JANESVILLE — The Janesville City Council voted unanimously Monday in favor of an agreement to construct a new electrical substation at Innovation Park on the southside.
The project has a price tag of $7.8 million.
The 132-acre Innovation Park business park, located near Highway 11 and County Trunk Highway G, is a cornerstone of the city’s long-term economic growth strategy. Much of the park’s infrastructure was installed in 2024, following the city’s purchase of the land in 2023.
Earlier this year, the council established a tax increment finance district that encompasses the site and approved a development agreement with Zilber Ltd., a Milwaukee-based developer of residential, commercial, and light industrial properties, to develop the first 26 acres. Zilber’s construction of a spec building on the site is now underway.
At Monday’s meeting, the city’s economic development director, Jimsi Kuborn, presented the next phase of the TID plan. In partnership with Rock Energy Cooperative, an electrical distribution cooperative serving approximately 19,000 residential, commercial and industrial members in south-central Wisconsin, including in Janesville, the city will construct the new electrical substation to serve Innovation Park.
Kuborn said Zilber has used the last remaining five megawatts of power available at the site, creating an urgent need for additional electrical capacity.
“Without a substation, we will not be able to do any additional industrial development on the remainder of this land,” Kuborn said.
Under the agreement approved Monday, the city will convey five acres to Rock Energy Cooperative for the construction, operation, and maintenance of the 30-megawatt substation. Rock Energy Cooperative will in turn compensate the city at a rate of $88,000 per acre, totaling $440,000.
Rock Energy Cooperative will manage all aspects of the project, including construction, equipment procurement, and operation. Any unused portion of the land will be returned to the city.
The agreement also provides for the city to reimburse Rock Energy Cooperative for loan interest once the substation becomes operational at full capacity. These costs are included as eligible expenses under the next tax increment district.
The loan will be amortized over 30 years at a five-year interest rate.
During Monday’s discussion, council members clarified that the substation will serve Innovation Park only and is unrelated to any potential development at the nearby GM/JATCO site or a possible data center there.
Kuborn said development of the substation will ensure Innovation Park has the infrastructure necessary to attract new businesses and support continued industrial growth there.
“This is a new partnership between the city of Janesville and Rock Energy Cooperative, and we’re extremely grateful for it,” Kuborn said.
