California-based company purchases industrial park parcel for $1.05M

By Brandon Anderegg

Feb. 21, 2019

MUKWONAGO — A California-based company purchased a swath of land from Mukwonago’s 115-acre industrial park for $1,050,000 following a closed session discussion on the matter Wednesday night.

Malcolm, headquartered in California, is a specialty foundation contractor with several locations across the nation, including an office in Wales, Wisconsin, according to the company website.

The deal between the village and Malcolm for the 9.6 acre parcel is a “cash only deal,” meaning the sale of the property is not through the village’s Tax Incremental Financing District on which the industrial park is located, said John Weidl, village administrator and economic development director.

“It’s straight cash for land,” Weidl said. “There is no TIF incentive.”

Weidl anticipates that Malcolm will construct a 15,000- to 20,000- square-foot building where the company will house large drilling equipment and more. This marks the fourth business to inhabit the business park since the park was proposed just under a year ago.

The Village Board also met with Anderson Commercial Group Vice President Ray Goodden, who had expressed interest in purchasing land from the industrial park. However, Weidl said no action was taken on the matter.

When Mukwonago purchased the 115-acre industrial park for $3.28 million, a tax incremental financing district was created to fund the project. Tax incremental financing allows municipalities to funnel tax money into improvements within a geographic district.

After a TIF district is created, a portion of the property taxes generated on new developments within the district, called “increment,” goes into a pot that can be used to pay for improvements, like environmental cleanups, road construction, demolition projects and in some cases, financing and incentives to attract or fund private development.