JANESVILLE — The Janesville City Council is expected to consider two tax increment financing (TIF) agreements with GEA Systems North America LLC that would support the company’s planned $25.2 million expansion on Janesville’s east side — and the creation of at least 52 new full-time living wage jobs at Monday night’s meeting.
The company wants to construct a 70,000-square-foot office, manufacturing, research and industrial facility at 3901 Enterprise Drive on nearly 14 acres of city-owned land in Tax Incremental District No. 39. Construction is expected to begin this fall, with the facility targeted for completion by the end of 2027.
City staff indicated in the memo said they have worked with GEA for the past two years on plans to expand the company’s Janesville campus. The new facility would complement GEA’s existing repair facility, which was built in 2022 and 2023 and later expanded with a 20,000-square-foot food innovation center in 2025.
GEA Systems North America plans to combine the 13.94-acre city-owned parcel with 16 acres already owned by the company, creating a campus of nearly 30 acres.
As part of the proposed development agreement, the city would sell the 13.94-acre parcel, valued at $672,000, to GEA for $1. In addition, the agreement would provide a 10-year, pay-as-you-go TIF incentive equal to 66% of the newly created tax increment. The total development incentive, including the land value, would not exceed $928,900.
According to city documents, the project includes approximately $20.6 million in construction costs and $4.6 million in machinery and equipment. GEA also plans to invest about $1.76 million to help make the company more environmentally friendly and to help reduce their ecological footprint.
City staff estimate the development will increase the property’s taxable value from $0 to approximately $7.7 million.
In a separate agreement, the city council will look at Monday night; the city would provide up to $321,776 over 10 years as a performance-based jobs incentive if GEA creates 52 full-time living wage equivalent positions. The company expects the new jobs to pay an average annual salary of $95,484.
Under the agreement, reimbursements would begin in 2029 and continue through 2038. GEA would receive up to $618.80 per qualifying job each year, with payments reduced if it falls short of its hiring commitment.
The positions must meet the city’s living wage standard, currently $29.75 per hour before benefits, based on the Massachusetts Institute of Technology’s Living Wage Calculator for a household with two adults and two children.
The new hiring commitment builds on a 2022 TIF jobs agreement under which GEA Mechanical Equipment US Inc. committed to creating 74 living wage jobs. City documents state those jobs have been created. With the planned expansion, GEA anticipates hiring an additional 20 to 30 employees beyond the required 52 positions, bringing total campus employment to at least 126 workers and potentially more than 156.
According to the memo, the incentives are necessary for the project to move forward. Documents state the project would achieve a 10.3% internal rate of return with the city’s assistance, meeting GEA’s investment benchmark.
GEA North America is one of the world’s largest suppliers of systems and equipment for the food, beverage and pharmaceutical industries. Founded in 1881, the company employs more than 18,000 people across five divisions in 62 countries.