U.S. Venture plans to move its headquarters to 222 Building in downtown Appleton

APPLETON — U.S. Venture Inc. plans to purchase and renovate the landmark 222 Building on West College Avenue in downtown Appleton for use as its new corporate headquarters.

The company estimated it would invest $56 million in the project. About 550 employees would be based in the 10-story building.

For the past six years, U.S. Venture had planned to build a new corporate headquarters on the bluff south of Lawrence Street. That's no longer in the company's immediate sights, though it still could build on the land at some point in the future.

U.S. Venture distributes renewable and traditional energy products, lubricants, tires and undercar parts and manages energy and information in the global movement of goods. It has more than 4,200 employees in 48 states. It currently is headquartered in Kimberly but desires to capitalize on, and contribute to, the vibrancy of Appleton's downtown.

The company's long-awaited move to downtown Appleton, albeit at a different location, was welcome news to Appleton Mayor Jake Woodford. He has been in communication with company leaders since he was elected four years ago.

"This represents an exciting opportunity for our local economy and certainly for our downtown," Woodford told The Post-Crescent. "To have a major corporate headquarters relocate into our downtown — it has been a very long time since that has happened for the city of Appleton."

U.S. Venture will request financial assistance from the city through Tax Incremental Financing District No. 11 to make the project happen. The amount hasn't been defined.

"At this point, the city hasn't made an offer to the company, and the company hasn't made a request to the city," Woodford said. "That will come as we get into looking at the results of the TIF analysis and negotiating the details of the development agreement."

The Common Council met in closed session Wednesday to discuss the city's role in the project.

U.S. Venture spokeswoman Mercedes Bereza said the company is grateful to Woodford and the city for its partnership on the project. She said U.S. Venture and the city share a vision that moving the headquarters downtown "represents the optimal scenario and benefit for our community, our team members and our customers."

Bereza said U.S. Venture has a signed letter of intent to purchase the building and its related parking lots from Pfefferle Properties. The project is contingent upon TIF assistance and the amendment and extension of $20 million in enterprise zone tax credits previously granted to U.S. Venture by the Wisconsin Economic Development Corp.

The 222 Building has 243,000 square feet of space, which is four times the size of U.S. Venture's Kimberly headquarters. The company would occupy all 10 floors, other than spaces already occupied by lessees, and have room for growth.

Why did U.S. Venture change focus?

U.S. Venture has outgrown its Kimberly headquarters at 425 Better Way, which led to its plan to relocate to downtown Appleton. The company acquired and cleared eight acres of property on the bluff site, including Trinity Lutheran Church, before the full effect of the coronavirus pandemic was realized.

Bereza said COVID-19 changed the operations and outlook of U.S. Venture and many other companies.

"While the decision to pause construction on the bluff site for the near term was a difficult decision, we simply do not feel ready to build a new building in the post-COVID era," Bereza said. "High construction prices, high interest rates and the excess of available office space in the area, coupled with uncertainty regarding what should be built, including size of the building needed and the number of team members who will be in-office, have prompted us to reevaluate our plans."

U.S. Venture already leases three floors of the 222 Building, and the assessment of the 117 employees based there has been "incredibly positive," Bereza said.

Woodford praised U.S. Venture's commitment to downtown Appleton.

"At a time when so many corporations are reducing their office space or abandoning communities and downtowns, U.S. Venture is investing in it," he said.

What will happen to the bluff site?

U.S. Venture doesn't have definitive plans for the eight acres on the bluff site.

"We remain committed to, over time, exploring options for the bluff site, including a possible office building for the company in the future," Bereza said.

Woodford said U.S. Venture intends to work with the city and the neighborhood to ensure that "there's a benefit to the community over time with the land uses on the bluff site."

When will the 222 Building renovation begin and end?

U.S. Venture hopes to complete the purchase of the 222 Building early next year. The renovation would occur soon after and involve increasing the energy efficiency of the windows and heating and cooling systems, among other improvements.

"This adaptive reuse and investment reflect our deep commitment to environmental sustainability," Bereza said.

The company anticipates finishing the project in summer 2025, though that could change as the renovation plans are developed.

Woodford said there is value in "using what's already here."

"Look at the way we've approached the library project," he said. "It's a similar concept."

What will happen to the tenants of the 222 Building?

Tenants in the 222 Building include Mondo! Wine Bar & Retail, Johnson Financial Group, The Post-Crescent, AIA Corp. and ThedaCare.

Bereza said all of the leases would be honored.

"We will work collaboratively with existing tenants as needed throughout this process," she said.

Where will U.S. Venture employees park?

The purchase of the 222 Building includes seven other parcels totaling about 5 acres and 500 parking stalls.

In addition, U.S. Venture has inquired about purchasing parking permits in the city's three parking ramps.

Woodford said the Appleton parking utility has sufficient capacity to accommodate U.S. Venture.

"Ideally they would use some of the city-owned parking, which would mean revenue for the parking utility," he said.

What will happen to the headquarters in Kimberly?

At least for the near term, U.S. Venture said it will continue to own the building at 425 Better Way. The long-term plan for the building has yet to be determined.

What is the history of the 222 Building?

With 10 floors of office space, plus a mechanical floor above, the 222 Building towers 179 feet, 8 inches, according to Post-Crescent archives. It edges Zuelke Flats as the city's tallest building.

The building opened in 1952 as the headquarters of Aid Association for Lutherans. An addition was completed in 1966.

Thrivent Financial, which was formed by the merger of AAL and Lutheran Brotherhood of Minneapolis, sold the building in December 2003 to a group of investors headed by John Pfefferle, Paul Hoffman and Steve Evans. The trio changed the name to the 222 Building.

Contact Duke Behnke at 920-993-7176 or dbehnke@gannett.com. Follow him on Twitter at @DukeBehnke.

This article originally appeared on Appleton Post-Crescent: U.S. Venture to move headquarters to 222 Building in downtown Appleton