Madison may soon invest $2.1 million to help a company develop three massive industrial buildings costing about $39 million and totaling roughly 430,000 square feet that could bring businesses and jobs to the Southeast Side.
A developer, HSA Commercial Real Estate, is proposing a phased project to build two buildings of 169,000 square feet and one of 91,200 square feet over several years on part of the GE Healthcare property at 3030 Ohmeda Drive, just east of Interstate 90-94.
HSA would acquire a 28-acre parcel from GE’s roughly 98-acre site, while GE would continue to operate in its buildings, HSA said in its request for city financial assistance. The businesses that could occupy the new buildings include logistics, inventory management, manufacturing, packaging, assembly and quality assurance firms, it said.
The businesses would provide a broad mix of jobs, from entry-level, low-skill jobs to those requiring specific experience and more skills, HSA said. A company spokesperson could not be reached for comment.
The city, which recently created a new tax incremental financing district in the area, is moving to deliver $2.1 million in TIF support to the industrial development.
The $2.1 million represents about 55% of the new property taxes that would be generated by the development during the life of the TIF district, with the city expected to recoup its investment after nine years, according to a report by city TIF coordinator Joe Gromacki.
The city is also investing $1 million in TIF funds into infrastructure projects adjacent to the GE Healthcare property.
Alds. Jael Currie and Yannette Figueroa Cole and Mayor Satya Rhodes-Conway are sponsoring a resolution to provide the city support that was approved by the Finance Committee on Monday.
Currie, whose 16th District includes the site, said she supported creation of the TIF district because of its anticipated ability to ensure public works improvements and provide financial assistance to businesses and create jobs. The specific TIF investment will deliver much-needed modern industrial space, she said.
In a memo to the council, Matt Mikolajewski, the city’s economic development director, said the city’s industrial market has a relatively low vacancy rate of 3.5%, and that the area where the project would be located has a 2.9% vacancy rate.
Further, many of the industrial spaces available in the community no longer meet the dimensional needs and efficiency requirements of modern industrial users, while the proposal is taking advantage of an underused part of an existing industrial site, he said.