Cheese producer secures $5.6 million in state and local financial incentives necessary to break ground on $40 million plant

Our client’s need

A $200 million producer of specialty and artisan cheeses and premium fresh dairy products faced a $5.6 million financial gap in the development of a planned $40 million, 77,000 square foot state of the art specialty cheese manufacturing plant due to start-up and training requirements. Therefore, the producer needed to select a plant location which provided the lowest overall costs to ensure the best chance of success.

Baker Tilly solution

To reduce upfront costs, the producer needed to determine the availability of public sector assistance in their potential sites. They also needed a tax climate competitive with surrounding states, encouraging of business investment, and averse to imposing high compliance costs on taxpayers to achieve the lowest overall costs. With these goals in mind, Baker Tilly helped the company evaluate the financial considerations of three potential 20-acre sites for the plant in three different municipalities across two states, and negotiate the terms of the incentives offered by the selected site.

Results achieved

With Baker Tilly at their side, they selected a site in which they were able to close their entire $5.6 million funding gap with assistance from municipal and state governments, as well as secure reduced electricity rates from the local utility.

For more information on this topic, or to learn how Baker Tilly specialists can help, contact our team.