Milk-Carton Tom threatens lawsuits over Talgo.
Milwaukee officials plan to spend up to $35 million making improvements to the Tower Automotive sites, which the city purchased last year for $4.5 million from a Milwaukee investors group. Talgo will lease from the city a building on the corner of 27th and Townsend streets, along with 15 acres west of the building that contains an existing rail line. --BizJournal Mar/10
Talgo will lease 133,000 square feet in a 300,000-square-foot building owned by the city Redevelopment Authority. Talgo will pay $2.59 a square foot annually, which Marcoux said is market rate, for a proposed four-year lease with two five-year renewal options.
The Redevelopment Authority in December bought 84 acres of the former Tower site for $3.5 million. The property is bordered roughly by W. Capitol Drive, railroad tracks, W. Townsend St. and N. 27th St. Talgo's future home is just north of Townsend St., about one block west of 27th St.
Last fall, the Common Council approved Mayor Tom Barrett's $34.6 million plan to redevelop the 84 acres into the Century City business park, as well as new retail and housing. The city's spending includes $4 million to renovate the Talgo building, Marcoux said.
The funding to redevelop the entire site includes $9 million from state and federal grants, and tax credits.
Of the $25.6 million in city funds, $15.6 million will be repaid through the new development's property taxes, and by rental and land sale income from the business park. That payback will take an estimated 26 years. The development costs include demolition, environmental cleanup and new streets. --JSOnline March/10