Fronius USA, LLC, a wholly owned subsidiary of Fronius International GmbH of Austria, required help finding a site for its new North American headquarters and solar inverter manufacturing facility. Additionally, the company needed expert negotiating help to obtain the best possible incentive package that would yield the optimum return-on-investment for the project.
AGG’s representation began with developing a negotiating strategy that initially included 10 states. The project team eventually narrowed that list to two states and communities, which were invited to give “best and final” offers. AGG helped Fronius evaluate incentives offers and suggested improvements; performed legal due diligence with regards to proposed sites; prepared documents for site acquisition and for commercial arrangements with suppliers and customers; and provided “business set-up” advice relating to corporate, employment and commercial matters.
Mitch Daniels of Indiana announced that Fronius would locate in Portage, investing $40 million and eventually employing 700 people. In the lead up to that announcement, AGG helped the company obtain an incentive package valued at about $20 million, including a $9.5 million federal Energy Department stimulus program (ARRA) grant disbursed by the State of Indiana, $4.5 million in refundable State of Indiana income tax credits, $1 million in payroll reimbursement during certain employee training, and a 20-year real and personal property tax abatement.