The long-planned redevelopment of the historic former Kearney & Trecker factory in West Allis is moving forward as developers close on financing and the city prepares to sell the property to them, even though developers have not yet secured tenants for the building.
Chicago-based developer
Baum Revision, which specializes in historic redevelopments, is aiming for a summer or fall construction start on its $17 million renovation of the 42,000-square-foot building into an event venue.
The 1918 factory building at South 67th Street and West National Avenue was used by Kearney & Trecker, a manufacturer of milling machines, until 1975 and has been vacant since.
Baum Revision had received a letter of intent last year from a tenant to operate the space, City of West Allis documents show, but after that tenant backed out, construction plans were put on hold.
Now, Baum Revision is pursuing construction plans without a tenant in place.
That's thanks to a $2 million loan from First-Ring Industrial Redevelopment Enterprise (FIRE), a community development organization that provides gap financing support for development projects throughout Milwaukee, Racine and Kenosha counties.
Approved in January, the loan will cover 50% of the building's operating costs for its first 18 months open in order to provide a cushion if Baum Revision does not find a tenant for the space.
Baum Revision plans to continue to search for a tenant, but if the search proves unsuccessful when the building's construction is complete in late 2025, Baum Revision will operate the space.
With financing now in place from sources including the National Park Service and
PACE Equity, among others, city documents show, the city approved on Tuesday an agreement to sell the city-owned property to Baum Revision for $1.
The city will pay $1.2 million to construct a parking lot for the event venue on an adjacent property.
City officials say the venue could be a site for a winter market, vintage markets, non-profit events or weddings.
"Today, we go to Brookfield to do a conference or have an event, we just don't have the space or capacity for larger events like that in West Allis," said
Shaun Mueller, development project manager for the City of West Allis, at the Tuesday meeting.
Baum Revision is estimating the space will draw more than 50,000 visitors per year and create 44 full time jobs and 185 part time jobs.
City officials said they had the option to tear the building down and replace it with new construction — likely multifamily — but are hoping to instead build off of existing multifamily developments, as well as other retail or entertainment projects.
"(Multifamily) is kind of what we'd see in anywhere U.S.A., and this is something that would make this corridor a destination," said
Patrick Schloss, executive director of economic development for West Allis.
