Medline Distribution Center
Background:
Medline, the nation’s largest privately held manufacturer and distributor of medical supplies and clinical solutions purchased 51 acres of land for a new distribution center in Auburndale, Florida. They planned to create 100 new jobs to the city. Medline's plans were to also design and construct warehousing to achieve Leadership in Energy and Environmental Design or LEED certification in addition to a variety of sustainable features.
Requirement/problem:
Due to statutory requirements, state and local economic development incentives were not possible for this project.
Solution:
While targeted wages were a limiting factor on local and state economic incentive programs, they were perfect for other federal programs that contributed drawbacks were federal programs New Markets Tax Credits financing 10% of the project.
Reward/benefit:
After a 7-year interest only payback period of the NMTC loans, the borrower was able to obtain an efficient capital stack.