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
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.