By Hub City Times staff
MARSHFIELD – One of Marshfield’s newest businesses is already expanding and the city of Marshfield is covering land acquisition costs up front as part of a developer’s agreement.
Quality Tank Solutions (QTS) built a 40 thousand square-foot stainless steel manufacturing plant in the Norwood Industrial Park in 2017 and now the business is already adding on.
QTS is now looking to add another 20 thousand square feet to the west of the existing building.
On Feb 27, Marshfield aldermen signed off on a budget resolution which will pay the developer, Don Nikolai Construction, just over $27K to cover the cost of the additional property needed in the industrial park.
Development Services Director Josh Miller told the Council the added manufacturing space will more than cover the city’s costs through added increments in taxes being paid back to the city by QTS.
“Per the development agreement with Nikolai for the Norwood Industrial Park, the city has agreed to pay $27 thousand an acre for land costs; so, what we would do is, upon completion of the construction project, the city would reimburse the Norwood Industrial Park $27,240 for that 1.362 acres,” said Miller. “This is part of a TIF district so the payment on that project and the additional contract costs for the new addition is about $1 million, so that would actually pay for itself in about two years.”
The city has already invested just over $200 thousand — $120 thousand in cash incentives and $94 thousand in land payments – with a guaranteed minimum assessed value of $1.6 million dollars. Miller says the return on investment is five and one-half years.
During the Feb. 27 meeting, Marshfield aldermen also signed off on a conditional use request by Russel and Elliot Weiler and James Nikolai which allows for the development of an apartment complex north and east of the tennis courts near Marshfield High School.
City Administrator Steve Barg says the plan calls for nine 12-unit buildings for a total of 108 units. It’s a development that Barg says continues to address the need for apartments in the city.
“Four years ago, a study said that we had way too little multifamily housing,” Barg said. “Well, now, there have been hundreds of units built in the last four years. We’re not spending a lot of money on them from the city’s side, although we are extending roads and utilities.
“But, when do we have the market being saturated? I don’t think yet, but maybe we’re beginning to get closer to that point.”
The new apartment complex development will use just over 20 acres located between North Hume Avenue and North Anton Avenue, north of East Emerald Street. Barg says these buildings will consist of two bedroom, two bath units, ranging from just over one thousand to just over 11 thousand square feet.
The development will fill in just over a tenth of an acre of wetlands, as approved by the DNR, but Barg says there is a large area of wetlands to the south which will not be disturbed.
Construction is scheduled to start this summer, and the first buildings to be constructed will be the western most apartment unit closest to the tennis court complex. Barg says the full build out will take two to three years.