Wispark LLC, the real estate development division of Milwaukee-based Wisconsin Energy Corp., plans to acquire and develop two key sites in Oak Creek: the former Delphi property and the former Peter Cooper property on the lakefront.
As part of Wisconsin Energy’s Oak Creek power plant project, Wispark agreed to invest $20 million in real estate development in Oak Creek. The funds will come from Wisconsin Energy shareholders and Wispark funds, not from We Energies ratepayers, said Wispark president Jerry Franke.
Wispark officials expect to get a “reasonable real estate return” from the Oak Creek projects, he said.
The 85-acre former Delphi property is located southwest of Howell and Drexel avenues. The plant closed in 2008. Delphi filed for chapter 11 bankruptcy protection in 2005 and closed the Oak Creek plant as part of its restructuring.
The property is owned by DPH Holdings, which was formed to dispose of Delphi properties. Wispark is in the process of purchasing the Oak Creek Delphi site from DPH and the sale could close in May or June, Franke said. He declined to disclose the sale price.
Wispark plans to do a mixed use development on the former Delphi site with residential, office and retail components, Franke said. In addition, the city of Oak Creek might relocate its library, City Hall and community center to the site.
The former Delphi site’s location is attractive because it is along Howell Avenue, which is Oak Creek’s main commercial arterial, and Drexel Avenue, which will be getting a freeway interchange as part of the I-94 North-South reconstruction and expansion project, Franke said.
“It’s a very dynamic location that has a lot of opportunity once the real estate market picks up,” he said.
The 80-acre former Peter Cooper Corp. glue plant site along the lakefront is part of a lakefront area that city officials and some community members are working to revitalize. BizTimes Milwaukee did a comprehensive report on the city’s lakefront plans last year.
The lakefront site is attractive, but its location is out of the way from the freeway and other major roads, Franke said.
For now Wispark wants to hear what city residents say their vision is for the lakefront before deciding what to do with the site, Franke said.
“At this point, we’re listening,” he said.
Wispark is in negotiations to purchase the lakefront site from Oak Creek Storage and Handling, which is owned by the estate of Jim Jalovec, who died last year in a helicopter crash while delivering aid to victims of the Haiti earthquake. The deal could close in July, Franke said. He declined to disclose the purchase price for the site.
Both the lakefront site and the Delphi site will require environmental cleanup work. Wispark will conduct extensive environmental assessments as part of its due diligence prior to closing on the properties, Franke said.
Wispark also plans to develop a business park on a vacant 200 acre site southwest of Oakwood Road and Howell Avenue. Wispark purchased the site in 2009, but has not done any work on developing it yet.
