LAND AND SPACE

Milwaukee's Kinnickinnic was once an endangered river. Now it's drawing development and a RiverWalk

Tom Daykin
Milwaukee Journal Sentinel
The former Solvay Coke site is among the parcels on Milwaukee's Kinnickinnic River that are drawing development interest — including a possible corporate headquarters relocation.

Just over a decade ago, Milwaukee's Kinnickinnic River landed on a list of America's most endangered rivers.

Now, after years of cleanup, the waterway that winds through Milwaukee's south side is landing a big commercial development — and a RiverWalk.

And more projects, including one that could involve a large corporate headquarters relocation, are in the works for sites overlooking the long-neglected river.

"Now is the time for the renaissance of the Kinnickinnic," said Rocky Marcoux, city development commissioner.

Utility and transportation contractor Michels Corp. on Monday announced plans to develop River 1, a mixed-use project to be anchored by an eight-story, 120,000-square-foot office building housing around 400 Michels employees.

That $49 million first phase, which includes around 1,000 underground parking stalls, "establishes a major office presence" on the river, Marcoux said.

River 1, which could include additional offices, an apartment building and a hotel, is planned for 6 acres along a bend in the Kinnickinnic River, west of South First Street and north of West Becher Street. The Horny Goat Hideaway tavern was there until it closed in 2015.

River 1, which could total $100 million with the additional phases, would feature a RiverWalk.

That would be part of a larger riverfront walkway that city officials and others are planning for the Kinnickinnic River.

The Kinnickinnic RiverWalk and River 1 would both be in the city's new Harbor District.

That area is around 1,000 acres bordered roughly by South First Street, the lakefront, the Milwaukee River and Bay Street/Becher Street.

The RiverWalk could eventually join other segments that would be developed, said Lilith Fowler, executive director of Harbor District Inc. That nonprofit group is helping lead the district's transition from former heavy industrial sites to offices, housing and other new uses.

The first step in creating a RiverWalk on the Kinnickinnic will be a new zoning district that sets design standards. That will likely undergo Common Council review this fall, Fowler said.

The walkway will be an important part of River 1's appeal to other office tenants, as well as investors who would help develop the apartments, hotel and other commercial uses, said Tim Michels, vice president of Michels Corp.

Michels said his company was drawn to the site in part because "people like to be near water."

River 1's first development phase could begin construction this fall, with completion by summer 2020, he said.

The River 1 mixed-use development, overlooking the Kinnickinnic River at West Becher and South First streets, would be anchored by an office building used mainly by Michels Corp.

Another nearby waterfront development site was sold in June.

The 2.3-acre parcel, which overlooks the Kinnickinnic River at 1958-1970 S. First St., was sold for $1.1 million to a group led by San Diego investor John Junge, according to state real estate records.

Junge couldn't be be reached for information about his plans for the property.

The site, home to an empty industrial building, will likely be redeveloped with a mix of new uses, Fowler said.

Also, We Energies is continuing its environmental cleanup on a former Harbor District industrial site that includes a half-mile of waterfront, which could land a major development prospect.

The 47-acre former Milwaukee Solvay Coke Co. site, 311 E. Greenfield Ave., lies primarily south of East Greenfield Avenue, along the Kinnickinnic River and roughly two blocks east of South First Street.

We Energies acquired the property last year. The company plans to have the property ready for development by 2019, said spokeswoman Cathy Schulze.

Komatsu Mining Corp. is considering the site for a possible relocation of some or all of its offices and manufacturing operations now based at 4400 W. National Ave., West Milwaukee, according to sources familiar with those plans.

The company, which bought Joy Global Inc. in 2017, also could relocate some operations from outside Wisconsin to the former Solvay site.

In a statement, Komatsu said it is "always open to exploring potential opportunities and future possibilities" with its local and state partners.

"No changes to our Milwaukee operations have been established at this time," the statement said, "and we will not comment on speculation about any particular opportunity."

Various prospective developers have contacted We Energies about the Solvay site, Schulze said, but the company hasn't yet "committed to anyone at this time."

The Solvay site does face a challenge involving access.

That's now limited to East Greenfield Avenue, with a low railroad overpass making it impossible for large trucks to reach any future light industrial buildings.

The portion of the street below the overpass could be lowered to make truck access possible.

A more expensive option would be to extend East Mitchell Street to the site's southern portion with a new railroad underpass. That would require relocating a Milwaukee County Transit System facility, at 1710-1716 S. Kinnickinnic Ave.

Meanwhile, Pier Milwaukee marina, 2078 S. 4th St., just across the river from the River 1 site, was sold recently for $2.1 million to Beacon Marine, said Dan Walsh, executive vice president of Transwestern, which brokered the sale. 

The Kinnickinnic River's long-term cleanup is helping encourage such investments, Fowler said.

"People can see they're not sitting on a cesspool," Fowler said. "They're sitting on a river."

The river's "improved health and vitality" is a major factor in Michels Corp.'s decision to develop River 1, said Thad Nation, a company spokesman.

There has been progress in cleaning up the Kinnickinnic.

But there's still a lot of work to be done, said Cheryl Nenn of Milwaukee Riverkeeper, a group that does cleanup activities and supports policies to improve the Milwaukee River Basin.

Progress in cleaning up the Kinnickinnic River has made it more welcoming to pleasure boats, and is encouraging new developments.

In 2007, American Rivers, another advocacy group, named the Kinnickinnic as one of the country's 10 most endangered rivers. The river's pollution is tied to its industrial past, and its status as Wisconsin's most urban waterway.

The following year, Mayor Tom Barrett, the U.S. Environmental Protection Agency and then-Gov. Jim Doyle announced a $24.4 million cleanup for the Kinnickinnic.

The project removed contaminated sediments along a 2,000-foot section of the river between West Becher Street and South Kinnickinnic Avenue.

That includes the area along the River 1 site and Junge's property, as well as two marinas.

"That made a big difference in pleasure boats using that part of the river," said Ron San Felippo, vice president of the Board of Harbor Commissioners.

Also, the Milwaukee Metropolitan Sewerage District continues to remove deteriorated concrete channels from the Kinnickinnic River, replacing them with rocks.

The result is a wider river, with a more natural appearance and less flooding. The improvements also help prevent soil runoff into the Kinnickinnic.

The river "still has a long way to go," Nenn said.

But it is slowly getting cleaner.

Milwaukee Riverkeeper gave the Kinnickinnic an "F" grade in the group's 2016 Milwaukee River Basin report card.

The 2017 report card, coming this fall, will give it a "D" grade, Nenn said.

And more help is on the way.

The sewerage district plans to continue removing concrete channels further upstream.

And the Harbor District land and water use plan includes a proposed "water wheel" near the River 1 site that would scoop up trash. 

Also, MMSD's river skimmer collects trash from the Kinnickinnic River during its annual late April to late October season.

Nenn recalls joining Milwaukee Riverkeeper 15 years ago. A lot of people told her not to bother with the Kinnickinnic because "it was too far gone."

But the dredging project, concrete removal and other factors have "given me hope that we can turn this river around and bring it back to life," Nenn said.

"I think it has the potential for a bright future," she said.

Tom Daykin can be emailed at tdaykin@jrn.com and followed on Instagram, Twitter and Facebook.