× Expand Rendering by Zimmerman Architectural Studios A rendering of Komatsu's new Harbor District headquarters

Milwaukee’s Harbor District will soon be getting a boost thanks to city officials, who approved $40 million in financing Tuesday for the recently announced Komatsu Mining Corp. headquarters in Milwaukee's inner-harbor. However, approving the financing for the 52-acre site had some opposition in the Common Council.

Komatsu announced plans in September to build a 2.5 million-square-foot South Harbor Campus along East Greenfield Avenue and the inner-harbor of Milwaukee. The campus site also contains a city site located at 401 E. Greenfield Avenue, which is adjacent to UWM’s School of Freshwater Sciences. Komatsu officials said in September that the company plans to use the site to create more than 1,300 jobs. The project is expected to be completed in 2022.

× Expand A city owned lot at 401 E. Greenfield Ave., where Komatsu will place a portion of its new headquarters

Additionally, the city is proposing a $25 million “developer-financed cash grant” for the company if they employ more than 1,300 employees at the site at a future date. This requirement, along with others, was outlined in a contract between the city and the company. Ald. Robert Bauman, the only no vote on the measure, was not happy about the number of jobs Komatsu is planning to create, as he says the space could employ more Milwaukee citizens.

“The issue here is it’s a city parcel,” he said. “We own it. We control it. We can decide who we sell it to. We can set conditions for architecture, for design, for jobs per acre.”

Ald. Bauman mentioned the Harbor District land and water use plan, a 2018 plan that envisioned higher job creation at the site. As is, the site would employ about 11 people per acre in 2023. The land use plan says that “new commercial office developments” should provide 75 full-time jobs per acre. Although the company does plan to create more jobs as time goes on, it’s not clear if they will meet this number.

Other aldermen also agreed that this deal and contract, which was fostered by the Milwaukee Department of City Development, was not the best-case scenario.

“These kinds of proposals are under a lot of scrutiny,” said Ald. Nik Kovac, mentioning the recent Foxconn and Kimberly-Clark deals in Wisconsin. “I think there would've been a lot of ways to push this company that would've… put more bones on the expansion plans or leave room for someone else to expand.”

Ald. Michael Murphy also agreed that the deal could’ve been better for Milwaukee.

“I recognize that we need to keep a company like Komatsu in our city. At the same time, I think the policy of companies are very smart,” said Ald. Murphy, adding that he believes that companies will always try to increase their rate of return. “In the long run, I wonder if this is the best policy.”

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Komatsu is planning on using the site for “state-of-the-art technology, R&D and robotics labs,” as well as a conference center and museum. The city is also investing $15 million for a public riverwalk adjacent to the site.

“This is a win for the city, state, our employees, customers and the community: together we are investing in Milwaukee’s future as a manufacturing stronghold and valued employer,” said John Koetz, President of surface mining at Komatsu Mining Corp., in a September press release.