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Council committee backs authorization to pursue 3282 N. 35th St. as future DPW services site
Summary
The committee recommended authorizing staff to pursue acquisition of 3282 North 35th Street for a municipal services site, approving an offer up to $2,000,000 subject to appraisal, environmental review and tenant negotiations; staff said remodeling and long-term capital needs could push total costs to $30–$40 million.
The committee recommended that the City of Milwaukee pursue the purchase of 3282 North 35th Street to consolidate Department of Public Works operations, sponsors and staff said. The motion to recommend adoption cleared the committee by unanimous consent after questions about appraisal, environmental contingencies and long-term budgeting.
Dave Misky, real estate director in the Department of City Development, told the committee the site was identified for repurposing to meet DPW needs and that the purchase authorization sought is “up to $2,000,000” with several contingencies including appraisal, environmental work, survey and a building assessment. He said the seller deadline and holiday timing were factors in presenting the offer now.
Joe Krusche, Commissioner of Public Works, said the city had set aside $4,000,000 in the 2026 budget toward a new facility and that the existing Canal Street location requires “nearly $2,000,000 in repairs a year.” He said rebuilding a new facility from scratch could exceed $60 million, while acquiring and repurposing the 10.5-acre property would be significantly cheaper though still costly to renovate.
Officials said roughly $9.3 million derived from proceeds related to the Murph recycling facility incident would be repurposed for facilities work; staff cited advice from the city attorney and comptroller that bond and insurance rules limit how those funds may be used and agreed to provide written clarification. Appraisal work is underway and staff said the offer allows the city to walk away if contingencies are not satisfied.
Council members pressed staff to avoid overpaying if environmental remediation or appraisal findings reduce value and to use contingencies to negotiate price; one member asked staff to be prepared to abandon the purchase if further facts made the deal unfavorable. Staff confirmed closing was targeted by April if conditions are met.
The committee recorded no roll-call vote in the transcript; the chair announced the file was recommended for adoption by consent, advancing it to the next step in the council process.
