MILWAUKEE WATER COUNCIL ACCELERATOR BUILDING

223 West Pittsburgh Milwaukee, WI

A Collaborative Building Lead By The Milwaukee Water Council To Further The Development Of The Milwaukee Region As A World Hub For Freshwater Research,

Economic Development And Education.

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Executive Summary

MILWAUKEE WATER COUNCIL ACCELERATOR BUILDING

223 West Pittsburgh Milwaukee, WI

A Collaborative Building Lead By The Milwaukee Water Council To Further The Development Of The Milwaukee Region As A World Hub For Freshwater Research,

Economic Development And Education. Project Information – Concept: The Milwaukee Water Council Accelerator Building (the “Project”) will be a 93,035 square foot, seven story, high-end loft office building located at 223 W. Pittsburgh in Milwaukee’s Historic Fifth Ward. The Project will be a complete refurbishment of the historic building into first class office and research space. The historic building will feature exposed timber ceilings, exposed support beams, and expansive views of downtown Milwaukee and the Reed Street Yards. The building will house research facilities for private companies, universities, existing water related companies, the Milwaukee Water Council, companies promoting business development, and incubator space for new emerging water related companies. The Milwaukee Water Council pursues its mission to make the Milwaukee Region the world water hub for freshwater research, economic development and education. Developed in 2007, the Milwaukee Water Council consists of members from business, academia and government working in collaboration to accomplish the mission and vision. The Project will be catalytic to this mission by creating an arena that will attract and create new businesses in the water industry. Specifically, the Project will be a collaboration between universities and businesses that will create an environment of education, research, and advanced business development in the water industry. The users of the building will include the Milwaukee Water Council, University of Wisconsin-Milwaukee, University of Wisconsin-Whitewater, A.O. Smith, Badger Meter, Sloan Valve, Veolia Water, The Wisconsin Economic Developoment Corp., Pave Drain, Bright Blue Alliance, and engineering firm Gannet Fleming.

Additionally, other users may include Advanced Micro Devise Systems, Marquette University, and other water related companies and educational institutions. The Water Council can execute their mission by creating partnerships between educational institutions, established water companies, and start-up water companies, to grow the water industry in Milwaukee, WI. The first floor of the Project will feature common area amenities that will be unique to this Project. These amenities will include a 45 person lecture hall, exhibition space for new prototypes, common gathering area, café, and a communal flow lab - a necessary but expensive piece of equipment for water research and product development. These amenities add to a long list of attributes that will draw new businesses to this Project. Milwaukee Region – Water Hub: The Milwaukee Region is blessed with an abundance of fresh water. The area also contains a potent concentration of companies in the business of water and academic prowess in the water research field. With a strong, supported strategy to align these companies and academic research capabilities, the Milwaukee Region is a world hub for freshwater research, economic development, and education. The Milwaukee Region is uniquely positioned to take the lead in this incredibly

important industry. Over 150 water-related companies locate operations in the Milwaukee area, including five of the 11 largest water firms in the world. Many are headquartered in the Milwaukee area, including water industry giants Badger Meter, A.O. Smith, and Kohler and a number of smaller, emerging firms. Some companies recognize this advantage already: GE and Pentair formed a global residential water filtration

joint venture in 2008, and they chose to locate their global headquarters in the Milwaukee Region. Academic and research facilities also put the Milwaukee Region at a distinct advantage. Over 100 academic scientists and researchers are focused on water in this region and in areas adjacent, a number projected to grow significantly in the next decade. The Great Lakes Water Institute is the largest freshwater research facility on the Great Lakes, Marquette University is a leader in anaerobic treatment and the Milwaukee School of Engineering is stepping up its work with companies to develop new, patentable products. Sizable research resources exist at the University of Wisconsin-Madison, the home of limnology, and other state schools such as the University of Wisconsin-Whitewater and the University of Wisconsin-Parkside which provide significant facilities and staff

supporting research for lakes, rivers, ecosystems and processes for fresh water preservation, purification and recycling. Project Location: The Project is located at 223 W. Pittsburgh Avenue in Milwaukee, WI, in the Historic Fifth Ward, which is located less than a mile south of downtown Milwaukee and southwest of the Historic Third Ward across the Milwaukee River. The Project is located directly to the east of the Reed Street Yards, which has been surrounded with catalytic developments over the last few years. Projects in the area that have added to the rejuvenation of the Fifth Ward neighborhood are the Harley Davidson Museum, the Iron Horse Hotel, and the Point condominiums. These projects have added over $200 million of investment into the immediate area. The Project will have direct visibility from the 6th street viaduct and interstates I94/I43.

It will also be at the footsteps of any new development that occurs in the Reed Street Yards. UWM has indicated they have strong interest in expanding their School of Freshwater Sciences to the Reed Street Yards by developing an iconic education and research facility. The Project has secured surface parking directly across the street from the Project.

University of Wisconsin Milwaukee: University of Wisconsin Milwaukee’s School of Fresh Water Sciences, a world leader in water research, will be expanding operations into the Project. UWM will be participating in this Project in a big way - adding staff, spinning off researchers to form new water related companies, and providing high-end researchers to further the bridge between academia and real world situations. UWM anticipates using this Project as an incubator for the new facility to be built on the Reed Street Yards.

The presence of UWM’s highly acclaimed researchers will be another important draw when attracting out of state water related companies. In addition, UWM anticipates spinning off certain researchers into new companies. These new companies will then take space in the Project and add staff as needed. Job Creation The Project is located at 223 W. Pittsburgh Avenue in Milwaukee, WI. This site contains an existing warehouse building that will be converted into the proposed use of this Project. There are currently no employees at the site. Once construction is complete the site will have over 200 new employees on site. The jobs are being created from companies moving operations to the area from out of state, as well as from existing companies and institutions that are expanding their efforts in the water industry. Many of the companies and researchers in the Project will be forming new companies that will require even more skilled employees. This will further increase employment in the area. Once this project is complete, there will be a demand for more housing and commercial amenities within the immediate area. Tenants Milwaukee Water Council - It pursues its mission to make the Milwaukee Region the world hub for freshwater research, economic development and education. Developed in 2007, the Water Council consists of members from business, academia and government working in collaboration to accomplish the mission and vision. The Milwaukee Water Council has already attracted numerous water related companies to locate in the region as well as helped many local companies expand. For more information go to www.thewatercouncil.com. Badger Meter – An international leader in flow measurement technology, Badger Meter has been the metering supplier of choice for utilities and municipalities since 1905. Today they offer a complete line of integrated metering systems and instrumentation to help communities of all sizes generate revenue, while monitoring their precious resources. The respected Badger product family includes flow meters for every application as well as state of the art automatic meter reading systems using the latest radio frequency, network and satellite technologies. Badger Meter is traded on the NYSE under BMI. For more information go to www.badgermeter.com.

UW -Milwaukee - The UWM School of Freshwater Sciences (SFS) is the only graduate school in the United States dedicated solely to the study of freshwater. SFS is located in Milwaukee, Wisconsin, at the edge of the largest freshwater system on the Earth's surface - the Great Lakes. Established in 2009, SFS expands a tradition of freshwater studies at UWM that began in 1966 with the Center for Great Lakes Studies and continued with the Great Lakes WATER Institute, which has been operating since 1973. Their research and education programs are integrated across four essential themes: freshwater system dynamics; human and ecosystem health; freshwater technology; and freshwater economics, policy, and management. In pursuing these multidisciplinary themes, they work with a wide range of partners within and outside the university. For more information go to www4.uwm.edu/freshwater. UW – Whitewater – The UW-Whitewater College of Business and Economics is committed to providing quality water business education to its students. One example of this is the Integrated Science Business Water Emphasis. UW-Whitewater offers students the opportunity to enroll in a unique major that combines the excitement of science with business management expertise, giving students the skills needed to contribute to Wisconsin's leadership in the business and science of water. For more information go to www.uww.edu/cobe/info/businessofwater.html. AO Smith – A global leader in applying innovative technology and energy efficient solutions to products marketed worldwide. The company is one of the world’s leading manufactures of residential and commercial water heating equipment, offering a comprehensive product line featuring the best known brands in North America and China. In November of 2009, the company entered the global water treatment industry with the creation of a new venture, A.O. Smith (Shanghai) Water Treatment Products Co. ltd. With manufacturing operations in the United States, Canada, Mexico, Mexico, Europe, and China, they have the global reach to serve customers worldwide. AOSmith is traded on the NYSE under AOS. For more information go to www.aosmith.com. Gannett Fleming - Gannett Fleming has evolved from a two-person firm in 1915 to currently employing more than 2,100 highly qualified, dedicated individuals that provide an array of services in the transportation, water/wastewater, facilities, environmental, and information technology disciplines. Their more than 60 offices throughout the U.S. Canada, Mexico, and U.A.E. allow them to provide consulting engineering, planning, and construction management services in every geographical area. Gannett Fleming has completed thousands of assignments in all 50 states and more than 50 countries. For more information go to http://www.gannettfleming.com/. Veolia Water – the water division of Veolia Environnement, is the world leader in water and wastewater services and technological solutions. Its parent company, Veolia Environnement (NYSE: VE and Paris Euronext: VIE), is the worldwide reference in environmental services. With more than 30,000 North American employees and 310,000 employees worldwide in 74 countries, Veolia Environnement recorded annual revenues

of $46 billion in 2010. Visit the company's Web sites at www.veolianorthamerica.com andwww.veoliawaterna.com and www.veoliawaterstna.com. Sloan Valve – Sloan is the world’s leading manufacturer of commercial plumbing systems and has been in operation since 1906. Headquartered in Franklin Park, Illinois, the company is at the forefront of the green building movement and provides sustainable restroom solutions by manufacturing water and energy-efficient products such as flushometers, electronic faucets, sink systems, soap dispensing systems and vitreous china fixtures for commercial, industrial, and institutional markets world wide. For more information go to www.sloanvalve.com . Bright Blue Alliance – Bright Blue Alliance is an executive search firm that assists water-focused companies whose strategic plans are predicated upon securing impactful professionals. These are dynamic contributors who possess significant water industry experience, authentic water business knowledge and influential professional connections. Bright Blue Alliance is Milwaukee-based and is not limited by geography. Their clients are located throughout North America and range from innovative start-ups seeking to build their leadership engines to multinational companies expanding their influence. www.BrightBlueAlliance.com . Pave Drain – For centuries, engineers and architects have known the arch is the strongest shape known to man. The PaveDrain block combines this structural concept with modern-day functionality to become the premier Permeable Articulating Concrete Block/Mat (P-ACB/M) paving surface available today. The PaveDrain permeable paving system solves stormwater management problems. For more information go to www.pavedrain.com . WEDC - The Wisconsin Economic Development Corporation (WEDC) is the state’s lead economic development organization. We are taking bold leadership to better serve more Wisconsin businesses, generate better results on economic development investments and bring more resources together to strengthen and promote Wisconsin’s economy. For more information go to www.wedc.org . Developer The members of HKS Holdings, LLC, Joe Klein, Kyle Strigenz, and Tyler Hawley, have over 30 combined years of real estate experience. The members have developed, owned, and managed over $200 million worth of real estate in the Greater Milwaukee Area. They have also been instrumental in capitalizing over $2 billion of real estate projects throughout the country. Architect Kahler Slater is a creative, interdisciplinary design enterprise of architects, interior designers, communications consultants, researchers, environmental branding specialists and graphic designers working with visionary clients throughout the United States who!

are seeking transformational environments and experiences. Kahler Slater provides design services in the high quality tradition that has been a mainstay of the firm since 1908. The firm has 100 employees with two offices in Wisconsin. Management Company The Project will be professionally managed by Siegel Gallagher, a well respected third party group actively managing first class real estate in the Milwaukee area. Contractor KBS Construction is one the largest general contracting firms in the State. They have worked on many complicated urban projects always coming in on budget / on time. The group’s diverse experience in administration, field operations, accounting, finance and development enables KBS to approach every project with a unique understanding of not only design and construction, but the intricacies of marketing the final product. For further information please see www.kbsconstruction.com Legal Team Bruce Block from Reinhart Boerner Van Deuren will be representing the Milwaukee Water Council throughout the development process. Bruce T. Block has been practicing law since 1979. He is a shareholder and chair of the firm's Real Estate Practice and is also a member of the firm's Board of Directors. He has significant experience in a broad range of real estate matters including land use planning, zoning, eminent domain, historic tax credits, multiple and mixed use ownership structures, tax incremental financing and leasing, construction and design contracts. Bruce is widely recognized in the business community as a knowledgeable and practical lawyer with the ability and relationships to get things done. For more information please see: www.reinhartlaw.com/Pages/default.aspx

Water Council Accelerator Building Vision

Milwaukee Water Research and Business Accelerator Visioning Workshop Executive Summary

Copyright © 2011 Kahler Slater, Inc. All Rights Reserved.

Water Council Vision

•  The following stakeholders have been instrumental in developing the vision of the future Water Council Accelerator Building:

•  Milwaukee Water Council •  Milwaukee Water Council Board •  Badger Meter •  AO Smith •  UW-Milwaukee •  City of Milwaukee •  MMSD •  Siemens •  KBS Construction •  UW-Whitewater •  Kahler Slater •  Greater Milwaukee Committee •  Gannett Fleming •  Veolia •  Reinhardt, Boerner Van Deuren

Copyright © 2011 Kahler Slater, Inc. All Rights Reserved.

Purpose

•  To develop a project vision for the new Milwaukee Water Research and Business Accelerator, in order to encourage innovation and creative interaction and outcomes.

•  To create project drivers that provide focus to achieve the vision and serve as measurements for success.

•  To design ideal experiences in the new space for each of its various users.

•  To define the unique and differentiating elements and image of the new experience and environment.

Copyright © 2011 Kahler Slater, Inc. All Rights Reserved.

Project Vision •  This project will be a global catalyst for

a dynamic and informal exchange of ideas that bring results. It will build on our heritage and play to our strengths, differentiating us as the world’s premiere fresh water hub. It will be a place where global, multi-cultural communities converge and collaborate, disseminating ideas to solve the world’s water problems. Connected to nature, this high tech place will support and drive an entrepreneurial spirit and people, where, with public education as a foundation, science is advanced through research.

Copyright © 2011 Kahler Slater, Inc. All Rights Reserved.

Final Project Drivers:

“This project will be a success when!” 1.  It inspires successful ideas that generate start-ups, IP

(patents) and jobs. 2.  It is sustainably profitable. 3.  It is an entrepreneurial “eco-system” – driving business

development, offering the right support at the right time. It effectively links all stakeholders seamlessly as a Great Lakes community.

4.  It attracts and produces top talent – scientists, students, SFS Premier, water-related organizations.

5.  It is catalytic for future development at the Reed Street Yards – a showpiece, iconic building.

6.  It is recognized globally for world water entrepreneurship, research and transformation.

Location/Aerial

Renderings

Floor Plans

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Reed Street Yards Site Plan