The state Legislature’s Joint Finance Committee gave final approval for a new, $150 million Hill Farms state office building and a $36 million parking ramp to replace the current, 57-year old Department of Transportation building on Madison’s west side. The new, 600,000-square-foot building will be nine stories tall and house a multitude of state offices, reducing the total state office building space by 54,000 square feet. It is also expected to reduce annual rent payments by $605,000, and costs for utilities and other expenses by about $1 million each year, according to a madison.com report.
The approved transaction includes the sale of 13.9 acres at the Hill Farms site and another 4.4 acres at 801 W. Badger Road. Both will be developed privately.
The new site is expected to generate 1,943 construction jobs, 1,359 private-sector jobs, $15.4 million in one-time state and local taxes related to construction, and increase local and state taxes by $11.4 million, according to an economic impact analysis provided by Baker Tilly. Smith Gilbane is the developer.
Groundbreaking may begin later this year.
