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Village grant helps secure Kapco’s local expansion PDF Print E-mail
Wednesday, 12 August 2015 20:55

Grafton agrees to give firm as much as $150,000 in tax incentives for project

A development agreement that could give Kapco Inc. as much as $150,000 in tax incentives was recently approved by the Village of Grafton.

The Village Board last month finalized an accord that calls for the village to pay the firm a maximum of $30,000 annually for five years to assist with the expansion of local manufacturing facilities.

The agreement is with Kacmarcik Family LLC, which owns the company property at 1000 Badger Cir.

Kapco will receive cash grants through 2020 from revenue generated by Grafton’s No. 2 tax incremental financing district, where the facilities are located.

Each grant will be equal to 45% of new taxes produced by the expansion. Payments will be made on or before July 1 annually, starting with the 2016 tax year.

Kapco, a metal-stamping and fabrications company, is nearing completion of an 80,000-square-foot addition to its Grafton plant.

Company officials said the $7 million project will allow the firm to expand its manufacturing space, add more equipment and create 100 new jobs in the next three years. The addition, which doubles the size of the former plant, is expected to be finished in the next few weeks.

The expansion will give Kapco 600,000 square feet of total space in its seven Wisconsin facilities.

Village Administrator Darrell Hofland said the agreement is designed to help ensure Kapco’s continued presence in Grafton.

“As part of Kapco’s plans for constructing new manufacturing space, they were looking at communities outside Grafton,” Hofland said.

“The cash grant is an effort by the village to be competitive with the other communities’ offerings and encourage local growth.”

Hofland said the agreement is with Kacmarcik Family LLC because it pays taxes on the property and leases the land to the company.

Hofland said the cash-grant agreement is allowed under terms of tax incremental financing districts, which provide incentives to attract, retain and expand businesses.

Although TIF No. 2 is scheduled to be paid off in four more years, Hofland said the village is working with state officials to secure an additional year to cover the Kapco agreement.

Kapco also received a boost from the state last month. The Wisconsin Economic Development Corp. awarded the firm up to $500,000 in state tax credits over the next three years to support the plant expansion.

The amount of credits awarded will be determined by the number of jobs created during that time.

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