Milwaukee Offices Get $8 Million in New Market Tax Credits

Development will anchor creative media firms near Milwaukee design institute

MADISON (June 30, 2005) - Governor Jim Doyle announced today that New Markets Tax Credits of $7,958,324 have been awarded to an investment entity whose principals are restoring the historic Alfred Uihlein Building in Milwaukee.

The four-story office building at 318 N. Water St. will provide space for several anchor tenants that provide creative media services, plus other commercial ventures.

Offices are completely leased and the development will retain a minimum of 142 jobs in the city. The businesses are expected to recruit workers from the nearby Milwaukee Institute of Art and Design (MIAD).

"This location provides significant employment opportunities for MIAD students who are looking for jobs in the graphics and creative media markets," Governor Doyle said. "That's a win-win for downtown Milwaukee and its efforts to retain and attract creative-class workers and businesses."

Governor Doyle said that as a direct result of this investment, the occupant owners will provide internships for minority MIAD students, and free movie studio space for minority film makers based in Milwaukee.

Partners in the investment firm developing the property, Graceville, LLC, are relocating their businesses to the building as anchor tenants occupying more than half the building's 52,000 square feet of office space. The remaining square footage has been leased to other tenants.

The tax credits are being awarded by the Wisconsin Community Development Legacy Fund (WCDLF). The credits are part of a $100 million allocation secured by the Wisconsin Housing and Economic Development Authority (WHEDA) and Legacy Bancorp, partners in the fund.

Graceville LLC will use the credits to pay out a construction note for the building's rehabilitation, allowing Graceville to secure better loan terms and equity. US Bank provided financing.

For the project Graceville also has succeeded in acquiring federal and state historic tax credits, as well as a façade grant from the City of Milwaukee.

Anchor tenants will include:

Hanson Dodge Creative, a leading Midwestern strategic design and marketing firm whose clients include Harley-Davidson; Trek Bicycles; Hush Puppies; Credit Suisse and Baxter Health;
Purple Onion, Inc., a broadcast film production company specializing in commercial television production, documentary and corporate image programming;
Bluemark Productions, a movie production company; and
Whole Hog Productions, a woman owned Milwaukee branding firm.

Under the Doyle Administration, WHEDA and its partners created the WCDLF in a successful quest for the federal New Markets Tax Credits. The credits are targeted to investments in distressed economic areas of Wisconsin.

WHEDA is Wisconsin's state housing finance authority. Its goal is to stimulate and preserve affordable housing, small business, and agribusiness.