Wisconsin Economic Development Corp.: Board approves tax incentives for A.Y. McDonald expansion in Grant County


Source: Wisconsin Business

The Board of Directors of the Wisconsin Economic Development Corporation (WEDC) today approved awarding up to $5.85 million in performance-based tax credits to assist A.Y. McDonald in expanding its operations in Grant County. The company plans to invest at least $340 million in Kieler and Dickeyville and create 173 high-paying jobs over the next five years.

A.Y. McDonald Mfg. Co., a leading manufacturer of waterworks brass, plumbing valves, pumps, and natural gas products, is constructing a new state-of-the-art brass foundry, representing the largest project in the company’s 167-year history. The new foundry will be located in Dickeyville. The company also plans to expand use of an existing facility in Kieler to support its manufacturing operations.

“A.Y. McDonald’s decision to expand in Wisconsin is a win for the communities of Kieler and Dickeyville, for the workers and families in those communities, and for state-of-the-art manufacturing in Wisconsin,” said Missy Hughes, secretary and CEO of WEDC. “Our state’s manufacturers are among the best in the world, and WEDC is pleased to partner with a company that is forward-looking and ready to grow.”

“This new foundry project not only demonstrates a commitment to our industry but more importantly, a commitment to our people,” said Rob McDonald, CEO of A.Y. McDonald Mfg. Co. “We made the commitment early on to build our next foundry where our current foundry co-workers live, and that is right here in the tri-state area. Our new foundry will be built on a 100-acre parcel in a new industrial park being co-developed by A.Y. McDonald and Jeff Kaiser. This large parcel will serve the growth needs of the company for generations to come.”

Construction on the new foundry is under way and aims to be fully operational in 2026. The company’s Dubuque headquarters and factory operations will continue and be unaffected by the future move of foundry operations.

The Village of Dickeyville last year created a tax incremental financing district to assist with public improvements for the project.

“This is a great thing for Dickeyville,” said Mayor Matt Gantenbein. “I grew up here and ran for mayor to help the community grow and provide opportunities for families in the future. I’m glad A.Y. McDonald chose Dickeyville and appreciate all the partners who helped make this happen.”

 The expansion will have a benefit beyond Dickeyville and Kieler, local officials say.

“The overall economic impact of this project goes well beyond just the foundry,” said Ron Brisbois, Grant County economic development director. “This project has forged a pathway for future economic growth for the entire county.”

Under the plan approved by the WEDC board and submitted to the Legislature’s Joint Committee on Finance for review, the company is eligible for performance-based Enterprise Zone tax credits if it creates a specific number of new jobs and meets the investment criteria.

In addition to the new Enterprise Zone for A.Y. McDonald, WEDC has 19 active Enterprise Zone designations throughout the state, which are expected to result in over $3.8 billion in capital investment, the retention of almost 17,000 jobs, and the creation of nearly 20,000 new jobs. Under state law, the Legislature’s Joint Committee on Finance has 14 days to review the creation of a new Enterprise Zone. The zone will automatically be created unless the committee takes action.

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