Company plans $20 million expansion
75 jobs to be added over 3 years

Daily News

Dec. 17, 2014

GERMANTOWN - A package of state, county and village financial incentives has primed the pump for jobs at a growing Germantown company.

Cambridge Major Laboratories, W130 N10497 Washington Drive, on Tuesday announced a $20 million expansion, in part funded by loans from Washington County, job tax credits through the Wisconsin Economic Development Corp., a grant from the state Department of Workforce Development and additional incentives from the village of Germantown.

The project, to be completed by the end of 2015, will include new corporate headquarters and expand the company’s research and development and manufacturing capacity. It is expected to create 75 jobs over the next three years.

Cambridge Major employs about 180 people at its 60,000square-foot facility in the Germantown Business Park.

“Wisconsin’s strong base of research universities and talented work force, combined with the support of the state of Wisconsin, Washington County and the village of Germantown, contributed to our decision to make significant additional investments in our active pharmaceutical ingredient operations in Germantown,” said Stephan Kutzer, chief executive officer of AAIPharma Services Corp. and Cambridge, in a news release.

Cambridge was acquired by American Capital Ltd., a private equity firm based in Bethesda, Maryland, in 2012. In 2013, American Capital merged Cambridge Major with AAIPharma., a Wilmington, North Carolina-based drug maker.

“There’s always that risk with a change of leadership,” said Dean Wolter, Germantown Village Board president. “Sometimes they change direction, but they’ve decided to stay and reinvest in Washington County, which I’m very happy to see.

“We’re glad to have them and appreciate that they want to grow within our district.”

Job creation is a key element of the financial incentives package.

Washington County approved a $285,000 loan from its Attraction Fund in November. The principal will be forgiven if the company meets job creation and investment criteria. If the criteria are met, the loan will be repaid through an existing tax incremental district.

Under a tax incremental district, taxes collected on the growth in value of property in a defined district are turned over to the village as “tax increment” revenue. The village can then use those funds to fund improvements in the district.

Washington County also committed to a $200,000 low-interest loan from its Impact Revolving Loan Fund. The county created the fund in 2011 with $1 million from the county’s half-cent sales tax.

Both the Attraction Fund and the Impact Revolving Loan Fund are administered by Economic Development Washington County.

The village also committed up to $378,000 in financial incentives. A portion of the company’s taxes in the tax incremental district will be returned, Wolter said.

“It’s one of the first businesses in that district,” Wolter said. “They were very happy that we were able to step up and offer this.”

The Wisconsin Economic Development Corp. gave $800,000 in jobs tax credits and the state Department of Workforce Development added a $400,000 Wisconsin Fast Forward worker training grant to help fuel Cambridge’s expansion.

Job tax credits can be as much as 10 percent of the annual wages of employees earning at least $30,000 but not more than $100,000. The amount of the credit depends on the number of jobs created.

The DWD grant will support training more than 250 employees through an industry- specific training program.