Once Milwaukee Tool completes a planned multi-building expansion at its Menomonee Falls campus, approximately 2,000 people could be working at the site, according to new documents submitted to the Menomonee Falls Village Board.
During a meeting this evening, the village board will consider a resolution to amend an existing tax increment financing district agreement that was put in place when Milwaukee Tool acquired the former Strong Funds office building in 2024.
Documents related to that resolution show Milwaukee Tool’s expansion project is expected to create $205.8 million in value increment by Jan. 1, 2038. The city would provide $26.2 million in TIF over 20 years support the company’s campus development.
The manufacturer plans to build four new facilities which would be built northwest of three other existing Milwaukee Tool buildings in Menomonee Falls. Those are located at 800 Flint Drive, 100 Heritage Reserve and N74 W12528 Leatherwood Court.
The area highlighted in red shows where Milwaukee Tool hopes to construct three new buildings at its Menomonee Falls campus. Map submitted to the DNR by Milwaukee Tool.
Milwaukee Tool purchased the 100 Heritage Reserve Menomonee Falls building, which is the former Strong Funds office building, in late 2024 for $6.7 million. Last year, it announced plans to invest $42 million into the facility.
The 164,000-square-foot Heritage Reserve building is Milwaukee Tool’s fourth Menomonee Falls facility, and its third located near the northern end of Flint Drive. The company owns a 211,000-square-foot building at N74 W12528 Leatherwood Court and a 53,000-square-foot building at W127 N7564 Flint Drive.
The company also occupies 388,000 square feet at N58 W15350 Shawn Circle.
Eventually, the company plans to create a corporate campus around the current northern end of Flint Drive in Menomonee Falls. Construction of the corporate campus will involve remodeling the 100 Heritage Reserve building into an electric lab and research and development facility; construction of four new buildings totaling 750,000 square feet by 2038; and adding a private driveway connecting the campus to Fond du Lac Avenue.
“The figures referenced in the TID documents reflect planning assumptions and statutory projections used to evaluate the district over time,” said a Milwaukee Tool spokesperson. “As with most long-range planning tools, actual development will continue to be phased and driven by business needs, permitting, and market conditions. We are continuing to invest in and grow our Menomonee Falls campus, and the agreement provides flexibility to support that growth over the long term. Regarding the 2,000-employee figure, that is not a minimum requirement. It is a projected capacity scenario included for planning purposes for added infrastructure to handle traffic in the business park and could ultimately be higher or lower depending on how the campus evolves.”
The Menomonee Falls Village Board will also consider further financial incentives for Milwaukee Tool this evening.
When Milwaukee Tool first acquired 71 acres of land in Menomonee Falls in 2019, village officials approved a development agreement that stipulated the village would return to the company 70% of tax increment generated by the project annually.
The amendment to the TID agreement being considered tonight states the village would return to Milwaukee Tool 80% of tax increment generated by the project annually.
Assuming the village’s current equalized tax rate of $12.37 per thousand of equalized value, the project would generate $32.8 million in tax increment over the 20-year term of TID 19.
To determine how much financial assistance Milwaukee Tool will receive, the village will multiply the additional value the company brings to the site each year by the tax rate. The company then gets 80% of that total annually. The figure can vary from year to year depending on construction timelines and the tax rate each year.
