Officials Say Wisconsin Finished Second On $20 Billion Intel Campus
Plus: Comparing the Intel and Foxconn proposals. And a recap of week's real estate news.
Wisconsin could have landed a $20 billion, 3,000-job manufacturing campus in Racine County.
No, it wasn’t another proposal from Foxconn.
On Friday computer chip manufacturer Intel announced its intent to build a two-factory, $20 billion campus outside of Columbus, OH. Construction is expected to begin in 2022.
Covering almost 1,000 acres, the complex is expected to house 3,000 Intel workers. Six additional fabrication facilities (fabs) could eventually be built, bringing the total investment to $100 billion.
“Intel’s actions will help build a more resilient supply chain and ensure reliable access to advanced semiconductors for years to come,” said company CEO Pat Gelsinger in a statement announcing the deal. “Intel is bringing leading capability and capacity back to the United States to strengthen the global semiconductor industry. These factories will create a new epicenter for advanced chipmaking in the U.S. that will bolster Intel’s domestic lab-to-fab pipeline and strengthen Ohio’s leadership in research and high tech.”
Southeastern Wisconsin officials said Intel nearly chose Wisconsin, declaring Racine County its second choice.
“I can only trust Intel on that,” said Metropolitan Milwaukee Association of Commerce president Tim Sheehy to Andrew Weiland. “That’s what they told us.”
Weiland, editor at BizTimes, released a feature-length piece detailing Wisconsin’s efforts as the Ohio news broke Friday morning.
The pitch, which started back in April, involved offering 471 acres of Village of Mount Pleasant-owned land once targeted at Foxconn and an additional 400 acres of privately-owned land. Foxconn would have maintained its four-building campus as part of the proposal and was aware of the deal.
“We didn’t leave any stone unturned. Our team worked on this process day and night,” said Claude Lois, the village’s development site manager, to Weiland. “We believe, when it came down, they were talking to us and we knew one other state. Up until last week we were still in constant communications with them and trying to see whatever we could do to push them our way.”
The effort involved local and state officials, including Governor Tony Evers. An incentive package, unlike what was given to Foxconn, was offered that was in accordance with Wisconsin Economic Development Corporation guidelines.
Weiland estimated the state package at approximately $2.2 billion, largely predicated on a $20 billion capital investment. The village reportedly never made a specific dollar offer.
Federal air quality regulations on eastern Racine County would have required Intel to use credits from We Energies, earned because the utility is shuttering coal power plants. The Columbus area site does not have the same restrictions. Sheehy and others told Weiland they weren’t sure if that was a deciding factor, but that Intel could have had concerns about obtaining more credits for future phases.
Weiland’s piece offers more commentary from Sheehy and other officials involved in the bid, as well as details on how leaders think the Wisconn Valley-Foxconn site is positioned to land a major tenant in the future.
And while the Intel deal requires new buildings, Ohio also has largely-empty buildings that have drawn companies. Foxconn passed on using its greenfield Wisconsin site to manufacture vehicles in a deal announced in September. The company will purchase a former General Motors factory in Lordstown, OH to build electric vehicles for Fisker and Lordstown Motors.
Is Intel Deal Anything Like What Foxconn Promised?
How similar is Intel’s proposal to the ultimately aborted, pie-in-the-sky vision from Foxconn to develop a $13 billion, 10,000-worker, 20-million-square-foot plant? Not very.
Unlike the Foxconn deal, Intel is already doing plenty of state-side manufacturing. It has fabs in Oregon, New Mexico and Arizona. The company regularly updates or builds new facilities, often colocated with existing fabs, as chip technology changes.
There is also an international shortage of chips for automobiles and other electronic devices. Intel doesn’t make chips for automakers, yet, and the plant isn’t scheduled to come online until 2025, but the company has strong demand for its products.
Foxconn’s pitch involved a company focused on lower-margin contract manufacturing making the jump into designing and developing its own products. Intel, from its 1968 Silicon Valley origin, has designed, developed, manufactured and sold its chips. The new facility, and upgrades at other plants, will give it contract manufacturing capacity.
UPDATE: The article originally referred to Weiland as the managing editor, he is the editor at BizTimes.
Office Tower Will Be Sold To Resolve Foreclosure
One of Milwaukee’s tallest buildings will soon be listed for sale to resolve a foreclosure suit.
The 35-story 100 East building is now under control of a court-appointed receiver. Friedman Real Estate Management took over management of the 435,557-square-foot building at the request of lender Wilmington Trust. Wilmington filed a foreclosure suit in April against building owner Hertz Investment Group.
An affiliate of California-based Hertz purchased the property and a skywalk-connected parking structure for $78 million in 2016. It was part of a larger transaction involving buildings in Indiana and Ohio. The two Milwaukee properties were most recently assessed for $77.87 million.
But that assessment doesn’t reflect the loss of Michael Best & Friedrich. The law firm occupied the top floors of the building at 100 E. Wisconsin Ave. before moving north to BMO Tower in 2020.
Milwaukee attorney Michael Polsky will now work to list the property for sale, part of an agreement reached on Jan. 13 during a court hearing on the case. A July 2021 filing notes that the building is approximately 50% leased, down from 88% in 2016.
Reporter Sean Ryan has more on the agreement in a Jan. 16 column. Urban Milwaukee first reported on the foreclosure action in August.
Trocadero/DiModa Building Sold, New Restaurant Planned
The flatiron-shaped tavern building at 1758 N. Water St. is under new ownership, and a new restaurant is planned.
Built in 1890 to the designs of architect Charles Kirchhoff, Jr. for the Joseph Schlitz Brewing Company, the building has long been home to a tavern.
Recent tenants have included Trocadero and DiModa Pizza, the latter of which closed in 2019.
Husband-and-wife team Alberto and Ahide Valdepena acquired the building for $985,000 from an affiliate of Wild Planet Hospitality Group, which operated DiModa.
The couple, veterans of the restaurant industry, plan to open Tauro Cocina, an Italian-Mexican fusion concept.
The Apartments Built Over a Ship
Rent at Joseph Property Development‘s Cream City Lofts comes with a free conversation starter. A couple of them actually.
Joseph has nearly completed its redevelopment of the four-story building at 170 S. 2nd St. in Walker’s Point into a 40-unit apartment complex.
The structure was originally developed by George Burnham, one of the original purveyors of Cream City bricks, in 1873 for hardware store owner John Nazro.
But the structure’s story is as much about what’s under it as what’s in it.
Zizzo’s New HQ Has Rooftop Terrace, Cafe
Zizzo Group will make the move from the Historic Third Ward to Walker’s Point in June. And Zizzo’s relocation could result in another business finding a home in the southside neighborhood.
The marketing firm’s founder Anne Zizzo is redeveloping a two-story, 12,200-square-foot building to house her namesake firm and its 24 employees.
She’s retained RINKA to lead the overhaul of the building at 131-141 S. 1st St. after purchasing the property for $1.25 million in June. It’s a far cry from the firm’s humble beginnings in Zizzo’s basement in 1995.
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More about the Foxconn Facility
- Microsoft Will Pay $50 Million For Mount Pleasant Data Center Site - Evan Casey - Apr 20th, 2023
- Microsoft Data Center Proposed for Foxconn Land - Evan Casey - Mar 29th, 2023
- Foxconn, We Energies Building Solar Farm at Factory Campus - Joe Schulz - Mar 10th, 2023
- Former Foxconn Employee Alleges Company Commits Wage Theft - Evan Casey - Feb 10th, 2023
- Slate of Foxconn Opponents Running for Mount Pleasant Board - Evan Casey - Jan 4th, 2023
- Foxconn Earns $8.6 Million In Wisconsin Tax Credits - Joe Schulz - Dec 23rd, 2022
- Last Home in Foxconn Site Could Be Sold - Evan Casey - Jul 27th, 2022
- UW-Madison Hires Former Foxconn Executive - Rich Kremer - Apr 5th, 2022
- Nelson Calls on Congressional Oversight Committees to Pursue Information on Botched Foxconn-Oshkosh Defense Postal Deal - Tom Nelson - Mar 30th, 2022
- Foxconn Rebuffed Oshkosh Defense Bid to Build Mail Trucks? - Rich Kremer - Mar 28th, 2022
Read more about Foxconn Facility here
Plats and Parcels
Paddy’s Pub Complex Sold, Bar Will Remain For NowJan 16th, 2022 by Jeramey Jannene
Johnson Controls’ Departure Impacts Third WardJan 9th, 2022 by Jeramey Jannene
Douglas Dynamics Expands at Park PlaceJan 2nd, 2022 by Jeramey Jannene
5 thoughts on “Plats and Parcels: Officials Say Wisconsin Finished Second On $20 Billion Intel Campus”
Numerous factors are considered when a well-managed corporation like Intel makes a decision about locating a $20 billion investment. They are meticulous in their due diligence. Imagine if there was an entire book recently published by a top academic publisher about one of their prospective sites. Is there a chance they’d miss it?
And what would they find as they read through “Foxconned: Imaginary Jobs, Bulldozed Homes, and the Sacking of Local Government” by Lawrence Tabak?
That Mount Pleasant leadership had been something of a laughingstock in the national podcast, ReplyAll, showing enormous personal and cultural insensitivity. That this same leadership had misled and used deception to acquire land from their own taxpaying constituents. That the people who controlled the land they’d be using had created a large and bitter divide in their community by their mismanagement of the Foxconn deal, and their imprudent spending of $382 million dollars in support of it.
And that’s not counting the Village Project Director, the guy they’d be dealing with on a daily basis, who now says he’s not the Foxconn Project Director, but more like TID 5 Director. TID 5, the plot of land where Intel’s new plant would have been situated for decades to come. This same director who has demonstrated questionable management practices in his billing of Mount Pleasant for $1.23 million, and a preference for crony vendors and consultants, and whose main resume builder was a fraudulent and failed golf course development.
After the public humiliation of losing out to Lordstown in September to build electric vehicles, do you honestly believe the current Mount Pleasant leadership team could attract any larger venture, one that wouldn’t perform a minimum amount of research into a community to place a multi-billion dollar investment? Can you imagine trying to recruit a highly-paid, specialized workforce to relocate to a community with such a long public record of dissension and malfeasance?
For Intel it was an easy call. “Ohio, here we come!”
While the jobs and development would have been welcome, it might have been better that Intel went elsewhere. Chip fabs are notoriously polluting, especially of water. The Foxconn deal included controversial diversion of Lake Michigan water, and neither they nor Intel can be entirely trsuted not to significantly destroy water quality.
So I don’t have the exact figure but I feel pretty confident that Intel has spent over $150B on share buybacks over the past 20 years. Before the Reagan Regime share buybacks were illegal and considered a form of stock manipulation. (The rule was changed in 1982). Won’t even get into how taxes for high income earners and corporations have been slashed. (Top earner tax bracket was 70 percent in 1981, 40 percent for corporations). Now Intel comes cup in hand begging for even more taxpayer money as it let its manufacturing operations deteriorate. WTF.
What we need are politicians, like Tom Nelson, who are campaigning to end corporate welfare as we know it.
What we don’t need are billionaire Golman Sachs bankers, like Alex Lasry, who threatened to move the Milwaukee Bucks to another State if Wisconsin taxpayers refused to give him nearly $1 billion dollars in cash, land, and tax breaks for a new basketball arena.
Yup, and the Pack finished second against the 49ers this weekend.