Arrowhead expansion pitched for Verona campus; council asks for financial 'but‑for' test before TIF negotiation

Representatives of Arrowhead Pharmaceuticals and the Livesey Company urged the Verona Common Council to consider supporting a proposed research-and-development campus that Arrowhead says could bring roughly 150–175 high‑skilled jobs to the city.

"My name is Bob Tietjen. I'm general counsel at Arrowhead, Pharmaceuticals," said Bob Tietjen, who described a need for expansion and for long‑term leased R&D space so Arrowhead can increase headcount. Dave Bormet, vice president with Arrowhead, said a campus in Verona would allow the company to keep existing staff in Wisconsin and add roughly 150–175 positions that require bachelor's to PhD credentials.

Developer John Livesey said financing and market constraints make the project challenging: "It's a fork in the road," he said, arguing the company and the developer need city support to make the building financially feasible. Livesey said the developer would likely own the building and Arrowhead would lease long term.

Council members expressed general support but repeatedly said more financial analysis is needed before committing public resources. City attorney and staff described the ordinary next step: Ehlers (the city's financial adviser) performs a "but‑for" test to determine whether the project would not proceed without TIF/MRO assistance and to calculate an appropriate payment schedule.

Mayor Luke Diaz opened discussion in public session and asked whether councilors preferred to discuss dollar amounts in open session. Several council members suggested that if the conversation turns to negotiating a specific amount, the council should move to closed session for negotiation. A council member noted the developer's initial request was discussed as being in the neighborhood of $15 million.

Council members asked staff to return with the but‑for analysis and other due diligence before any final action. Staff said that, if the council signals conceptual support tonight, they will proceed with the formal financial review and report back.

The council did not take a vote on a TIF or an MRO at the meeting; instead, members directed staff to pursue the financial analysis and return with findings.

Ending

City staff will coordinate a but‑for financial analysis with Ehlers and return to the council with findings before any formal TIF or municipal revenue obligation negotiation. The council's comments indicate support in principle for pursuing the analysis but no commitment to specific dollar amounts.