Trainmaker considering Janesville buildings

By JIM LEUTE ( Contact )   Thursday, Feb. 18, 2010
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Two Janesville buildings are among the group being considered to house a rail car assembly and maintenance operation. Spanish manufacturer Talgo is looking at the Helgesen building and the former Gilman Engineering building. It's also looking at facilities in Milwaukee, Racine, and Appleton. Kyle Geissler reports. You can read more in Thursday's Janesville Gazette.

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ThyssenKrupp, 305 W. Delavan Drive, moved its Janesville operations to Auburn Hills, Mich., in September 2008.

ThyssenKrupp, 305 W. Delavan Drive, moved its Janesville operations to Auburn Hills, Mich., in September 2008.

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The former LSI facility in Janesville is one of two buildings being considered by a Spanish train builder.

The former LSI facility in Janesville is one of two buildings being considered by a Spanish train builder.

— A Spanish trainmaker is considering two empty Janesville buildings for its Wisconsin manufacturing operation.

In addition to the former LSI and Gilman properties in Janesville, Talgo Inc. is looking at properties in Milwaukee, Racine and Appleton, according to a report by BizTimes Milwaukee.

Gov. Jim Doyle and Talgo announced an agreement in July to put two Talgo train sets into service in Wisconsin and to establish new assembly and maintenance facilities in the state.

The rail car assembly plant will support the delivery of Talgo trains throughout the country.

The state plans to buy two, 14-car train sets for $47 million from the company. They will go into service on the Amtrak Hiawatha Service between Milwaukee and Chicago. Each train set seats 420. Existing locomotives will pull the cars.

In addition, the state will buy two more train sets as part of the $810 million in federal stimulus money allocated to high-speed rail projects. Talgo is expected to build those sets.

In Janesville, Talgo is looking at the 700,000-square-foot Helgesen Industrial Center—the former LSI facility—at 2929 Venture Dr.

It also is considering the 214,000-square-foot building that housed Gilman Engineering and ThyssenKrupp at 305 W. Delavan Dr.

According to Talgo’s request for proposal, the company will build the sets over about two years. It’s possible, the company said, that additional manufacturing and assembly would require an extension of the lease.

In its request for proposals, the company said it anticipates a workforce of 50 to 60 and needs a minimum of 80,000 square feet. Main line rail access is necessary, as is track area within the property.

Coldwell Banker Commercial McGuire Mears & Associates is representing ThyssenKrupp in the sale of its Janesville property.

Bill Mears of McGuire Mears said the former Gilman building is next to a main rail line and has a north-south spur along its side. It’s got high ceilings and 35 cranes that could be advantageous to Talgo, he said. Former Gilman employees who now work for R&M Manufacturing in Milton have helped market the property, he said.

ThyssenKrupp wants to sell the building, while Talgo is looking for a lease with an option to purchase. Mears said that if ThyssenKrupp can land a tenant, the focus would shift to finding a buyer for the building.

“Talgo has been on our radar for some time,” Mears said. “We’ve answered their RFP and they’ve toured the property. Now, we’re just waiting for a decision.”

Also awaiting a decision—which could come this week—is Jeff Helgesen. He’s been courting Talgo for the last year, and company representatives toured his facility a few weeks ago.

Helgesen said Talgo wants an 18-month lease for about 80,000 square feet. The company also has asked for an escape clause after 14 months.

Helgesen completely remodeled the former LSI building. He said improvements necessary for Talgo to lease 100,000 square feet of the space would require $375,000.

“That’s not an amount I can cover on a 14-month lease,” he said, noting that Talgo would occupy just 15 percent of his building and use all of its rail service. “If they would go for longer, I could absorb it.”

Helgesen said Talgo originally narrowed its list to three sites: two in Milwaukee and his in Janesville. But as the project dragged on, Talgo’s list of potential sites grew.

“Both the Gilman building and Jeff’s building are great facilities,” Mears said. “I just hope Janesville wins.”

The other sites, according to BizTimes Milwaukee are:

-- The Tower Automotive site, 2900 W. Townsend St., Milwaukee.

-- Super Steel, 7100 W. Calumet Road, Milwaukee.

-- 3441 S. Memorial Dr., Racine.

-- A 246,700-square-foot facility at 1840 W. Spencer St., Appleton.

BizTimes Milwaukee reported that the city of Milwaukee bought 84 acres of the former Tower Automotive site last year for $4.5 million. The city plans to spend about $30 million to redevelop the property.

reader COMMENTS
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(65)
svrwthr
Feb 21, 2010 at 7:52 p.m.
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Hank, and how would you know what is going on with Stoughton Trailers? I was an employee there for 17 years until last year and I know how it is being ran. They will continue to work out of Plant 1 and 6 with the least amount of workforce as possible and bust them as hard as they can so when an employee walks out of there at the end of the day they can't move. It isn't like 5-6 years ago when people used to enjoy working for them. They will keep the Broadhead plant and sell the Evansville plant if the money is right since the Evansville plant is was set up for containers, and now limited van production. The container product can be made cheaper by the Chinese because what containers are used for the Chinese make. Stoughton Trailers uses the same practice of filling the unit as they are being delivered to the purchasers.

And what is with you racist people? A job, a company to offer jobs, who cares where they come from or who they are?

Spanish workers at Stoughton trailers, yes, and they work just as hard as you whitey. Get over yourselves, we are a country of immigrants not white supremicists. No wonder Janesville has such a bad reputation for racism. So much ignorance.

BunBun
Feb 20, 2010 at 7:19 p.m.
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If we get a High speed rail system in this country, manufacturing of rail cars will move to areas where it is cheaper to make them. This is only to cash in on Doyles Madison-Milwaukee line (that won't really be high speed as the lines are not rated for high speed).
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If you want a rail Idea that might work, how about a roll on roll off automobile/passenger line (would not have to be high speed)? Say you want to go to Miami (or Vegas,New York, etc.), load your car in Milwaukee, head to the passenger car and ride to your destination and unload your car. This would alleviate the range problems associated with electric cars and save fuel for everyone else. The only thing would be to keep the cost per ticket comparable to flying.

janesvillean
Feb 19, 2010 at 6:11 p.m.
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The point is that once the US begins building a HSR network there will continue to be orders for trainsets into the future, and Canada and Mexico would be natural markets reachable by the US rail network. Talgo has a facility in the PNW that they used to finish out the trainsets (the shells are still being built in Spain) and it has continued to be a maintenance facility because of the investment that Washington State made.
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Other countries are aware of the importance of public infrastructure investment to their economies. The same is true of other Midwestern cities, like Evanston, which took a dingy "L" platform and turned it into a transit hub, helping spur redevelopment and jobs.
http://chicago.timeout.com/articles/feat...

thekid3477
Feb 19, 2010 at 4:12 p.m.
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hank common sense would say that if the entire world is getting on the highspeed rail thing that the odds are good it will extend beyond 10 years.

janesvillean
Feb 19, 2010 at 2:55 p.m.
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Yes, and our tax dollars also build highways and airports, because they are important components of our transportation system. Meanwhile, China is building over the next three years more high-speed rail lines than currently exist in the entire world, and the number of countries with high-speed rail is expected to double by 2015.

7414
Feb 19, 2010 at 12:59 p.m.
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What about the Caterpillar building in Edgerton?

kawisixer01
Feb 19, 2010 at 12:55 p.m.
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An article about a train company and Hank is talking about the ice rink and Thekid is going on about Mary j......big surprise. Seems like they have "one track" minds.....

BunBun
Feb 19, 2010 at 12:38 p.m.
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ok, here is the basics:
40-50 jobs building rail cars for Doyles trolley to the land of make believe vs. How much money sucked out of the pockets of taxpayers who will most likely never ride on it?
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in general, more jobs would be good but not if they cost the rest of us even more in taxes.

BunBun
Feb 19, 2010 at 12:32 p.m.
Suggest removal

"HUNDREDS OF JOBS WOULD BE CREATED IN THIS COUNTY ALONE IF THEY WOULD END THE HYPOCRISY AND LEGALIZE MARIJUANA."
.
only at taco bell so the stoners could satisfy their munchies. (sorry, couldn't resist)

Bond
Feb 19, 2010 at 11:13 a.m.
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If we were to put leechs on the heads of our elected officials to suck the stupidity out of them, do you think they would be grateful enough not to sue?

thekid3477
Feb 19, 2010 at 11:08 a.m.
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carlitosway: here is a nice read about the economic benefits the state of colorado has enjoyed since implementing medical marijuana. breckenridge, co actually LEGALIZED marijuana possession last fall.

a quote from the link "Just the amount of money they're putting into the economy is staggering to me," Woods said. "No pun intended, but this has become a growth industry.

http://www.denverpost.com/news/marijuana...

vatoloco
Feb 19, 2010 at 11:04 a.m.
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Hank:

Tell us a little bit about the workforce at Stoughton Trailers. Is it comprised mostly of Spanish speaking folks?

vatoloco
Feb 19, 2010 at 10:54 a.m.
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What's a Spainish?

And, "We are not talk people South of the Creek"?????????????????????????

Please make sense yourself before you criticize others. Hypocrite.

svrwthr
Feb 19, 2010 at 10:46 a.m.
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Talgo should look at the Stoughton Trailer facility in Evansville. On or near the rail line, large building with the overhead cranes, empty and for sale/lease. Talgo could probably purchase the building for cheap since the owners are hungry for money and to dump the facility and most likely at less cost Helgeson wants for leasing.

AND NO!, GM is not coming back. Get over it and get out of Janesville for your hopes and dreams are getting lost to the drug dealers and user moving in and business's moving out. Janesville does not work hard enough on bringing business here other than for small business which don't survive nor does it supply the demand for the unemployed. AND NO!, Talgo can't use the GM plant because GM put the plant as idle in order to keep hopes up of Janesville residents up only to kill those hopes in 10 years when idle goes to closed. That idle plant cannot be used for anything other than GM products and will be a worthless pile of medal and eyesore for Janesville forever. Janesville either needs to ride GM's ass and tell them to put something in there within 2 years, let other companies utilize it or dismantle the plant and clean up the site.

thekid3477
Feb 19, 2010 at 10:18 a.m.
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doseman you sound like a teacher. we're not kids or even students. feel free to stay focused on whatever you like. im more than likely going to continue to discuss the economic and overall benefits to society of legalized marijuana. dont like it?? feel free to 'suggest removal' or skip my posts. nvrmnd the fact that the core of my post was JOBS and not marijuana. good day to you sir.

janesvillean
Feb 19, 2010 at 9:56 a.m.
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tiredofhearingit: It is my understanding that the state pitch to GM included the establishment of a Development Opportunity Zone, which is something like a TIF district (the most successful example is Beloit's Gateway project). Any cash that was part of the deal would be paid back during the lifetime of the DOZ. This is not to be used lightly, and I believe that Janesville is holding back on the DOZ authority to use it for any potential return by GM or ultimately redevelopment of the site. It would certainly not be appropriate for a two-year maximum commitment.

doseman95
Feb 19, 2010 at 9:54 a.m.
Suggest removal

Could we please stay focused and stay on topic here?? We already have Hank ruining every blog by trying to turn it into an Ice Rink debate, and now were drifting from trains and potential jobs to marijuana...Stay focused please.

TheJoker
Feb 19, 2010 at 9:50 a.m.
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Does this mean GM is coming back to Janesville?

thekid3477
Feb 19, 2010 at 9:27 a.m.
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carlitosway: if it was legalized the farmers would definitely benefit. the thing about that is you dont even have to legalize marijuana for THAT to happen. call the reps and tell them theyre idiots for not allowing industrial hemp. we are one of the only, if not the only industrialized country that does not allow industrial hemp...because they dont want to send the 'wrong message' about marijuana. anyone who catches a buzz w industrial hemp will only do it once. more headache than buzz.

as for what legal MEDICAL marijuana would do?? well there is business potential for someone to manufacture and sell growing systems, and all the supplies that go along with setting up a grow op. there could be stores that sell the medical marijuana. while the dispensaries may be set up as 'not for profit', they would obviously pay a living wage to a few people to run the store. add the people who would gain income by growing the medicine. google economic impact of medical marijuana in michigan and read some about it.

if marijuana was outright legal well, its ALREADY a billion dollar industry. add all the jobs already mentioned plus more. i personally have a vision of a store front and a warehouse to grow. i would need several people to run both setups. im just one person. give me access to the gm plant(and some financing;) and in a matter of time i could have the biggest indoor marijuana growing operation in the world. i could be the phillip morris of the marijuana world.

i understand part of this thought process is far fetched...but i also understand that part of it is not. add the tax benefits for the city and state of all marijuana sold or even grown vs the money we currently spend trying to eradicate it(its a weed and IMPOSSIBLE to eradicate) and you, in my opinion, have the start of some SOLID economic recovery. one of the main reasons they ended alcohol prohibition was to create a source of revenue during the great depression...

SLAYERTHEGREAT
Feb 19, 2010 at 9:02 a.m.
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A SPANISH TRAINMAKER BRINGING LIFE TO JANESVILLE , A RACIST TOWN .MAKE IT SOMEWHERE ELSE.

carlitosway
Feb 19, 2010 at 8:43 a.m.
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Lets look at the positive of the possiblity and hope for the best.. No matter where they choose it is going to help wisconsin in the long run.

carlitosway
Feb 19, 2010 at 8:40 a.m.
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kid don't get me wrong I to agree it should be legalized FOR medicinal purposes and everyone screened, monitored and levels checked as to only the ones it is meant for having it. Not like the farce of a methadone program in Rock County.JMO

MsKari
Feb 19, 2010 at 8:35 a.m.
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Hank can't you think or talk about anything but that stupid ice rink..Stay with the subject at hand..

carlitosway
Feb 19, 2010 at 8:34 a.m.
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kid where would there be hundreds of jobs if they legalize weed there is enough on the street and no one needs to be hired as so many already sell the stuff. On the other hand it may give the FARMERS a chance to grow crops and bank a little money. Not just make ends meet.

thekid3477
Feb 19, 2010 at 8:24 a.m.
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good one sarahb;)

bigbro
Feb 19, 2010 at 8:04 a.m.
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how do they expect autowokers to make trains?

tiredofhearingit
Feb 19, 2010 at 7:05 a.m.
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"The city does not have the statutory authority to hand out money the way that Hank proposes." -

please do tell......not taking sides here I just want to know...
When the Janesville GM plant was in the running for future small-car production, state and local interests put together a $195 million incentive package:

Janesville: $15 million in cash plus an offer to run GM’s wastewater facility, a value of up to $1 million a year.

oldtimer
Feb 19, 2010 at 7:03 a.m.
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I have ridden this train from Portland to Seattle and they are great, had to make reservations a month in advance, and they run several trains back and forth a day, We took the empire builder from Columbus to portland and back again from Seattle. they had to put extra cars there were so many people riding the train, cheap transportation. Our rail system has to be upgraded. If I was running the budget in this country I would cut Nasa 50% and put it in rail service in this country.

Unidentified
Feb 18, 2010 at 10:41 p.m.
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Well, it's not going to be a windfall of long term employment, but it's something. Hopefully it happens here.

janesvillean
Feb 18, 2010 at 9:18 p.m.
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The city does not have the statutory authority to hand out money the way that Hank proposes.

emac
Feb 18, 2010 at 9:08 p.m.
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I hate to say it, but Hank has a valid point. If the city council spent as much time, effort and money on getting this town back to work as they do working on "creature comforts" we would all be better off.

BostonBill
Feb 18, 2010 at 8:51 p.m.
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Hank stay on “track”? LOL Hank always gets derailed.

ne1but24n18
Feb 18, 2010 at 7:43 p.m.
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Come on HANK lets stay on track here. not the same blog. i think your lost.

thekid3477
Feb 18, 2010 at 6:53 p.m.
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hank...i dont personally care what the city does w the rink...but i have a question for you. i thought they were talking 2 million and today ive seen you mention 8 million and 11 million. could you please explain...maybe you could steer me to your side...

janesvillean
Feb 18, 2010 at 6:46 p.m.
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Matt, the contract is the contract. Talgo and Wisconsin hope they can get more customers as HSR projects begin to take shape, but even that might not guarantee continued employment at the same site. In any case they can't promise to stay and make trains they don't have orders for.

Matt__Gaboda
Feb 18, 2010 at 6:41 p.m.
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I was opposed to the Governor's no bid acquisition of the Talgo trains. Wisconsin needs to make the best of this situation, but it appears to be a temporary arrangement. If the stars align, maybe Talgo sticks around. To me it sounds like a short term deal. When companies are looking for "escape clauses", I'm not going to hold my breath long term. I hope they come to Rock County. A job is a job, but I have a feeling this might be another setback for this already decimated area. My gut says Milwaukee.

slantbob
Feb 18, 2010 at 6:25 p.m.
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If I were a betting man I would put my money on the old Tower Auto site in Milwaukee winning this race. It is going to be hard for any of the other privately owned sites to compete with the city owned tower property. not to mention the fact that Milwaukee also has deep water port access and sits right on the proposed "High Speed" rail corridor.

thekid3477
Feb 18, 2010 at 5:44 p.m.
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i understand if you are unemployed why 50-60 jobs may not seem like much, and i know thats where the frustration in your post came from, but props to you for realizing that even adding ONLY 50-60 jobs is a good thing.

on a side note, and i know you agree w me bobb so this isnt directed at you, HUNDREDS OF JOBS WOULD BE CREATED IN THIS COUNTY ALONE IF THEY WOULD END THE HYPOCRISY AND LEGALIZE MARIJUANA.

quisitive
Feb 18, 2010 at 5:13 p.m.
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Where is Sheridan, I am suprised he hasnt already been telling everyone what a great job he and the democrats have been doing, getting Talgo here. Oh wait, I forgot he is probably on a trip for two paid for by the state.

emac
Feb 18, 2010 at 5:08 p.m.
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Getting the ball rolling is what this county needs most. If you can get new blood into town (any town in Rock county)other companies are going to notice when the do their research. And make sure everyone knows why they picked Rock county over other choices. 50-60 people is a substantial number for any new project. I am only 50yrs. old and haven't been here forever like a lot of folks, but I'll bet when GM (or whoever owned the plant to begin with) started here it wasn't with thousands of people the first year.

El_Conquistador
Feb 18, 2010 at 5 p.m.
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It would be cheaper if the state just gave 50-60 people a million dollars and not do this idiotic, just shy of a billion dollars rail project to begin with.

thekid3477
Feb 18, 2010 at 4:54 p.m.
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bobb: would you rather have those 50-60 openings in ALL of milwaukee county??

etownguy
Feb 18, 2010 at 4:52 p.m.
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What about the very large building that once housed Dana in Edgerton?? Perfect site and right next to the rail road.

emac
Feb 18, 2010 at 4:47 p.m.
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Tracks run right into the LSI building and it looks great from the outside now. Is the Gilman building the same. With tracks running into the building?

wahoo_35
Feb 18, 2010 at 4:40 p.m.
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Quick give them two million dollars too!

partarican1
Feb 18, 2010 at 4:29 p.m.
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I hope JVL gets this, but look how far off the actual rail line these trains would actually use when compared to the others in this competition. It would seem Gilman is a good choice....

emac
Feb 18, 2010 at 4:22 p.m.
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Get on Janesville 5.0

snarly
Feb 18, 2010 at 4:17 p.m.
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O here we go hope and pray.

janesvillean
Feb 18, 2010 at 4:16 p.m.
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Given that the GM site is not available I'm glad we have two candidate sites that give us a shot at getting this facility.

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