Cost of U.S. Venture's move to downtown Appleton rises to $75 million to $80 million

APPLETON — U.S. Venture disclosed Friday that it will spend $75 million to $80 million to acquire and renovate the iconic 222 Building on West College Avenue into its new corporate headquarters.

The company previously estimated the project would cost $56 million.

The higher investment is necessary to create the amenities U.S. Venture desires for its employees and to work within the confines of the 10-story building. Company officials are working toward listing the building on the national and state registers of historic places.

The renovation will begin in late summer and take as long as 18 months to complete. The building initially will welcome 600 U.S. Venture employees and will have the capacity to accommodate 1,000 employees. The company's headquarters in Kimberly eventually will be sold.

U.S. Venture CEO Eric Kessenich said he is excited to move to downtown Appleton.

"The primary driver for us is the desire to make a positive impact in the community," Kessenich said. "We know, definitively, that our presence here will help do that. It's good for local businesses. It helps create an energy and kind of a vibe in the community. It helps promote other development."

'A pinnacle moment for downtown Appleton'

Jennifer Stephany, executive director of Appleton Downtown Inc., credited U.S. Venture for making "a transformative investment" in the heart of downtown.

"The businesses, the retailers, the coffee shops, the restaurants — they'll all feel the impact of this investment and this development," she said.

With the new housing units downtown, Stephany said she is hopeful Appleton's live-work-play environment will attract top talent to U.S. Venture and other companies in the Fox Cities.

"We know this development project will not just stop here and that the impacts will be felt for years to come," Stephany said. "This is a pinnacle moment for downtown Appleton."

Reuse of building reflects U.S. Venture's commitment to sustainability

U.S. Venture had planned to build a new headquarters on the bluff south of Lawrence Street before selecting the 222 Building. It already occupies the fifth, sixth and eighth floors.

Kessenich said an adaptive reuse of a building adds complexity and cost to the project but is "by far and away the best thing for the environment."

The renovation will focus on energy efficiency and will use recycled and reclaimed materials. It will involve structural improvements, cosmetic updates, new heating and cooling systems, and new plumbing.

U.S. Venture will occupy all 10 floors, after tenants, including The Post-Crescent, move out. U.S. Venture said it will work to minimize the renovation's effect on tenants.

"We're working with all the existing tenants to come up with a plan that's fair and appropriate," Kessenich said. "We are and want to continue to be good stewards of the community."

Kessenich said U.S. Venture will work with city and community leaders and developers to determine the future use of the bluff site.

What is the city's role in the project?

Appleton and U.S. Venture officials on Friday signed a development agreement for the project. The Common Council approved the deal in March.

The city will pay as much as $2.1 million, plus interest, to U.S. Venture as a financial incentive to bring the project to fruition. The money will be funded through Tax Incremental Financing District No. 11 and will be paid only after sufficient property taxes have been collected on the new development, limiting the city's risk.

U.S. Venture will guarantee an assessed property value of $29.3 million. That's a gain of $16.4 million over the property's current value of $12.9 million.

"We see this as a wise investment of community resources and a great application of tax increment financing to secure this development for our downtown," Mayor Jake Woodford said.

In addition to the financial incentive, the city will reserve 650 parking permits in its Green Ramp for purchase by U.S. Venture at the lowest available rate. That will generate revenue for the Appleton Parking Utility.

In return, U.S. Venture will redevelop five of its seven parking lots in the College North neighborhood within five years. Otherwise, it will convey the lots to the city for redevelopment.

Founded in 1951, U.S. Venture distributes renewable and traditional energy products, lubricants, tires and undercar parts and manages energy and information in the global movement of goods. It has more than 4,200 employees in 48 states.

Contact Duke Behnke at 920-993-7176 or dbehnke@gannett.com. Follow him on Twitter at @DukeBehnke.

This article originally appeared on Appleton Post-Crescent: U.S. Venture's move to Appleton will cost $75 million to $80 million