Jackson Square Apartments

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Corcoran Lofts

Corcoran Lofts

The Coalition for Advancing Transit (C.A.T.) will hold their next meeting on Wednesday, November 18 at 9:00 am at Manpower International Headquarters in Milwaukee. Transit plays a pivotal role in our growth as a vibrant economic region and state, and our success in competing in the global marketplace. C.A.T. advocates for a permanent regional transit authority with a dedicated funding source to improve and enhance our current transit systems and create a dynamic, multimodal network in southeast Wisconsin. Without dedicated funding, existing local transit systems will face severe service reductions in 2010, continue their steep decline and important transportation system improvements will not become a reality. This is our best opportunity to gain dedicated transit funding and regional coordination. Interested in learning more getting engaged in the issue? Contact UEDA at (414)562-9904 or Kristi@… for more information or to RSVP for the meeting.

New Land Enterprises and Wiechman Enterprises were seeking a change in zoning and a loan guarantee by the City of Milwaukee for the Bookends North project.  The project would be located at 700 E. Kilbourn Ave., the former Edwardo’s Pizza location, and includes 224 luxury apartments, 294 parking spots, and 3,000 square feet of retail space.  Tim Gohkman, of New Land Enterprises, explained that this would be the highest quality new apartment building in Milwaukee.

Rocky Marcoux, the Commissioner of the Department of City Development, explained that the benefits of getting involved in the project, included adding new units to the neighborhood, an increase to the tax base, and job creation.  He stated that the “department finds itself recommending something, that we wouldn’t normally be recommending,” again indicating that the City of Milwaukee wouldn’t normally become involved in financing of residential deals, but that the current economic condition suggests some limiting financing might be necessary, and that market research indicates that 600 additional high-end rental units can be absorbed by the market.

Tim Gokhman spoke regarding the occupancy rates of a variety of different apartment quality levels.  Specifically he cited the Jefferson Block Apartments in the Third Ward stating that those are over 90% occupied and another of their comparable projects, City Green, is over 90% occupied as well.  He added that “rarely do you see a high-rise apartment complex built in the city,” and because of the reduced construction costs due to the downturn in the economy this is a rare opportunity to get a project like this built.

The total project cost of $60.2 million would be financed with a HUD guaranteed AFL-CIO pension fund backed loan of $51.7 million that would be serviced by Love Funding, equity investment, and a secondary loan that would require the City of Milwaukee loan guarantee of $3.45 million to be viable.  If the loan guarantee was to be approved New Land Enterprises intends to break ground in January or February, and would expect construction to take 17 to 18 months.

The Zoning, Neighborhoods & Development Committee moved to hold the file to allow for the comptroller to conduct a proper analysis of the potential risk before making a decision.

The Moderne, if approved, would be located at 1141 N. Old World Third St. The high-rise project would include 203 rental units, 14 condominiums, 214 parking spots, and a retail component.  The plan included expanding the Park East TID by $11 million to provide for $9.3 million in loans for the Moderne, $650,000 for the construction of a new park, and $850,000 for administrative costs.  The majority of funding for the project, a $41.4 million loan, would be serviced through Capmark Financial Group, funded with AFL-CIO pension funds, and guaranteed by HUD.  Alderman Murphy pointed out that with a 221(d)4 HUD loan, “you can’t go to a private bank anyway, you have to go to a municipality.”  The discussion revolved around the risk taken on by the City of Milwaukee if the 14 condos were not sell over the course of four years.

Rocky Marcoux, the Commissioner of the Department of City Development, explained that similar rental units in Milwaukee have an occupancy rate of 97 to 98% and that “we believe the current credit crunch necessitates a short term change in policy,” indicating that generally DCD wouldn’t support this type of city financing for residential units, but that on a limited scale during this time in the market it was open to funding a few projects.  He added that “I believe it will jump start the west end of the Park East.”

It came out during the meeting that Phase II of The North End project would likely be seeking some sort of city assistance as well, and that the city believed the three projects, The Moderne, the Bookends, and Phase II of the North End could receive city assistance as multiple market studies indicated a demand of approximately 600 of these type of units in the near downtown area.

Alderman Bauman explained his point of view saying that “this is a highly risky project, everybody understands this,” then added that “this is basically a stimulus project.”  He indicated that if the developer could secure his personal guarantee then he would be open to the project.  Alderman Wade stated “I have some issues with participation,” referring to the RPP levels proposed for the projects.  Alderman Witkowiak stated that “in my case I’m looking for the personal guarantees to be shored up a little bit,” but added that “the benefits of doing this project, far far outweigh the risks.”

The Committee generally indicated that the primary issues revolved around the better defining of the default clause, securing the developer’s personal guarantee, and improving the RPP numbers.  The project was held until by the Committee, until a special meeting immediately prior to the November 3rd Common Council meeting, with the intention that these three main issues could be resolved, and the project could possibly receive approval.

MILWAUKEE, WI – Milwaukee’s Hoan Bridge soon will need to be repaired or replaced. It will be a once-in-a-half-century decision. Which is the best option? What is at stake? What will the impact be? What are the costs? What are the timetables?

The answers to those questions and more will be explored in the next Milwaukee Press Club Newsmaker Luncheon, which will focus on the “The Future of the Hoan Bridge.”

The event will feature a panel discussion, including:

* State Rep. Jeff Stone (R-Greendale).

* Milwaukee County Supervisor Patricia Jursik.

* Pete Beitzel, vice president of the Metropolitan Milwaukee Association of Commerce.

* Eric Reinelt, director of the Port of Milwaukee.

The event will feature a panel of journalist including:

*Kent Wainscott, WISN Channel 12

*Tom Held, Milwaukee Journal Sentinel

The Wisconsin Department of Transportation also has been invited to send a representative to the event.

The event will take place Wednesday, Oct. 28, from 11:45 to 1:30 p.m. at the Newsroom Pub in downtown Milwaukee at 137 E. Wells St.

The Milwaukee Press Club’s Newsmaker Luncheon Series is sponsored by Journal Communications and the Milwaukee Journal Sentinel.

The Milwaukee Press Club presents the Newsmaker Luncheons to shed light on issues of the day. The public is invited to attend the luncheons. The cost to attend is $15 for MPC members, $20 for non-members, $10 for students. Lunch is included. Seating will be limited.  Pre-registration and advance payment is required and may be done online at www.milwaukeepressclub.org. Checks may be mailed to the MPC at PO Box 176, North Prairie, WI  53153-0176. Cancellations will be accepted up to 48 hours in advance for a full refund. Please contact Joette Richards at the Milwaukee Press Club at milwaukeepressclub@gmail.com with any questions; or to pay by credit card, call 262-894-2224.

On October 15th, Saint John’s on the Lake broke ground on “The Expansion,” a new 21-story, $83 million tower along Prospect Avenue.  The tower, a senior apartment complex, will add 88 units to the St. John’s on the Lake complex at a cost of $946,306 each.  The units start at 1,140 square feet, and come with amenities that include an art gallery, bistro, fitness, swimming, and spa pools, and on top of that private terraces are included with every unit.  The building will also include “signature residents” on the top floor.  And the best part, it was planned to all be property tax free!

The existing building will be dwarfed in comparision to the 21-story tower that will consume the old surface parking lot.

While normally the construction of an urban high rise wouldn’t draw resentment from this website, a high rise that was built tax-free seemed a bit odd.  After all, should the state of Wisconsin really grant a property tax exemption for luxury senior living? Before the latest state budget was passed, this facility (like almost all other non-profit hospitals, assisted living facilities, nursing homes, hospice facilities, and dorms) would have been entirely free of any property tax.  Michael Horne calculated exactly what that meant to the bottom line of the City, County, State, MPS, MATC, and MMSD, and it was almost $2 million, annually.

• City of Milwaukee — $671,470
• MPS                     — $684,750
• County                  — $348,600
• MATC                  — $161,020
• MMSD                 — $113,710
• State                      — $ 14,940

Obviously, that money could be used to hire a lot of teachers, police officers, and firefighters.  Not to mention plow snow, pick up garbage, clean parks, and keep libraries open.

St. John's on the Lake "The Expansion" as viewed from Prospect Avenue.

Had a future resident of the St. Johns on the Lake independent living facility simply elected to instead purchase a luxury condo at another high rise, say Kilbourn Tower, instead of The Expansion they would have been paid their fair share of property taxes.

That said, there is certainly good reason to grant exemptions to seniors residing in senior-living facilities.  They likely are on a fixed income and are potentially spending a considerable amount of money on medical care. But where should the line be drawn?  Clearly someone capable of paying an entrance fee starting at $270,000 and monthly fees that start at $3,000 is not living on your traditional fixed income.  They do not need a tax break simply to be able to live their life comfortably.

Thankfully, as part of 2010-2011 state budget that was signed into law by Governor Jim Doyle this summer, a compromise was reached by the Conference Committee that protects the interests of both fixed-income seniors and municipalities.  The Conference Committee narrowed the exemption to the following.

• All units whose fair market value is 130% over the county average equalized value are assessable. In determining the fair market value of each unit the assessor must eliminate the value of the common area.
• A maximum of 30 acres is exempt
• If over 50% of the units are determined to be taxable, all of the common area becomes taxable. If 50% or less are taxable all of the common area is exempt.
• The retirement home must be non-profit and benevolent to qualify for exemption.

In Milwaukee County, that 130% figure would equal a unit with a value of $240,330.63 (fun fact in Waukesha and Ozaukee County it would be right around $410,458).  With an average unit construction cost of $946,306 (which would include all the common area amenities), it’s pretty clear units will be paying property taxes from the minute they’re occupied.

As far as I can tell, problem solved.

From an urbanist’s perspective, it’s good to see more senior living being located in a walkable neighborhood (and correspondingly so in a pedestrian-friendly facility).  The residents will have access to all that the Lower East Side has to offer within walking distance from their apartment, and will be welcome new customers at any of the businesses.  Children and grand children coming to visit will have an easy time getting to the facility by car or bus (MCTS route #30 runs by the front door of the facility).  It’s also nice to see a large surface parking lot being replaced by a building, this will pay dividends by making the neighborhood as a whole more attractive to pedestrians, visitors, and potential residents alike (much as the unfortunately bankrupt Park Lafayette does just a few blocks away).  With the tax issues resolved, this building gets the seal of approval from this urbanist as it could have just as easily been a sprawling greenfield development in Lake Country.

Future taxpayers of St. Johns on the Lake, welcome to the neighborhood!

Urban Milwaukee’s Upcoming Events & Meetings Calendar should help you keep up to date on important events effecting our neighborhoods, the City of Milwaukee, and our region.

October 26, 2009

Community & Economic Development Committee Meeting

October 26, 2009 9:00 am

The Community and Economic Development Committee hears matters relating to community development, block grants, job development, business improvement districts, city public relations, industrial land banks and revenue bonds, emerging business enterprises, recreation, cultural arts and the library system.

The Community and Economic Development Committee meetings start at 9:00 a.m. and are held in the Room 301-B, [...]

Milwaukee County: Committee on Economic and Community Development Meeting

October 26, 2009 9:00 am

The Milwaukee County Economic & Community Development oversees the administration of federal, state and local housing programs in the county, including the Urban Community Development Block Grant Program. Matters pertaining to economic development of Milwaukee County, including the best disposition of county properties, are decided by this Committee. It also makes decisions on the Research [...]

October 27, 2009

Zoning, Neighborhoods & Development Committee Meeting

October 27, 2009 9:00 am

The Zoning, Neighborhoods and Development Committee reviews issues relating to city development, zoning, historic preservation, incremental tax financing, building codes and housing projects.

The Zoning, Neighborhoods and Development Committee meetings start at 9:00 a.m. and are held in the Room 301-B, City Hall, unless otherwise noted.

Milwaukee County: Committee on Parks, Energy and Environment Meeting

October 27, 2009 9:00 am

All matters concerning county parks and parkways are the responsibility of this Committee. Members set policy for the parks department, organized recreation, cultural activities, the University Extension program, the Environmental Services Division of the Department of Public Works and Zoo park services. Members have jurisdiction over matters concerning the conservation of all uses of energy [...]

October 31, 2009

City of Milwaukee 2009 Trick or Treat Hours

October 31, 2009 1:00 pm to 5:00 pm

Boo!!

City of Milwaukee 2009 Trick or Treat will be held from 1:00 – 4:00pm on Saturday, Oct. 31st.

The seventh annual BizTimes Milwaukee Commercial Real Estate & Development Conference, to be held on Nov. 12 at Potawatomi Bingo Casino, will feature a panel discussion with some of the most renowned commercial real estate experts in the nation.

The theme for this year’s conference will be, “What Now?” The conference will examine the latest trends in commercial real estate and development and explore the possibilities for the year ahead. Emphasis in the discussion will be given to successful development strategies and best practices in a recession, including adaptive reuse of properties, effective approaches to gaining access to capital, environmental sustainability and the emergence of aerotropolis development (near airports).

The panelists will share their insights about national statistics and trends and offer their perspectives about the possibilities and the limitations of the Milwaukee market.

The national experts on the panel will include:

Robert Bach, senior vice president and chief economist of Grubb & Ellis Co. Based in Chicago, Bach has 35 years of experience in real estate market research, consulting and city planning. A member of the Conference of Business Economists and the Counselors of Real Estate, Bach authors the company’s national market publications, is a frequent speaker at industry events and is quoted widely in the trade and business press, including The Wall Street Journal, The New York Times, Bloomberg and a wide array of investment and real estate publications. Bach works with Grubb & Ellis researchers in more than 100 markets to ensure that the company’s proprietary data is accurate and the analysis provided to clients is useful and insightful. The Milwaukee Grubb & Ellis affiliate is Apex Commercial in Brookfield.

Rhyne Brown, executive vice president of client development at NAI Global. With a primary office in Newport Beach, Calif., and a regional office in Silver Spring, Md., Brown lead’s NAI Global’s national efforts in member-based business development and in the expansion of major NAI Corporate business accounts. Brown has represented clients in the acquisition or sale of more than $1 billion in real estate over his 35-year real estate career. Brown’s clients have included IBM, The World Bank, First Union Bank, Bank America and PNC Bank. His specialties include investment sales, large-scale corporate developments and strategic facility planning. The Milwaukee NAI Global affiliate is NAI MLG Commercial in Brookfield.

Jack Durburg, executive managing director of the Chicago region for CB Richard Ellis. In addition to leading the company’s Chicago market team, Durburg provides oversight to CBRE’s Minneapolis and Wisconsin markets. Through acquisition and strategic growth, CBRE has been recognized by Crain’s Business Chicago as the No. 1 real estate services firm in leasing, sales and property management in Chicago, with 2008 gross revenues of $165 million. He serves as a real estate advisor to many of Chicago’s largest corporations and institutional owners. CBRE has an office in downtown Milwaukee.

Ross Moore, executive vice president and director of market and economic research at Colliers International Property Consultants Inc. Based in Boston, Mass., Moore is responsible for national market and economic analysis, strategic planning and new product development. Moore is a recognized expert on commercial real estate markets and a frequent speaker at industry conferences, where he provides commentary and analysis on industry trends. His national research reports are among the most respected in the nation. Moore is the current chair of the Urban Land Institute British Columbia District Council. The Milwaukee Colliers affiliate is Colliers Barry.

Maria Sicola, executive managing director and head of research for the Americas at Cushman & Wakefield Inc. in San Francisco. During her tenure leading the company’s research team, Sicola developed an award-winning database platform, Site Solutions, recognized by Bill Gates as a unique application of Microsoft’s Access software. Her consulting work has focused on office market leasing analysis and forecasting. Some of her clients include New York Life, Trizec Properties, RREEF, Beacon Capital, Charles Schwab, Prologis and the LMDC (Lower Manhattan Development Corp.). She is an executive member of the Urban Land Institute. Sicola is a frequent speaker at industry conferences and is regularly quoted in publications such as National Real Estate Investor, Real Estate Forum, The Wall Street Journal and The New York Times, as well as on the web on Bloomberg and Reuters. The Milwaukee affiliate of Cushman & Wakefield Inc. is The Boerke Company Inc.

The BizTimes Milwaukee Commercial Real Estate & Development Conference will take place Thursday, Nov. 12, at Potawatomi Bingo Casino, 1721 W. Canal St., Milwaukee.

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