Charter Manufacturing, Inc. (the Sponsor) received a NMTC allocation of $17 million including $8 million from FIRE and the remainder from a third-party CDE to finance the expansion of two existing locations in Milwaukee, WI and equipment purchases to support new production lines. The Project will increase production capacity of cold rolled and forming manufacturing to produce engineered shaped wire, cold finished bar, and cold-headed and stamped components.
The Project included a new production line and upgrades to the Company’s existing production Line 2 to improve safety, reduce downtime and improve efficiency in welding and grinding, which, according to the Sponsor, make for a safer space and improve workforce retention. According to the Sponsor, its current facilities do not have the production capacity to stay competitive within the cold rolled and forming manufacturing industry.
The Sponsor is focused on improving the quality of existing jobs and creating 16 additional jobs in the low-income community. The Sponsor has also indicated the business’s culture focus and its commitment to providing the best working conditions for its current employees and creating quality career.
opportunities within the Project’s neighborhood. The Project allow Charter Manufacturing to create quality and accessible jobs in a severely distressed community. The Project is seeking a total New Market Tax Credit allocation of $17 million, which will provide the necessary subsidy needed for this Project to move forward. The Sponsor indicates that the Project will create growth opportunities at important sites within Milwaukee that will allow Charter Manufacturing to remain competitive within its industry.
Project CDE Alignment
The Project is in alignment with FIRE’s 2018 and 2020 NMTC allocations in that it supports an operating business that focuses on cold rolled steel manufacturing that will create accessible job opportunities in a severely distressed census tract within Milwaukee, WI. The Menomonee Valley location is characterized by a poverty rate of 63.20% poverty, income of 19.48% the area median, and an unemployment rate 3.75x the national average. The 81st Streety location is characterized by 28.6% poverty, income of 44.1% the area median, and being in a qualified opportunity zone. Lastly, 16 jobs will be created because of the Project.
Direct, Permanent Jobs Created and Retained at Facilities
Based on information provided by the Sponsor, it is estimated that 16 new full-time direct positions will be created because of the Project Based on Lightcast economic software, project operations are anticipated to create 20 indirect jobs.
Temporary Job Creation
Based on information provided by the Sponsor and Lightcast economic modeling software, it is estimated that the construction of the Project will create 51 full-time temporary installation jobs. Of the 51 temporary installation jobs, 70%, or 36 positions, are anticipated to be accessible to LIP’s. Based on Lightcast economic impact modeling software, the Project will create 41 indirect jobs.
Quality Job Creation
FIRE identifies a “quality job” as one that offers a “living wage” within a community and, at minimum, health insurance, retirement benefits, job advancement, and training. FIRE’s living wage calculation is based on the Massachusetts Institute of Technology’s (“MIT”) Living Wage Calculator, a nationally recognized source for living wages, utilizing a base of 1 working adult (consistent with the allocation application which requests data on quality jobs for individuals).
At the time according to the MIT Living Wage Calculator, the living wage for an individual in Milwaukee County is $16.63 per hour or $34,590 annually based on a 2,080 hour work year.
Jobs Accessible to Low Income Persons and/or Low-Income Community Residents
For the purpose of this analysis, a “low-income person accessible job” is defined as a job that an individual who possesses a high school education or less could access, and whose median household income is at or below 80 percent of the area median income. Based on information provided by the Sponsor, of the newly created positions, it is estimated that 100%, or 16 jobs, will be accessible to low-income persons.
Additionally, using the demographic software Esri, and a 22.3-minute average commute time reflects an anticipated 37.5% Low-Income Community Resident penetration rate at the 81st Street subject site and a 50% Low-Income Community Resident penetration rate at the Menomonee Valley subject site.
Total Project Costs $17,000,000
FIRE NMTC Allocation $8,000,000
NMTC Investor Bremer Bank, N.A.
Closing Date April 2023
3700 Milwaukee Road - Milwaukee location
7850 N. 81st Street - Milwaukee location
FIRE welcomes requests for NMTC’s throughout the year as we work to maintain an active pipeline of viable and potential projects throughout the region.