Arrowhead growth pitch draws council interest; Livesay seeks TIF support

Arrowhead Pharmaceuticals representatives told the council they need room to expand R&D operations and estimate roughly 150 new research scientist positions if the company grows in Verona instead of out of state. A company representative said the Madison site “is not big enough” and described a plan to lease a new building that would be developed and owned by the Livesay Company.

Dave Bormet, vice president with Arrowhead, told the council the company prefers a campus approach in Verona and would keep existing Wisconsin headcount while adding 150–175 positions over time. John Livesay, president of the developer (Livesay Company), said assembling the capital and structuring a feasible deal is difficult and urged the council to consider supporting the project so the local economy can capture the jobs and tax base benefits.

Council members broadly welcomed the concept but repeatedly said they needed a financial "but-for" analysis before agreeing on any public assistance. City staff identified a developer request for a municipal revenue obligation (MRO) and said the figure being discussed was about $15 million; staff recommended engaging Ehlers to test whether that assistance is legally and financially necessary. Attorney Kleinmeyer said the usual process is to run the but-for test, then negotiate terms and public benefits if the test shows a gap.

“It's really just a term of our agreement… PAYGO agreements,” Kleinmeyer said when explaining how an MRO functions and how it is tied to project completion. Several alderpersons said they supported further analysis to determine whether the project qualifies under TIF rules before discussing dollar amounts or entering closed-session negotiations.

Next steps: staff will coordinate the financial analysis and return with findings; council did not vote to commit funds at the meeting.