Wauwatosa approves TIF funding for office building at Research Park

The Wauwatosa Common Council approved a term sheet June 16 that would provide Irgens with $4.5 million in financial assistance for its plans to build a four-story office building at 10100 Innovation Drive in the Milwaukee County Research Park.

Under the agreement, Irgens estimates it will take on a total of $32.5 million in development costs for the 155,000-square-foot office building and parking structure. The city would then reimburse Irgens $4.5 million for the parking structure, using money from the increased property taxes on the development through a tax-incremental finance district.

Irgens estimates the property will be valued at $22 million when the project is done. The developer has already named the largest tenant for the office building, Zywave, a software company outgrowing its space at 10700 Research Drive.

As part of the term sheet, city officials agreed to pursue an extension of the TIF district at Innovation Campus to include the property at 10100 Innovation Drive to facilitate the financing.

In negotiating with city officials, Irgens made several changes to its plans and financing request. Some aldermen said Irgens' original request would likely have been denied by the council, but the final term sheet was approved with only two dissenting votes, from Aldermen Tim Hanson and Michael Walsh.

Walsh he thought the site could be developed without financial assistance from the city. He said he thought his constituents would disapprove of spending tax dollars on the project.

"I continue to hear from my constituents that they're having a hard time," Walsh said. "They're looking for some tax relief and this doesn't help in that short, painful term."

After reviewing the original proposal, aldermen said they wanted to see more density and public benefits to merit the financial assistance.

To increase the value to the city, Irgens proposed developing a second office building at 10000 Innovation Drive, next to the first. Irgens said it would not need financial assistance for the second building, which would be at least 50,000 square feet.

As incentive to complete the second building, the city promised to speed up TIF reimbursements on the first building if Irgens starts constructing the second building within 3 years of finishing the first. If Irgens does not start construction within 5 years, payments would be slowed, unless the project is denied by the city or is hindered by market conditions.

Also in response to comments from aldermen, Irgens presented plans for a gathering space on the property where there could be food trucks, entertainment and recreational activities. Irgens also agreed to pay up to $50,000 for a bike share station if the city requests one as part of a possible bike-share system.

Irgens still needs other permitting approvals from the city before its project can move forward.