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Sussex Gives Green Light to Next Step in Corporate Park Process

A $60,000 grant has been approved to start the purchasing process of 120 acres of farmland to be developed into Sussex’s newest corporate park.

Both the Community Development Authority and the Sussex Village Board voted unanimously Tuesday night to begin the process of purchasing 120 acres of farmland on the west end of Sussex, turning it into a new corporate park.

A community development grant totaling $60,000 will be paid to Brookfield developer MLG to begin surveying the land behind and , doing environmental studies and possibly completing the sale of the farmland with Johnson Bank, the current owner of the land.

Sussex officials stress they have the right to stop the process at any time, and the grant money is revenue from a former tax incremental financing district, not tax money from Sussex homeowners.

When filled with businesses, MLG estimates the business park will employ 1,500 people.

However, those details hasn’t stopped some residents from opposing the project altogether. Representatives from MLG have recently backed away from purchasing and developing the land privately, saying if Sussex still wants the new corporate park, the village alone will have to buy the land.

Pete Meissner, the former owner of the farmland, said he doesn’t understand the new deal.

"If this were a great idea, private money would have already done it. They’d be doing it right now."

“As a Sussex resident and taxpayer, I have some serious concerns with Sussex putting money up to purchase the land. We don’t have to that failed horribly," Meissner said, referring to the problems that the village of Menomonee Falls is having with the Radisson Hotel project. "If this were a great idea, private money would have already done it. They’d be doing it right now. If private money says, ‘We’re not going to touch it,’ why is the village going to touch it?”

And Meissner wasn’t the only one with concerns. Half a dozen Sussex and Lisbon residents addressed the board, questioning why they would put themselves at risk by buying the land.

Although the actual cost of the farmland is still under wraps, Village Administrator Jeremy Smith it has become “very typical” for a municipality to buy the land before a developer takes control.

And because the new corporate park would be located within a TIF district, the money will be paid back through corporate tax revenues.

“This is just the first step in the process, and it’s a relatively limited first step toward a multimillion dollar project with protections for the village, and with a benefit that if we move forward, the developer will pay back the $60,000 to the CDA for future projects,” Smith explained.

However, the project does have a sense of urgency both Sussex officials and MLG employees are attempting to meet.

Johnson Bank says Sussex has a competing offer on the land, and there is a Sept. 28 deadline to make an offer on the property. That means there’s limited time to study the land and determine whether a TIF district should be used for the project.

In addition, every September local municipalities reclassify the purpose of land. With the area behind Kohl’s and Shopko still classified as farmland rather than commercial real estate, there are tax incentives to purchasing it now.

"I think it’s safe to say we’ve given this community plenty of opportunity to show we know what we’re doing.”

Purchasing the farm land and improving it with things like streets, sewer and lights would be financed by the village's sixth TIF district. Under TIF district financing, the assessed value of the land is frozen for taxing purposes. As the value increases because of new development, any additional tax dollars generated from that increase go toward paying off the initial investment. 

Before the Village Board voted, MLG Chairmain Michael Moody outlined his long history with Sussex, saying he’s worked with the last five village presidents. He said southeastern Wisconsin, especially in Waukesha County, is short on industrial land, and with , business owners are finally going to be ready to expand.

“I think is going to loosen businesses,” Moody said. “Companies that need to buy a site – they needed it two years ago, meaning they’re looking for something to be ready tomorrow… I think it’s safe to say we’ve given this community plenty of opportunity to show we know what we’re doing.”

Moody and his team at MLG have developed numerous other areas in Sussex, including the and Eagle’s Ridge subdivisions, and the current corporate park on the corner of Hwy 164 and Lisbon Road. Village President Greg Goetz says, based on their track record, he has faith this will succeed.

“MLG has been involved with the village for many years, and they have the connections, the resources, the know-how to make this successful,” Goetz said. “They’re in the market, they know the trends, and they know how to do it. I have all the confidence in the world that they can do this.”

The Community Development Authority will discuss the next steps in surveying the land, including the potential risks Sussex might face if it purchased the land, at its June 21 meeting.

Pete June 13, 2012 at 05:12 PM
If MLG is so great at development, why are so many of the buildings in the Sussex Corporate Park empty. Where is the demand going to come from to build and occupy the space. Look at the commercial listings, Waukesha County has empty buildings everywhere. Is $60,000 preventing MLG from buying that parcel of land. Sounds like a sucker deal! Doesnt the village own some empty parcels of land on Main Street that was supposed to revitalize downtown? Hey village board get out of the real estate business. This smell of a "good old boy" type of deal.
Me in the Falls June 13, 2012 at 05:43 PM
"Johnson Bank says there is a competing offer on the land". Why is the village stepping in here?
Luke June 14, 2012 at 04:36 AM
I don't know anything about the location, per se, but industrial parks take a heck of a lot of the burden of the tax load off of residential property tax payers. Just think about all the tax revenue from all that property, and not one address in that park is occupied by anyone with kids at that address. Therefore, there is more money for everything, including schools.
Joseph June 14, 2012 at 11:46 AM
That's what I was wondering when I started reading the article.
Joseph June 14, 2012 at 11:47 AM
I call BS on this as well. If there was another offer, why wouldn't the land be sold already?
Joseph June 14, 2012 at 11:47 AM
Only if the spots get sold.
Joan June 14, 2012 at 01:31 PM
Oh good - more farm land being bought up for commercial purposes. Has anyone of the village board bothered to look at all the empty commercial buildings already is Sussex and the surronding areas? Perhaps the $60,000 grant could be used to make some of the existing properties more attractive to buyers. We don't need to consume more farm land.
RG June 14, 2012 at 02:09 PM
This should officially end any consolodation between the Town of Lisbon and Sussex. The last thing the Town residents want is to help fund an empty industrial park. Not to mention them trying to run sewer lines to the bordering neighborhoods...
Craig June 14, 2012 at 03:07 PM
"and the grant money is revenue from a former tax incremental financing district, not tax money from Sussex homeowners" HELLO! Leftover funds from TIFs belong to the taxpayer, so this IS Sussex residents' money! If another developer is interested in buying and developing the land- then maybe the Board should let them move forward. Why burden the residents with another TIF when there is a risk free way to develop the land? Seems to me this Board needs a lesson in what TIFs are supposed to be used for. I am sure Sussex residents would like the tax dollars from new developments to go towards operating costs now- and not wait 30 years.
Craig June 14, 2012 at 03:10 PM
You have to understand if it becomes a TIF, then none of that money goes toward helping pay your taxes. The tax revenue goes to pay for things like infrastructure, and is not paid off for 20- 30 years.
SM June 14, 2012 at 03:26 PM
Mr Moody stated "I think it’s safe to say we’ve given this community plenty of opportunity to show we know what we’re doing.” Really?!! In the 3 CLOSED DOOR meetings his company held with the village board? Is this where he's taken the opportunity to show residents of our community what they're planning on doing? Without the Sussex Sun and The Sussex Patch the residents of our community would have known nothing about this shady deal, until we woke up one day to see bulldozers taking down the farm buildings and replacing the green farm fields with concrete bulldings!
Arnold Jung June 14, 2012 at 10:17 PM
What a shame that people cannot see the real benefit that a commercial park will have for the community thru new tax dollars and increased revenue to other local businesses. Tifs do not last for 30 years and there will be no kids to burden the schools. From what I understand the property that is in quesiton is not easily developable due to wetlands and high ground water. It seems the village board is working to get the best deal for the land from MLG developers and I cannot remember the last time I read about a major park being developed without taxpayer money or TIFs. This property would not develop without help form the village. From what I understand the village board is not even buying the entire property and of the section they are possibly buying they are going to do the infrastructure in steps to miror the development in the park. The fact of the matter is the other buyer from what I understand is the ex farmer that sold the land 10 years ago and wants to buy it back at pennies on the dollar for him to develop into an industrial park with again assistance from the village. One way or another the village will have to spend tax dollars or TIF to develop this property. It will be a commercial park one way or another just like the rest of the 164 highway will be developed in the near future.
Bill K. June 14, 2012 at 10:25 PM
So the taxpayers of sussex should invest in updating existing buildings that are privatly owned and get no taxpayer return out of that but the taxpayers should not invest in a devolpment that will have taxpayer returns built into the deal. I think I would use the money to explore how to further the business community and not keep throwing money at the small amount of vacant buildings in the village and get nothing in return. Go take a look around the village and you will see the amount of business buildings vacant in the village is very small.
Bill K. June 14, 2012 at 10:38 PM
Nobody wants to consolidate except for the town board. The town residents dont want to fund an empty industrial park? Yea thanks for the empty overgrown weed infested industrial park on the corner of K and 74 town board, its a great look for one of the main roads into sussex. The town residents and the town board don't have a clue what they want at least the sussex board is being proactive not reactive like the town board.
Bill K. June 14, 2012 at 10:51 PM
Arnold I agree that the development would be a great benefit for Sussex. If the Sussex board can get a good deal and have assistance from NAIMLG this could be great deal for the village. After Walkers win last week we should have many more opportunitys for business to locate here and bring jobs and opportunity. From what I read the sussex board is only spending money to look at this and can opt out of the deal by September. As I said before this is good to see the board being proactive to make our community stronger.
harvey June 22, 2012 at 10:36 PM
either we vote on this now or we vote in april
harvey June 22, 2012 at 10:39 PM
arnold the village did not spend any money for the silver spring industrial park and it was still built

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