With the city council’s unanimous approval Monday, Janesville will invest even more in SHINE Medical Technologies’ objective to build a 30,000-square-foot medical isotope production facility near the Southern Wisconsin Regional Airport.
The council approved an amendment to a 2012 tax increment financing agreement with SHINE to provide an extra $1.5 million to add to the facility.
With the amendment, the city’s anticipated investment in SHINE’s facility has grown from $4.97 million to $6.47 million. The project is expected to cost $180 million, Economic Development Director Gale Price said.
SHINE will build a prototype facility known as “Building 1” on private land adjacent to where SHINE’s full-scale facility will be built. Building 1’s goal is to prove to investors SHINE’s ability to produce isotopes used in medical bone and tissue scans.
The city won’t have any involvement in the prototype facility’s initial construction. Instead, the $1.5 million will be used to move Building 1 to the permanent facility at a later date, Price said.
As part of the deal, SHINE doubled the guaranteed assessed value of the final facility from $25 million to $50 million. SHINE also guaranteed 125 jobs will be created within five years of the beginning of production, Price said.
The amendment says the project must be under construction by Dec. 31, 2020, or December 2022 if SHINE is still pursuing financing and final regulatory approval, according to the memo. SHINE and not the city will obtain an access permit through the state department of transportation, he said.
“We believe that they’re going to make this happen and move this forward,” Price said.
Council President Doug Marklein said the prototype mitigates risk. If something goes wrong, it’s better that happens in a prototype facility rather than a permanent building, he said.
“It seems a prudent way to go,” Marklein said.
If the plan somehow falls through, the money invested in the land via installed water and sewer lines won’t go to waste. The city will still own the 84-acre, shovel-ready parcel and could sell to another developer, Price said.
Price said the prototype isn’t anticipated to require Nuclear Regulatory Commission approval. The Gazette previously reported the commission was uncertain if it would be the authority to regulate Building 1.