The State Building Commission voted Wednesday to endorse the sale of a former state office building at 1 W. Wilson St. to the state’s preferred buyer, Landmark Development Services Company LLC, for $10 million.
The sale now advances to the Legislature’s budget committees, where approval would begin a property closing process with Landmark Development.
Landmark plans to redevelop the building, which could become the future site of an Amtrak train station serving a western extension of the Hiawatha rail line that would connect Madison and Milwaukee.
Commissioners approved the sale for $10 million even though it is considerably less than two appraisals that estimated the fair market value of the property at $16.5 million and $20.9 million.
However, the estimated cost to state taxpayers to bring the building up to code and implement all of the upgrades (mechanical, plumbing, etc.) to enable the building to function safely came to nearly $194.4 million in 2025 dollars, so the sale at below the appraised value will save taxpayers considerably more money.
This estimate is for the cost of renovation only. It does not include the tax revenue that will be derived from a redeveloped property.
Among the possible uses for the 1 W. Wilson property are multifamily housing and hospitality. The building also could include retail outlets that serve commuters using a future Amtrak station that will be part of the building’s redevelopment.
The 1 W. Wilson Building is the former home of the Wisconsin Department of Health Services. As part of the state’s Vision 2030 space consolidation program, the DHS has relocated to the GEF-1 Building, 201 E. Washington Ave., in Madison.
The 422,000-square-foot Wilson Street building was listed on the National Register of Historic Places on January 28, 1982, and on the state’s register on Jan. 1, 1989.
