Finance committee approves Jobs TIF loan to support Real Fusion research site at former Oscar Meyer plant

The Madison Finance Committee voted unanimously June 1 to move forward with a jobs‑focused tax increment financing (Jobs TIFF) loan and an amendment to TID 54 to support a proposed Real Fusion research and development campus at the former Oscar Meyer site.

Dominic Bendle, vice president of technical development for Real Fusion, told the committee the company's Forge phase will house a commercial‑scale prototype research device that will not generate electricity or use fusion fuel on site and that the work focuses on proving conditions needed for a future power plant. Bendle said Real Fusion expects to invest tens of millions in building improvements and hundreds of millions on specialized equipment as it scales toward later phases.

City economic development staff explained the Jobs TIFF program and the proposed deal. Economic Development Director Matt Mccloeski said Jobs TIFF awards are limited to up to 40% of the net present value of increment generated by the development and are structured as post‑performance payments tied to milestones. For this project staff described a proposed $2.8 million package payable in up to six installments, delivered only after Real Fusion demonstrates increment and job creation milestones (first payment after roughly $17.5 million of value; subsequent payments tied to additional value and 50, then up to 200 jobs). The loan requires an increment guarantee, a mortgage recorded against the property, and a corporate guarantee from Real Fusion.

Staff presented anticipated scale and public benefits: reuse of a long‑vacant property, retention of at least 43 jobs, creation of a minimum of 157 new full‑time jobs, redevelopment activity expected to increase taxable value by more than $50 million, and building investment of over $60 million (not including company equipment). The city will audit payroll annually and requires the company to retain created jobs for five years after the final payment.

Director Mccloeski and real estate manager Dan Ralphs acknowledged technical and infrastructure issues: the experiments will use significant electricity and Real Fusion is in active discussions with Madison Gas & Electric about grid upgrades and ensuring pulses for experiments do not affect distribution or ratepayers; staff said any necessary upgrades would be paid by the company. Staff said water use, noise and odors are expected to be minimal.

Alders raised questions about recruitment plans, the company’s ability to meet guarantee provisions, and whether electricity upgrade costs could be shifted to neighbors or ratepayers. Staff said payments are phased and post‑performance, the city holds a mortgage and corporate guarantee, and that any rate issues fall under MG&E and the Public Service Commission rather than the city. Alder Matthews reiterated that tritium (fusion fuel) will not be brought to the site for this phase, which staff and the registrant confirmed.

After discussion the committee recorded a unanimous vote to adopt the staff recommendation and proceed with the Jobs TIFF loan agreement and TID amendment steps required to implement the deal, subject to final terms and joint review board approval.

The item advances a city effort to attract a nascent private fusion R&D cluster while using a performance‑based funding structure to limit near‑term risk to the city.