Milwaukee committee approves $1 million grant for rail spur serving Komatsu

Rending of Komatsu Mining Corp.'s future headquarters campus in Milwaukee.
Rendering of Komatsu Mining Corp.'s future headquarters campus in Milwaukee.

Last updated on July 20th, 2021 at 08:28 am

Milwaukee’s Public Works Committee has approved a resolution to receive $1 million in state funding to construct a railroad spur that would serve Komatsu Mining Corp.’s facility in the city’s Harbor District.

The railroad spur would connect Komatsu’s new $285 million headquarters and manufacturing facility to existing Union Pacific Railroad and Canadian Pacific Railroad tracks near the intersection of South Water Street and East Washington Street.

Komatsu will use the spur to distribute finished goods and receive raw materials, assistant director of the Milwaukee redevelopment authority David Misky told city officials during a Friday meeting. The $2.4 million project will be completed by fall, according to the Wisconsin Department of Transportation.

Komatsu has agreed to cover any additional cost not covered by the grant, according to the Milwaukee Department of City Development. In exchange for railroad spur use, Komatsu has agreed to retain 697 jobs for at least seven years, according to a facilities-use agreement between Komatsu and the city.

The grant is through Wisconsin’s Transportation Economic Assistance program, which provides funding for economic development projects throughout the state.

Friday’s approval authorizes city officials to enact the TEA agreement with the state and the facilities-use agreement with Komatsu. The resolution approved by the Public Works Committee will be considered in an upcoming Common Council meeting.

“We’re excited to see the continued progress and continuing working with the rail companies, city and state for this important piece of infrastructure for our new campus, which is on track for initial office occupancy this fall, as planned,” a Komatsu spokesperson said in a statement.

Komatsu began construction on its approximately 53-acre campus last year with plans for project completion in 2022. The facility will include 170,000 square feet of office space, a 20,000-square-foot museum and training building and 410,000 square feet of manufacturing space.

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