NEW INFORMATION: Wisconsin DOA lists Chippewa Falls facility among properties for potential sale

By: AP Email
By: AP Email

Statement from Stephanie Marquis, Spokesperson for the Wisconsin Department of Administration:

“It is too early to speculate on the potential sale or lease of any of these properties because the State has just begun the review process.  State law required the agency to submit a list of State assets that may potentially be sold or leased in the next biennium to the State Building Commission by July 1, which has been done.  We are not proposing to sell or lease anything at this time, and we will be working with independent financial analysts who are experts in determining value and market potential.  They will make any non-biased recommendations as to what potential sales or leases may make the most sense financially in the long-term for the State and the taxpayers.”

MADISON, Wis. (AP) -- The state Department of Administration has put together a list of state properties that could end up for sale.

The list DOA sent to the state Building Commission on Monday includes underused acreage at the Department of Transportation's Hill Farms building in Madison; a hangar at Dane County Regional Airport; telecommunications infrastructure around the state; Ethan Allen School, a now-shuttered juvenile prison in Wales; the Badger Road State Office Building in Madison; facilities for the developmentally disabled in Union Grove and Chippewa Falls; and heating and cooling plants around the state.

DOA Secretary Mike Huebsch said no decisions on selling or leasing the assets have been made.

The 2013-15 state budget required DOA to create an inventory of state assets that could be sold or leased in the next biennium.
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Letter to State of Wisconsin Building Commission:

June 30, 2014

Dear Members of the State of Wisconsin Building Commission:

As you are aware, 2013 Wisconsin Act 20 contained provisions relating to the potential sale or lease of certain state
assets. Specifically, s. 13.48(14)(d) requires the Department of Administration (DOA) to submit an inventory of State
assets that may potentially be sold or leased in the next biennium to the State Building Commission by July 1. This letter
serves as notice in accordance with that statutory requirement.
Under a related provision, s. 16.848(1)(a), DOA is authorized to offer for sale or lease any state-owned real property
(unless otherwise prohibited by state or federal law), if the department determines the sale or lease is in the best
interest of the State. While DOAis not proposing to sell or lease any assets at this time, DOAis undertaking a thoughtful
and careful analysis to determine the value of certain state assets, as well as obtaining cost-benefit analyses and other
data to ensure any transaction meets statutory requirements while providing value and reducing risk for customers and
stakeholders.

Below is an inventory of assets that may be considered for sale or lease at this time. It is important to note that
inclusion on this list does not mean an asset will be sold or leased. In fact, no decisions have been made in this regard.
Any possible transactions must be prudent, logical, and in full compliance with the relevant provisions of 2013 Wisconsin
Act 20.

• Underutilized acreage at the Hill Farms State Transportation Building, Madison
• T-Hanger at Dane County Regional Airport, Madison
• Telecommunications towers and related infrastructure, various locations statewide
• Northern Wisconsin Center, Chippewa Falls
• Underutilized acreage at the Southern Wisconsin Center, Union Grove
• Ethan Allen School, Wales
• Badger Road State Office Building, Madison
• Knapp House, Madison
• Wiscraft Workshop & Administration Buildings, Milwaukee
• Heating & Cooling Plant fleet, various locations statewide

Fair market value is not provided in this correspondence due to the complexity of such a determination as well as the
negative impact premature disclosure of such information could have on any future negotiating process.
In addition to sharing information about assets that may be considered for lease or sale, I would like to take this
opportunity to provide you with an update on this process as it relates specifically to the hiring of key industry experts to
assist in evaluating the feasibility and impacts of selling or leasing these assets. These experts will provide highly
specialized, detailed and precise services as we work to determine what asset sales or leases - if any - may make the
most sense for Wisconsin and its taxpayers.

Below is a list of independent expert consultants currently engaged by the State:

• Public Financial Management, Inc.; independent financial advisor; heating & cooling plant, utility, and related
assets
• Robert W. Baird & Co.; independent financial advisor; real estate development services
• William Blair & Company; independent financial advisor; public private partnerships services
• Loop Capital Markets; independent financial advisor; general services
• J.P. Morgan Securities LLC; asset broker; heating & cooling plant, utility, and related assets
• Latham & Watkins LLP in partnership with Godfrey & Kahn, S.c.; legal services; heating & cooling plant, utility,
and related assets

These experts will utilize industry accepted evaluation methodologies and analyze recent similar transactions to properly
determine the risks, benefits, costs, value, and impact of such transactions to ensure we have the information and
analytical capabilities necessary to make informed decisions regarding the future of these assets.
The broader process of reviewing assets for potential sale or lease will take place in the coming months. Should any of
the assets referenced in this correspondence be deemed appropriate for potential sale or lease, DOAwill follow the
statutory processes as they relate to seeking State Building Commission and Joint Finance Committee approvals to
complete such a transaction.

Sincerely,

Michael Huebsch
Secretary


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