Milwaukee officials are moving forward with plans for a new public works facility on the city’s north side, a project that could ultimately open up two riverfront sites in the Menomonee Valley for redevelopment.

The Department of Public Works is proposing to invest roughly $30 million to redevelop an existing 106,500-square-foot industrial building on a 10.7-acre site at 3282 N. 35th St., near the Century City Business Park.

Under a plan recommended for approval by the Common Council’s Zoning, Neighborhoods and Development Committee on Tuesday, the city would purchase the North 35th Street building from United Realty Inc. for no more than $2 million.

DPW Commissioner Jerrel Kruschke said the north side project would replace the department’s aging electrical services facility at 1540 W. Canal St., a Menomonee Valley building constructed in 1925. Keeping that facility operational now costs the city about $2 million a year in maintenance alone.

“Over a period of time, we’re going to end up losing more money if we do not relocate,” Kruschke told committee members.

The Canal Street site encompasses nearly 7 acres along the Menomonee River, which Kruschke said is “an ideal spot for new development.”

Part of the funding for the 35th Street project would come from $9.3 million in insurance proceeds the city received after a 2023 fire at the city’s former recycling facility at 1401 W. Mount Vernon Ave. After the fire, the department opted not to rebuild that facility and has no plans to return operations there.

David Misky, Redevelopment Authority assistant executive director, said the city could eventually sell that 8-acre riverfront site as well.

The Menomonee Valley has been steadily redeveloped over the past several decades, as long-idled industrial land has given way to new industrial buildings and other commercial development.

While private real estate development has been successful in the Menomonee Valley, a large amount of real estate there is still owned by the public sector. In total, the city of Milwaukee and Milwaukee Metropolitan Sewerage District still own a combined 51 acres of riverfront land in the Menomonee Valley.

Kruschke estimated the total cost of redeveloping the 35th Street building, including the property purchase and other expenses, at $30 million to $40 million. Constructing a brand-new facility from the ground up would be significantly more expensive, he said, potentially reaching $60 million. He cited a recent public works facility built in Germantown that was smaller than what Milwaukee needs but still carried a $60 million price tag.

If approved, the new facility is not expected to open until 2029 or 2030 and would require funding in future city budgets.

The Public Works Department’s purchase request will be reviewed next by the Common Council later this month.