PLATTEVILLE, Wis. — A Fortune 500 multinational corporation intends to occupy a new warehousing, assembly and distribution facility in the Platteville Industrial Park, a $20 million project that, if finalized, would be the largest in the park’s history.
Indianapolis developer Scannell Properties is overseeing the construction of the 342,000-square-foot facility and plans to lease it to the corporation, which intends to employ 200 to 220 workers.
“I know our client is very excited,” said Patrick Marcotte, director of project development at Scannell. “This occupier will be a great addition and a great neighbor.”
The corporation has committed city officials and Scannell to a confidentiality agreement until a contract is signed in coming weeks.
Construction on the building — located adjacent to Vision Drive and Eastside Road — could begin in April 2021 and conclude in March 2022. The corporation would commit to leasing the premises for 10 years.
Platteville Common Council members on Tuesday initiated the process to consolidate five parcels in the industrial park into a nearly 21-acre lot, with the intent of selling it to Scannell Properties for $20.78.
But the biggest incentive the city offered is the $1.3 million that had already been invested in the site’s preparation, which includes grading, road access and utility service.
“Several sites were being looked at,” said Ela Kakde, executive director of Platteville Area Industrial Development Corp. “If we did not have this … we would not have been in the running.”
Discussions on the deal began in September, she said. Development corporation officials also assembled a team that includes Southwest Wisconsin Workforce Development Board, Southwest Wisconsin Technical College and University of Wisconsin-Platteville to help the company recruit employees.
City staff do not know how much property tax the new facility would generate because the State of Wisconsin assesses industrial projects.
But it is certain to increase the value of the tax increment finance district that encompasses the industrial park — generating additional revenue the city can use to repay debts it incurred when it made land improvements to the entire complex.
Without factoring in the new development, the district is projected to require $1.4 million from the city’s general fund for the next seven years.
“That will be a huge impact for that district, which has a big impact on our overall city budget,” said Joe Carroll, the city’s community development director.
Kakde said the project highlights an industry trend, in which clients desire properties spanning 10 to 15 acres. Remaining lots in the Platteville Industrial Park are just two to four acres, raising the question of whether the city should consider an expansion, she said.
Council members plan to finalize the sale of the land at their Feb. 9 meeting.