Waukesha — The Waukesha Common Council on Thursday approved a development agreement and project boundary that provides financial incentives for a previously announced $40 million expansion of Waukesha Electric Systems Inc. on the promise of 265 new manufacturing jobs by 2014.
The company is getting $9 million in tax incremental financing incentives toward its plant and operations expansion at 400 S. Prairie Ave. The expansion is planned so the company can produce a new line of large transformers.
Under tax incremental financing, taxes raised on new development is used to pay off debt incurred to promote the development. Only when the district is dissolved - in this case, up to 20 years later - is the higher tax base shared by overlying taxing districts such as schools and the county.
According to city records, the company has also obtained $12.45 million in federal tax credits and up to $4 million in job hiring tax credits from the Wisconsin Department of Commerce.
According to city records, 177 of the new jobs will pay between $35,000 and $50,000 and 77 will pay more than $50,000 a year. Up to 100 of the jobs are scheduled for creation in 2011.