The streetcar as it meets Broadway in the Third Ward.

The Milwaukee Common Council voted to approved the Milwaukee Streetcar today, moving it forward to Final Engineering. The Common Council will have to approve operating funding as construction draws to a close. The streetcar is expected to begin operating in late 2014.

The project passed on a 10 to 5 vote with Alderman Bohl, Donovan, Davis, Dudzik, and Murphy voting against.

Wisconsin Ave. Facade

Two controversial development projects received key approvals at the January 19th, 2011 meeting of the Common Council.

First, the development team for the $50 million Marriott Hotel project, which will be located near the corner of E. Wisconsin Ave. and N. Milwaukee St., won an appeal of the Historic Preservation Commission’s ruling that would have required a 15 foot setback for the upper floors of the building.  While the facades of some buildings along Wisconsin Ave. will be preserved or restored, this essentially approves the demolition of five buildings located in the East Side Commercial Historic District.  The 200-room hotel being developed by Jackson Street Management LLC. is expected to create 200 permanent jobs. It is being financed through the foreign investment via the federal EB-5 program, and if granted will utilized New Market Tax Credits.

Alderman Kovac discussed how the Historic Preservation Commission actually moved the process along quickly saying it moved “more quickly than your own front porch”.  He also reminded other council members that in 1983 the Common Council unanimously recommended these buildings for protection.

One significant change to the proposal was pushed by Alderman Wade.  He worked out an agreement with Jackson Street Management LLC. to a meet a level of EBE and RPP requirements on the project, following the pattern of the M.O.R.E. ordinance.

The appeal was approved on a vote of 13-2, with Alderman Bauman and Kovac voting against the appeal.

Corner Perspective

Also included in approvals at the January 19th 2011 Common Council meeting was an approval for the land sale and zoning for Greenwich Park Apartments. The $8.5 million apartment building, located near N. Farwell Ave. and Thomas St., will be 5-stories tall with 54-units, ranging from studios to 3-bedroom units, and include approximately 100 parking spots, of which 48 will be available for the general public.  This approval will allow Mercy Housing Lakefront, the project developer, to apply for WHEDA tax credits to assist in funding the project.

With these approvals in place, and likely support from Mayor Barrett, both projects appear to be poised to break ground this year.

Streetcar

At the May 4th, 2010 meeting of the Common Council, Alderman Bauman brought forward an item that would allow the City of Milwaukee to enter into a contract with an expert consultant, Jeffery Boothe, for the purpose of facilitating the next steps of the Milwaukee Streetcar project.  Jeffery Boothe is a principal at Washington, D.C.-based Holland & Knight LLP., a Vice Chair of Reconnecting American, chairs the New Starts Working Group, is an active member of the American Public Transportation Association’s Legislative Committee and Light Rail Task Force, is the Executive Director of the Community Streetcar Coalition, and has a long history of working on transit projects in municipalities across the U.S.

The plan of bringing Jeffery Boothe in, is to facilitate moving the recently announced City of Milwaukee’s Streetcar proposal through the Federal Transportation Administration bureaucracy.  This help is of value because the FTA is unsure of how to handle Milwaukee’s project as it isn’t a typical New Starts Proposal, and his experience working with the FTA could speed up the process.  During the Common Council meeting Alderman Bauman explained that this hire is “simply enabling the city to negotiate the best possible deal with the FTA,” and that this is simply “committing money already budgeted.”  He later went on to add that “this individual will be advocating on our behalf,” and made clear that this contract isn’t about obtaining additional funds it is simply to assist in moving the current proposal forward.  Alderman Kovac added that “it really will help to have someone who knows their way around the hallways of that bureaucracy.”

This proposal was approved on a narrow vote, will now go before Mayor Barrett for approval, and should help move the Milwaukee Streetcar project forward.

Prior to the last Zoning, Neighborhoods & Development Committee meeting HUD had denied the request for the loan guarantee that the development team had been seeking, but the committee moved the project forward and approved the city loan guarantee with the intent to encourage HUD to approve the development team’s appeal.  Last week HUD held a followup meeting with the development team, and members of the Department of City Development to re-evaluate the project.  Speaking about this meeting Alderman Witkowiak said “the developer had an excellent meeting, as I understand, with HUD relative to the loan guarantee package.”  He went on to explain that the developer will be setting up meeting with Comptroller to go over the details of the term sheet.  He added that, “I think at sometime in the future it could exit committee with a 5-0 vote.”

Related Links:

• Video of Common Council action on this file
• Tom Daykin’s article, Council delays vote on Bookends North loan guarantee
• City of Milwaukee File Number 090805

A rendering of The Moderne

The Moderne development received approval for $9.3 millions in loans from the City of Milwaukee that led developer Rick Barrett had been seeking.  At last week’s Zoning, Neighborhood & Development Committee three significant concerns were expressed by committee members, all of which were worked out prior to today’s Common Council meeting.  Committee members felt the levels of Emerging Business Enterprises (EBE) participation and Residential Preferred Preference (RPP) participation were to low and needed increasing.  The levels were raised to 25% and 30% respectively to address the concerns of the council.  Additionally, the developer improved the level of securitization of the personal loan guarantees at the request of the committee.  Finally, the committee had raised concerns over the terms of the default provision in the agreement.  These concerns all appear to of been addressed as it was approved by the Common Council with only Alderman Hines and Alderman Davis voted in opposition.

The proposed $55.2 million 30-story high-rise building would include 203 apartments and 14 condominiums.  It will be located on the edge of the Park East at the corner of N. Old World Third St. and W. Juneau Ave. across the street from the failed Palomar project.

The project’s most vocal opposition was Alderman Davis who argued that “there is no job training, no business development dollars attached” and that without these funds residents of Milwaukee don’t receive enough of benefit.

Alderman Bauman explained that the credit industry essentially locked up for any real estate development, no matter how good a project.  He added that this project has “outstanding architecture and design,” and could be an “iconic building,” but that this development “is a stimulus effort, we have to look at it from that perspective.”  Alderman Kovac threw his support behind the project saying that “extraordinary times, call for extraordinary measures,” and added that “I think the risk has been mitigated as much as possible.”

The proposal now awaits Mayor Barrett’s sign-off, which if received could allow The Moderne to break ground shortly thereafter.

Related Articles:

Moderne loans win full council approval – Journal Sentinel
Milwaukee council approves loans for The Moderne – BizTimes.com
Milwaukee council approves Moderne loan – Daily Reporter

A raise to the snow and ice fee that was proposed to help create a surplus going into next year’s budget was defeated.  During these discussions Alderman Donovan stated that “this is the same old song and dance, increase taxes and fees, and cut services.”  Additionally, he asked for a “plan” to resolve the budgetary issue, but later fought other measures intended to cut costs.  As some of the members in opposition to the raising of the snow and ice fee indicated their opposition revolved around the timing of the raise so it is likely this will be brought up again in late September.

Alderman Donovan offered an amendment in an attempt to exempt the Milwaukee Police Department and Milwaukee Fire Department from the furloughs, despite the majority of both departments already being exempted.  Alderman Kovac explained that as the police and fire departments represent about 60% of the budget and due to the impending budget shortfall that if the Common Council excludes those departments that “then we’re just going to have to cut everything like crazy.”  He also suggest that the union will have to participate in cost cutting measures.  Alderman Donovan’s amendment failed and the furloughs were approved by the Common Council.

File number, 090127, was of particular interest as it proposed utilizing eminent domain for the purpose of acquiring private property, owned by the Cetina family, to convey the property to Pete’s Fruit Market for economic development.  Alderman Bauman spoke at length and took issue with the character attacks that some have take against Alderman Witkowikak regarding this issue, and indicated these attacks have only strengthened his belief this would be an appropriate us of eminent domain.  Alderman Bauman added that at RACM “a very strong record was presented” arguing for the use of eminent domain and that “there is no question this is blighted property.”  It was pointed out that despite claims that the Cetina family had proposed opening a restaurant in 2006 the plan presented did not include a kitchen.  Alderman Witkowiak later added that “it was presented as a full blown nightclub.”   He indicated that the Cetina family will be bring forth a new plan soon which he has yet to see, but as he said “in the interest of being fair, I’m going to ask this be held in council.”  This file was held by the Common Council for one cycle.

Alderman Bauman brought forward a file that would create a Joint Committee on Downtown Streetcar Implementation, with the goal of suggesting routes, suggesting funding options for operating costs and capital costs, and additional advisory options.  He indicated that this committee wouldn’t have any approval authority but would give the Common Council information when the time comes to vote on the proposed streetcar plans.  He added in regards to the future streetcar plans that “we may vote in the negative, and we may send the money to Saint Louis,” essentially saying a vote against the streetcar will in the long run send federal funding away from Milwaukee.  Alderman Witkowiak added that “we need to support this file, the rest of the major cities in the United States are passing us by, as far as transportation options go.”  The file was adopted on a 12 to 2 with both Alderman Donovoan and Dudzik voting in opposition.

The organizing and obtaining of funds to complete the street is a significant challenge, but the concept itself is truly very simple.  Add street trees, bike lanes, and planters, remove a travel lane or two, update some lighting fixtures, and shake vigorously.  These ingredients when mixed together change the physical environment from an automobile freeway, that is hostile towards the pedestrian, to one that is not just conducive to people, but welcoming to people, be it for walking, biking, shopping, or siting at a cafe.

Unfortunately, the idea may seem radical to traffic engineers who’s only concern is how fast can the traffic flow, or to politicians afraid to go to bat over funding, but for those who are actively working on creating a better urban environment that would support local business, it makes complete sense.  Hopefully this idea can come in number one where it matters, within the Department of Public Works, the Wisconsin DOT, and the Milwaukee Common Council.

As the debate began Alderman Witkowski offered an amendment to change the prevailing wage standard to a living wage standard.  This amendment was strongly debated from both sides of the issue.  Most colorfully Alderman Donovan argued his support of the amendment stating “none of us has a crystal ball” and he indicated the city should proceed with the more cautious method as proposed in the amendment.  Alderman Witkowski reiterated his concerns stating that “we are talking about risking permanent jobs, and development,” and later added that “I don’t want to chance this stopping development in any way.”  Common Council President Hines argued that “it will adversely impact African Americans,” and that “I just don’t think we can take the risk.”  Alderman Bohl spelled out the situation stating “to be honest with you, I think we have a lot of exaggeration coming from all sides” and that “we’re arguing crumbs.”  He explained that generally speaking a development project already pays 80% of their staff prevailing wages and that only a few TIF projects be effected by these rules.  That said Alderman Bohl still questioned, “can we as a city afford to subsidize private development?”  This amendment failed on a vote of seven to eight.

There was an additional amendment, brought forward by Alderman Murphy following City Comptroller Wally Morics suggestion that this ordinance include a reporting mechanism to track the costs and benefits going forward.  This amendment passed unanimously.

Common Council President Hines made a last effort to stop the ordinance saying “again there are too many unanswered questions” and that “good intentions, unfortunately isn’t good enough.”  After this last appeal, Alderman Hamilton thanked numerous members of the committee and Alderwoman Coggs gave a long summation urging support of the ordinance.  Wrapping up the long discussion, Alderman Wade stated that “I’m prepared to win or looe, because this is a fight worth fighting” and that “we need to grow our middle class.”  This ordinance passed on a eight to seven vote and will now go before the mayor for signing.

At first the sponsors of the legislation were surprised and took the motion as a delaying tactic.  They argued that the process had been fully transparent and didn’t require any further delay.  Alderman Hamilton stated that “I think the public has been engaged and involved in the creation of this ordinance.”  During the discussion Alderman Kovac piped in saying “I believe in process, I campaigned on process”, but he then indicated he didn’t believe sending it back to committee would change anything.  In fact he said “the controversy today will be the same in 21 days.”  Alderman Davis fired away at the implication that not enough questions had been asked or that there wasn’t enough transparency to the process contending that “I made a point to schedule a special meeting to achieve transparency.”

Initial supporters of the motion argued more questions needed to be asked and that it would be appropriate to send it back to the Finance & Personnel Committee.  Specifically, Alderman Witkowski supported the motion in an attempt to gather more information saying “I do support sending this back to committee, this was a constantly evolving piece of legislation.”  In an attempt to bring a bit of levity to the debate Alderman Bohl joked “I’m feeling a Rodney King moment, why can’t we just all get along here?” Then he defended Alderman Murphy’s motives and attempted to call the question.  Oddly on this specific motion the ability to call the question isn’t an allowed so the debate continued.  Alderman Murphy responded to the criticisms by stating “I do feel I was attacked unfairly” and he again attempted to clarify his position stating that “the fact is somebody, literally two minutes before the meeting handing you the fiscal note.  That’s not how we conduct business.”

It was evident that the Alderman Murphy’s message got through to the sponsors when Alderwoman Coggs supported Alderman Murphy’s motion saying that “I don’t want to see it tainted in any way, because of issues of transparency.”  In the end all of the sponsors, with the exception of Alderman Davis, agreed to let it be sent back to Finance & Personnel Committee to insure it was given a full and complete hearing.

At the most recent Judiciary & Legislation Committee there was a long discussion regarding this resolution that covered topics such as available space, the catalytic impact, transit, housing and the tax status of UWM. During this meeting Alderman Bohl was added as a sponsor and he spoke at length regarding the topic. He expressed to the committee that “I think UWM missed the ball on this one” and referred to this plan by UWM as “UW-W”. During this meeting it was also mention that Mayor Barrett is in strong support of UWM’s expansion within downtown Milwaukee and has in fact put a request for funds into President Obama’s proposed stimulus plan. Alderman Bauman explained that he felt UWM expanding in Wauwatosa was “basically forcing people to buy automobiles” and recognized the value of college students when he went on to say that “believe me we could use a 700 student dormitory sitting on Wisconsin Ave”. The only member of the Common Council to vote against the measure was Alderman Donovan apparently over some concerns about adding additional non-taxable land to the city. The measure was passed by the full Common Council.

There was some debate concerning the purchase of Black Holocaust Museum’s building due to concerns as to whether or not the city was going to be operating the museum.  Common Council President Hines specifically stated that this was a “bricks and mortar” purchase.  Further discussion indicated the goal of the purchase was to allow the Redevelopment Authority of the City of Milwaukee to control the property and utilize it in the redevelopment of Bronzeville.  After the intent of the outlay was made clear, the item was approved.

Another item of note concerned We Energies’ agreement to sell its water system assets to the City of Mequon.  The agreement required the City of Milwaukee’s consent to approve the contract because it is the water provider between the entities.  Alderman Bauman argued that “everybody else is benefiting from this transaction and our tax payers should see some sort of benefit as well.”  He added that at the very least the City of Milwaukee has a role to play in this deal and that because it has taken city time and resource a $15,000 fee should be applied to the deal.  Alderman Davis weighed in saying the potential of harming the City of Milwaukee’s relationship with We Energies over $15,000 “is not worth it.  This item was passed without the $15,000 fee.

Mayor Barrett’s budget had originally attempted to cut crews on all nine Milwaukee Fire Department ladder companies, but through committee action this had been reduced to only cutting crews on one ladder company.  Mayor Barrett had vetoed this amendment but the Common Council acted again by voting 13 to 1 to override this veto which retained five member crews on eight ladder companies.

The Common Council also sustained Mayor Barrett’s veto of Amendment 2B which called for an across the board 1% cut to operational budgets.  A substitute amendment was brought forward that proposed this same 1% operational cost cut but only to five city agencies.  Alderman Bohl expressed that this once again showed that departmental budgets can be cut deeper than department heads admit because otherwise this compromise wouldn’t of been offered by the Mayor.  This substitute was approved by the Common Council.

A similar back and forth took place between Alderman Bohl and Alderman Murphy regarding the budget process and the compromises that are been made occurred during the discussion of a substitute for Amendment 40.  The substitute, another compromise made with the Mayor, would replace four battalion chiefs with three fire captain incident safety officers.  Alderman Murphy argued that “the budget process, is a give and take process,” indicating that it should be expected to see partial reductions made in response to larger reduction requests.  The substitute was approved by the Common Council.

The Common Council also denied MMAC’s challenge to 9 to 5′s sick leave legislation.  Despite the denial the quick action taken by the Common Council will actually allowed for the MMAC to move this challenge forward into the court system.

The other item of note was the approval to study the privatization of the Milwaukee Water Works which if it were to occur would help fund an endowment to pay for other city services.  Comptroller Morics recently proposed this idea due to his belief that coming budgets will see significant shortfalls.  At a recent Steering & Rules Committee Meeting he referred to the proposal as our “last bullet,” indicating that he believed the city was out of options.  The Common Council made it clear they weren’t approving of privatizing just that this was something they had to investigate.  This item was approved by the Common Council.