Shunned by the City of Mequon, large-scale retail developments are finding new homes farther north in Grafton and Saukville. Milwaukee-based Marcus Corp. plans to build a 10- to 12-screen movie theater complex southwest of the Interstate 43 and Highway 33 interchange in Saukville. The complex could eventually be expanded to 20 screens, said Brian Biernat, community development director for the village.
Retail development is picking up along Highway 33 between the village’s downtown and Highway LL, east of I-43, Biernat said.
Those developments include a Pick’n Save grocery store, which opened in January on Highway 33; a Walgreens opening soon across the highway; and a combination KFC/Long John Silver, which has been approved for an outlot near Walgreens.
To the west, a 20,000-square-foot multi-tenant building is under construction at 620 E. Green Bay Ave. Tenants in the building, called Conservancy Court, will include Quizno’s, Barthel TV Audio and Video, Northern Lights Tan Spa, PC Homecare and Allied Chiropractic.
Saukville’s population has grown from 3,700 in 1990 to about 4,300 today, Biernat said.
"I think now we’re seeing (retail) developers pulling the trigger because we do have enough roofs," he said. "We do have enough activity, and the traffic counts are there now."
Grafton also is seeing significant retail development along I-43.
A Charcoal Grill restaurant and an 8,000 square-foot multi-tenant retail building, which will include a Cost Cutters, are under construction on Highway 60, west of I-43.
On a 39-acre property south of the Home Depot at I-43 and Highway 60, a developer plans to build 125,000 square feet of retail space in several buildings, including a 52,000-square-foot building, and an 86-room hotel.
The hotel will probably be a Hampton Inn & Suites, said Mike Rambousek, director of planning and development for the Village of Grafton.
Grafton is also receiving retail development proposals for other parts of the village, Rambousek said, including downtown and the village’s south commercial district.
For years, the City of Mequon has rejected proposals for big-box retail development. That appears to be pushing those retailers north to Grafton and Saukville, said Mequon community development director Brad Steinke.
Mequon has kept the big box stores out to protect local retailers in Thiensville, Steinke said.
"We say, ‘Thanks, but no thanks (to big box retailers),’ and we almost send them north," Steinke said.
Mequon and Thiensville officials are working together to create a "town center" downtown area. Mequon is preparing a request for proposal for residential development on city-owned property in the town center area. City officials also are working on a plan for a tax incremental financing district there.
Mequon recently approved plans for two banks, an Associated Bank and an Equitable Bank. Both will be built on Port Washington Road. In addition, about 50,000 square feet of new office space has been added in Mequon in several buildings in the Port Washington Road corridor.
A two-year moratorium on annexations by the Village of Fredonia ended last year. Fredonia officials are now examining plans for a 230-acre annexation for a residential and commercial development proposed by JBJ Construction of Germantown.
"People will have easy access to Milwaukee, definitely with (Highway) 57 being four lanes now," said JoAnn Wagner, Fredonia village clerk and treasurer.
The first new building in historic downtown Cedarburg in 25 years is nearing completion at the northwest corner of Western Road and Washington Avenue. The developer, Greg Zimmerschied of Cornerstone LLC, is constructing a 2,700-square-foot building with 1,350 square feet of retail space on the first floor and an apartment on the second floor. The exterior of the building is complete, and Zimmerschied is seeking a retail tenant.
One block to the north, at the corner of Mill Street and Washington Avenue, Zimmerschied plans to build a two-story building with 5,500 square feet of retail space on the first floor and two apartments on the second floor. If a retail tenant is secured, construction could begin this spring, Zimmerschied said.

Feb. 6, 2004 Small Business Times, Milwaukee

With capacity outpacing absorption and interest rates remaining low, southeastern Wisconsin’s commercial real estate scene will continue to be a buyer’s market in 2004.
The fundamental softness in demand for the region’s office, industrial and retail property markets stems from the fact that vacant space continues to exceed the demand for that space after a three-year economic recession.
In many respects, the commercial real estate development market is even more of a lagging economic factor than employment, according to Mark Eppli, Marquette University professor and Robert B. Bell Sr. chair in real estate.
Before companies lease or buy and develop real estate, they must see expanding revenues and be confident that the economy will continue to grow.
Companies won’t see those revenues expand until consumer spending increases. Consumer spending won’t increase until employment and wages rise. And employment and wages don’t rise until businesses see increased demand for their products and a premium is placed on qualified employees.
And so it goes.
"I think what you’re going to see is there are hopeful signs, but it’s going to take at least until mid-year for those signs to turn into new contracts and new space absorbed," Eppli said.
"Industrial’s going to take a while to get back on track. Business productivity is still hovering around 75%, and we’ve still got equipment sitting idle," Eppli said. "It will take a while, probably into the third quarter, before we get some real absorption."
"The likelihood of a recovery in the real estate market is linked to the stabilization and growth of the national economy," reported Grubb & Ellis
Boerke Co. in its 2004 Commercial Real Estate Forecast for the Great Lakes States. "As the nation grows, so too will Milwaukee."
The Reis Reports Inc., a New York-based company that monitors commercial real estate trends in 80 metropolitan markets throughout the nation, is not exactly bullish on Milwaukee.
"The Milwaukee economy is hanging by a thread," the company reported, citing continued job layoffs in the manufacturing sector.
"Regional economic indicators provide little reason for optimism. Local manufacturers will continue to lay off workers in this highly unionized, high-cost market in favor of cheaper labor overseas," Reis reported. "This metro will need a national recovery to pull it out of its current economic doldrums, and longer-term it has to diversify."
However, local business executives are far more optimistic about southeastern Wisconsin’s economy. In the most recent Metropolitan Milwaukee Association of Commerce outlook survey, about 75% of employers foresee increases in revenue and profits in 2004, and nearly half plan to expand their workforce.
No doubt, the southeastern Wisconsin commercial real estate market has its hot spots:
— Progress continues to be made in development plans for the $1 billion Pabst Farms project in Oconomowoc and the $300 million Pabst City project in Milwaukee. Both are grand projects that will take years to complete.
— Downtown Milwaukee and the Historic Third Ward are bustling with new upscale condominium developments. Those projects, which include two large condominium towers, will bring a growing need of retail to meet the residential demand.
— Harley-Davidson Inc. is adding to the momentum of redevelopment in Milwaukee’s Menomonee River Valley by deciding to build its museum, office and retail complex near South Sixth and Canal streets.
— New industrial development is booming along Interstate 94 from Oak Creek down to the Illinois border.
— Menomonee Falls is targeted for $150 million in new development at its Heritage Reserve complex in Menomonee Falls. Plans call for a hotel or conference center, a medical service building, upscale retail, a bank, a senior housing complex, several more office buildings and upscale apartments and condominiums.
— The health care industry continues to expand throughout the region with several medical buildings being constructed.

In general terms, the southeastern Wisconsin market seems to be gobbling up new commercial real estate space, but the reuse of existing space continues to be a real challenge, Eppli said.
"Both industrial and office, we’re going to have a problem with reusing our existing buildings," Eppli said. "We’re leasing up our new buildings."
Beyond 2004, Eppli is concerned that the nation’s trade deficit and federal budget deficit are soaring. If that continues, it won’t be long before interest rates and inflation will become factors that could stymie economic growth and the accompanying commercial real estate development, Eppli said.
"The big risk is the double-barrel risk of the trade and federal deficits. We’ve really got to get this back in order again. We can’t continue to do this," Eppli said. "In the long run, if we stay at this path, it’s so clearly and wildly unsustainable. That’s a looming challenge. Politics aside, Republican or Democrat, whatever …. I’m not trying to pull a political card here. But we can’t continue to do this."

Feb. 6, 2004 Small Business Times, Milwaukee

Ferguson Enterprises Inc., a nationwide wholesale plumbing supply distributor, will move from its Milwaukee location on South 108th Street to a larger West Allis plant in May.
The new location will enable Ferguson to expand its product lines and introduce a Kohler Premier Showroom.
Ferguson has outgrown its current 21,000 square-foot facility, according to Michael Draper, the company’s general manager for southeastern Wisconsin.
Ferguson will have nearly three times more room once settled in at the 55,000-square-foot plant at 2030 S. 116th St.
"The new facility will allow for growth in our inventory breadth," Draper said. "The current facility is smaller and older than the one we are moving to, and we are running out of room, as our company continues to add employees and products."
Draper said Ferguson contacted Trent Poole, a broker for The Polacheck Co., Milwaukee, in search of a larger location and was directed toward Paul Votto, president of Burke Properties, Milwaukee, a residential and commercial development company.
"We work directly with tenants looking to further meet their special needs," Votto said. "Ferguson laid out their requirements, and we felt the square footage and the height of the interior of the building were a good fit for storing supplies and material."
Votto purchased the property under Burke West Allis LLC and contracted a lease agreement with Ferguson. Poole and Rand Wolf were brokers for Polacheck representing the buyer, and Jim Young from James T. Barry Co. brokered the sale for the seller, Forman Realty.
Ferguson is based in Newport News, Va., and currently has 12 Wisconsin locations. The company has resided on West Boden Street in Milwaukee since 1999 and opened its second Milwaukee location on 108th street in 2001, when it purchased Westburne Supply Inc., according to Draper.
Ferguson plans to move to West Allis once two renovation projects are completed.
"Our efficiencies will improve with the larger building," Draper said. "Corporate is doing warehouse realignment. We will have separate receiving and shipping stages in the warehouse that will help keep us organized, and more space overall will help."
The extra space in the new facility will provide enough room for a 3,000-square-foot showroom displaying the various mechanical, industrial, plumbing and building products Ferguson carries.
The Kohler Premier Showroom will be the only one of its kind in the Milwaukee area and will fill 1,500 square-feet with products geared toward high-end construction and remodeling, according to Draper.
"The Premier is one step above a regular Kohler showroom," said Draper. "There are more working displays, televisions showing videos of products in use, hardwood floors, artwork. It is just a nicer, different way to display products."
Ferguson mainly distributes products for plumbing and mechanical trades, residential construction, schools, apartment buildings, hotels and industrial plants, according to Draper.
The 50-year-old business is owned by Wolseley plc., a distribution company based in England, and employs 12,000 people nationwide. Ferguson will continue to add products, locations and employees as part of the corporate growth goal to double the company in size nationally every five years.
Combined, the two Milwaukee-area locations combined have hired 12 new employees over the last five months and plan to add more to the staff of 47 in the future.
"We are planning to continue growth and will be adding a third location in the next two years," Draper said. "More facilities equals more square footage per product."

Feb. 6, 2004 Small Business Times, Milwaukee

With a glut of abandoned old factory space remaining for sale or lease in southeastern Wisconsin, the 2004 industrial real estate market can only get better.
At least, that’s the viewpoint of James T. Barry III, president of the James T. Barry Co.
"The economic recovery will continue, and the industrial real estate business cycle will enter its recovery stage, which means that the vacancy rate will drop, net absorption will increase and new construction will increase, including speculative construction," Barry stated in his Fourth Quarter 2003 Survey, which will soon be published by Colliers.
"The fourth quarter of 2003 proved to be a turning point for the industrial real estate market in Milwaukee. Vacancy rates stabilized as new space began to be absorbed again. More importantly, the level of demand for space increased in the fourth quarter, with more showings, letters of intent and tangible offers. While the basis for this observation is somewhat anecdotal, solid results should be observable in the first quarter of 2004," Barry stated.
Grubb & Ellis/Boerke Co. agreed that the local industrial real estate market will improve in 2004.
"Companies who were on the fence early in 2003 about their expansion plans are just now reacting to current below-market pricing (combined with continuing low interest rates). Activity should pick up in 2004. Heightened demand brought on by improving economic conditions will most likely be met by an increase in net absorption numbers, higher lease rates and higher purchase prices," the company stated in its new 2004 Real Estate Forecast for the Great Lakes States.
Among Barry’s observations for the local industrial real estate market:

— It is still a "user-driven" market for properties less than 50,000 square feet.
— Large industrial buildings of 100,000 square feet or more are still "sitting" on the market, including the former J.C. Penney warehouse, the Kohl’s bakery, the Olson warehouse, the Rubin warehouse and the former Wisconsin Color Press, West Bend Co., Taylor Electric, Kasch Toy, Velvac, Schreiber, Metso, Norlite and Regal Ware plants.
— Multi-story industrial buildings, such as the former Pabst Brewing Co. brewery and the Scott Paper Co. plant, continue to be converted to other uses. The Pabst site is being transformed into the Pabst City project of retail, entertainment, office and housing development. The Scott Paper site will be the new home of Columbia St. Mary’s Hospital’s headquarters and offices.
— New development, some of it speculative, is starting to occur. Roundy’s Inc., for example, plans to move its distribution center from Wauwatosa to the massive Pabst Farms project in Oconomowoc.
— Large national investors, such as CenterPoint Properties Trust, First Industrial Realty Trust Inc. and Liberty Property Trust, continue to show interest in the Milwaukee market.
— The region has a shortage of well-located, developable industrial land. "Most new developments are taking place on the periphery of the market. This puts upward pressure on the price of ‘in-fill’ land sites and the price per square foot of existing buildings and will continue to do so," Barry said.

Barry predicts the market’s Class A industrial space will fill up at a faster pace in 2004.
"There will be upward pressure on lease rates and prices per square foot across the board for industrial real estate, with one very important exception: industrial buildings over 100,000 square feet will continue to suffer," Barry said.
The hottest industrial real estate submarkets in the region will be along the Highway 45 and 124th Street corridors and the intersection of highways 164 and J in Waukesha County, in addition to Oak Creek and Milwaukee’s Menomonee River Valley, Barry said.

Feb. 6, 2004 Small Business Times, Milwaukee

Roland Machinery Co. will head south to Racine County once construction is complete on its new 35,000 square-foot headquarters this year.
The $3 million facility will be the headquarters for Roland’s new Wisconsin and Upper Peninsula division and will face Interstate 94, located in Yorkville at 2916 N. Sylvania Ave.
The building will provide more office space, a demonstration area and a larger service and distribution center than the company’s current facility at 11715 W. Silver Spring Rd., Milwaukee.
The new plant will replicate the layout of Roland’s Bridgeton, Mo., facility.
Project manager Jeff Grahl of Ott Development said the new Roland plant should be open for business in June or July. Construction began in December.
Roland Machinery, an equipment and machine distributor based in Springfield, Ill., expanded in the Wisconsin market in June 2003 when it purchased Bark River Culvert & Equipment, Green Bay. Roland simultaneously acquired Bark River’s six Midwest facilities and became one of the largest Komatsu distributors in the nation. With Roland’s growth and dominance in eastern Missouri, northwestern Indiana and Illinois, company president Ray Roland said moving into Wisconsin and Escanaba, Mich., seemed to be a logical extension.
According to Gary Roberts, general manager of the new Wisconsin and U.P. division, the company also considers the buyout a return to Wisconsin.
Roland had owned a majority of Aring Equipment Co., with locations in Milwaukee, Madison, Green Bay and Eau Claire, according to Roberts.
"Roland decided to sell its portion in 1998, and so we lost our presence in Wisconsin," said Roberts. "When we had the chance to acquire Bark River, we took it."
Roland now occupies Bark River facilities under the Roland name in Milwaukee, Green Bay, Eau Claire, Schofield and DeForest. A sixth facility is in Escanaba, Mich.
Roland wants to take advantage of the promise of the Chicago-Milwaukee corridor and develop business within what Roberts calls "the golden triangle" of Wisconsin — the Milwaukee, Madison and Green Bay corners of the state, including the Fox River Valley.
"Given the geographic proximity of the two major cities of Chicago and Milwaukee — and the fact that many contractors migrate across state lines to work — this makes a lot of sense," Roland said. "We’ll now be able to provide those traveling customers with much better support, both in terms of product and service."
Roland Properties purchased 72 acres from the Enterprising Group in December. Jim Young of James T. Barry Co, who represented Roland, and Tony Bareta of NAI/MLG Commercial, Brookfield, who represented Enterprising Group, brokered the sale.
Roberts said Roland will develop 15 acres and has put the remaining acreage up for sale in 7-acre, 10-acre and 40-acre parcels.
Roberts is taking the 17 employees at the Silver Spring location to the new headquarters. He plans to hire 10 more after the facility opens and double his staff within five years.
Roberts is originally from southern Kentucky and has been working with Roland in Springfield for five years. He hopes to improve the service within the company as it develops within Wisconsin, bringing convenience to customers in areas far removed from Roland facility locations. One idea Roberts will carry out is to place a series of drop boxes for customer convenience. Roberts said this is not a new idea, but it is an important option for customers.
"The drop boxes will be in locations either complementary of customers or rented from places, like a parts warehouse or an auto parts store. Something where it would be secure," said Roberts. "We will store parts in the drop box, and customers would have a key. For instance if a customer needs a part by next week, we would deliver it to the drop box right away and they could pick it up at their convenience."
Once the facility in Yorkville is up and running, Roberts said, Roland will begin making plans for new facilities in Green Bay, Schofield and Escanaba.
"We have St. Louis, Chicago, and now we have Milwaukee. You can’t get better than those three cities, and we are looking forward to increasing our sales and market share in the metro Milwaukee area."

Feb. 6, 2004 Small Business Times, Milwaukee

Mammoth Springs — the historic site of the Kewpie-brand canning operation in Sussex – is being redeveloped into retail shops, offices and residential units as a part multi-million dollar construction plan by Bielinski Development of Waukesha.
The mixed-use development comprises approximately nine acres. The acreage originally included several abandoned buildings, a quarry lake and the former Bug Line railroad track, which has been retired for many years.
Bielinski Development received a $400,000 brownfields redevelopment grant from the state. Demolition and asbestos removal has been completed, and the initial building phase is scheduled to begin this summer.
Mammoth Springs Square, an idle site since 1995, will become a fundamental element to the vitality of the Sussex downtown area, said Bob Brownell of Bielinski Development.
The commercial development incorporates roughly 58,000 square feet of office, retail and restaurant space, and the residential area includes 17 units totaling nearly 38,000 square feet.
The development will include lighted pedestrian walkways and green space.
The Mammoth Springs development will incorporate several sites that have shaped the history of Sussex. As canning was once a prominent industry in the village, the Friday Canning Co. headquarters building will be renovated and integrated into the commercial center.
The former Bug Line railroad track will be converted into a bike trail that will link to a larger, regional trail and wind through the residential area and commercial center. A long-time recreational amenity for swimmers, fishermen and picnickers in Sussex, the quarry lake will remain a distinct feature of the development, serving as a natural backdrop to the townhouse condominiums.

Feb. 6, 2004 Small Business Times, Milwaukee

Washington County may once again be one of southeastern Wisconsin hot spots for commercial real estate development, with major projects in West Bend, Jackson, Germantown and Hartford beginning this year.
Downtown West Bend is receiving a facelift with the recent demolition of 11 buildings on the east side of the city, according to Brenda Hicks-Sorensen of the Washington County Economic Development Division.
Meanwhile, Tim Dixon of Riverbend Development is wrapping up details to develop the former West Bend Co. site on the northeast corner of the Milwaukee River and Highway 33, according to Julie Cayo, community development planner for West Bend. Cayo said Dixon is waiting for approval from the West Bend Common Council to convert the 10 buildings of the 900,000 square feet of industrial space into a multi-use development.
Aurora Health Care will begin construction on a new medical clinic this spring at a 60-acre plot adjacent to the interchange of highways 60 and 45 in Jackson, according to Del Beaver, Jackson village administrator.
Beaver said Aurora’s highly visible location should trigger a range of additional developments around the area.
In Germantown, Advanced Healthcare has received approval to build a 16,200-square-foot medical clinic that will be centrally located on Mequon Road and Revere Lane, according to Jason Gallo, village planner for Germantown. Germantown will also soon become the headquarters for Hometown Publications.
"The developments seem to be a nice combination of retail, industrial and residential growth," said Gallo. "The level of activity has seemed to pick up in the last several months, and there are many other projects in the pipeline that could make 2004 a very interesting year."
Werner Wolpert, executive director of the Hartford Area Development Corp., said new manufacturing developments and expansions will increase Hartford’s square footage of manufacturing space from 4.5 million to 4.8 million.
"It is starting to pay off," said Hicks-Sorensen. "Expect to see very positive things from Washington County in the next five to 10 years."

Feb. 6, 2004 Small Business Times, Milwaukee

Sheboygan County is on the tee. When the PGA Championship golf tournament comes to the Whistling Straits Golf Course Aug. 9-15, it will present a once-in-a-lifetime opportunity to showcase the county to more than 300,000 strangers.
Many of those golf fans will be corporate executives.
Dee Olsen, executive director of the Sheboygan County Chamber of Commerce and Convention & Visitors Bureau, hopes to seize the day and show those executives that the Sheboygan area would be the perfect location if they should ever want to expand or relocate their businesses.
"It’s not every day you have 300,000 people come to visit. It’s a huge, huge opportunity," Olsen said. "We’re working with the PGA staff to make sure we’re connecting with those folks."
"It’s just unbelievable. Everybody’s extremely focused on being prepared for it," said Nancy Verstrate, executive director of the Sheboygan Falls Chamber of Commerce & Main Street Program. "It’s going to introduce a lot of people to the area that otherwise wouldn’t be here, and we want them to come back again."
Sheboygan County can use the boost. Several manufacturers in the county have either closed doors or shipped many of their production jobs overseas to cheaper labor, leaving vacant industrial space throughout the county.
Meanwhile, big-box retailers have sucked the life out of several local merchants, according to Paul Gottsacker, president of Gottsacker Commercial Real Estate, Sheboygan.
"I don’t know how much more Sheboygan can handle," Gottsacker said. "I don’t know how much more big-box retail Sheboygan can support."
A huge Target store is slated to open in March at Kohler’s Deer Trace Plaza, which already is home to a Home Depot store, and a Wal-Mart Super Center was recently built along Highway 57 in Plymouth.
Now, commercial real estate sources say, Wal-Mart is shopping around the area to open another Super Center in the county.
"They are just doing some inquiries, as far as what they can get from the municipalities," Verstrate said.
Although some manufacturers have downshifted or evaporated, Sheboygan is home to several new large-scale commercial development projects, including:
— Alliant Energy Corp. plans to construct a $140 million natural gas-fired power plant summer in the Town of Sheboygan Falls. The Madison-based firm hopes the plant will be operational in 2005.
— Blue Harbor Resort, $54 million resort, conference center and indoor water park on the shore of Lake Michigan in Sheboygan, is expected to open in time for the PGA Championship.
— Acuity Insurance Co. is half-way finished with its $45 million expanded headquarters along I-43 in Sheboygan. The company hopes construction will be finished in time to showcase its new complex during the golf tournament.
— Johnsonville Sausage has begun construction on a $34 million plant in the Town of Sheboygan Falls. The 70,000-square-foot cooked sausage plant will employ 120 workers.
— The Acuity Technology Center is being constructed at the University of Wisconsin-Sheboygan campus. The $6.2 million, 29,000-square-foot information technology building is scheduled to be completed by 2008.

Feb. 6, 2004 Small Business Times, Milwaukee

Kenosha County saw an increase in building last year, but mostly in residential development, according to municipal data analyzed by the Kenosha Area Building Alliance (KABA).
Based on building permit data, the total value of new construction permits issued in Kenosha County in 2003 exceeded $229 million, compared with $206 million in 2002.
While the 2003 total was less than that of 2001, "it is clear the market remains strong," said John Bechler of KABA.
The value represented by multi-family housing permits more than doubled from 2002. Single-family housing permits dropped in 2003 from 751 to 745, but the value increased from $119 million to $134 million.
Municipalities in the county issued eight permits for new industrial construction last year, compared with two in 2002 and 10 in 2001.
Commercial building permit numbers went from 60 in 2002 to 39 last year.
However, more commercial development should be on the horizon, says Ray Forgianni of the City of Kenosha.
"We’ve seen a shift in the market," Forgianni said, noting the past year saw a strong single-family housing market in the area but little major retail action.
"Retail is heating up, with the big-box retailers showing interest," he said. Gander Mountain recently presented plans to the city’s planning committee for a flagship store near the Highway 50 and I-94 intersection. Several Wal-Marts are in the plans, and Lowe’s is working on a site at Southport Plaza at highways 31 and 50 for a home-improvement store.
"Retail will come back. The national retailers are getting ready for the recovery and want to be in place for the next boom," Forgianni says of the big-box retailers.
A focus remains on the downtown and lakefront, where redevelopment continues after the creation of the 69-acre HarborPark residential district on the lake. That development has bolstered the fortunes of downtown businesses and has been a catalyst for activity there, Forgianni says. That activity includes upgrades to four buildings by the Lakeshore Business Improvement District.
Elsewhere, development eyes remain on Pleasant Prairie, where the massive VK Development project continues along Highway 50 on the northwest side of the village. The owners of Ventura Fine Jewelers in the Prairie Ridge Marketplace announced plans to build a 300,000- to 350,000-square-foot retail center in the Prairie Ridge development, with an anchor tenant and smaller retailers.
Pleasant Prairie also saw expansion of the S.C. Johnson & Son distribution facility in the LakeView Corporate Park. The project involves expansion of the two-year-old, 603,600-square-foot building to 891,600 square feet.
CalEast Industrial Investors, a joint venture between the California Public Employees Retirement System, known as CalPERS, and LaSalle Investment Management, bought the SuperValu Midwest Region Distribution Center at the end of the year from Wispark and Towne Realty, which acquired a 75% interest in the building in 2002.
The major development story in the making, however, is the renewed proposal to convert the Dairyland Greyhound Park into a gambling casino operated by the Menomonee Nation of Wisconsin. Officials of the northern Wisconsin tribe say such a casino could generate up to 6,000 jobs and $500 million in annual economic impact, with up to $450 million a year being generated by the casino itself.
The tribe has proposed purchasing the dog track complex just off I-94 at Highway 158 for $40.5 million from its current Alabama owners. It would continue to operate the greyhound park but, along with the casino, add a hotel, an entertainment center, a convention complex, an indoor water park and restaurants.
Sitting in the way of the project, however, is the Wisconsin Supreme Court case challenging the existence of the broad Indian gaming operations in Wisconsin, and the need to have the land placed in trust for the tribes by the U.S. government.
The state Supreme Court is expected to rule by this summer on the legality of the gaming compacts.

Feb. 6, 2004 Small Business Times, Milwaukee