evaluating the various site alternatives. After multiple rounds of negotiations with the various economic development agencies, our client ultimately decided upon South Carolina as the best site and incentive package combination to locate their new plant.
Wildmor was successful in obtaining a wide ranging array of economic development incentives, including:
State Cash Grants (to offset construction costs)
Utility company cash grants (to offset costs of extending utilities)
Job Development Credits
Sales Tax Credits
Fee-In-Lieu of Property Tax Credits (payment of a set fee in lieu of a higher property tax)
Special Source Revenue Credit incentive (a capital improvements credit that reduces a company’s property taxes for a period of years)
Wildmor increased the cash grants by 628% to offset capital outlay to develop the site and the physical plant
The Fee-in-lieu of Property Tax incentive amount was increased by 11% for thirty years
The Special Source Revenue Credit was increased by 272% and extended from ten years to fifteen years for to decrease the tax liability and increase the margins on a year-over-year basis
Scope of services:
Site Selection
Supply Chain Analytics
Incentive Negotiations
Labor Analytics
Real Estate Consulting
