The project would utilize $420,000 from TID #34 and construct a new Riverwalk section and dockwall.  The 80-foot section is comprised of two properties, and both owners, General Capital and Hoffman, have provided the city with appropriate easements to allow for the new Milwaukee RiverWalk segment. Further, a draft agreement with the Historic Third Ward Association was drawn up to handle maintenance of this section.  If approved the construction would start in April to be finished in August.

The project prompted questions and concerns from committee regarding the apparent change in city policy for this project.  Normally, the local property owner would fund 30% of a riverwalk segment’s construction, whereas in this case the city was planning to 100% fund the construction of the riverwalk segment.   Alderman Murphy asked “Why are we changing our practice?”  Remington answered that “we [the city] don’t want to wait for that development to take place.”  She also explained that there will be no direct connection to the property from the riverwalk, indicating that the adjacent property will received no direct benefit.  Alderman Witkowiak wondered if the city could assess the property owners much like the city does with sidewalks, and stated that this action would be “kinda sorta precedent setting.”  Alderman Bauman, explained that “I support this project,” but pushed to hold the project to work out details regarding a possible assessment or the possibility of requiring the property owners to buy the section if they choose in the future to connect to the system.  The file was held, and will be taken up at the next Zoning, Neighborhoods & Development Committee meeting.

1922-38 West Fond du Lac Avenue - Design

A proposal from Nafiz Efe, owner of EFE Building and Remodeling, LLC, to purchase the city owned lots at 1922, 1924-26, and 1932-38 West Fond du Lac Avenue will go before the  January 31st, 2012  Zoning, Neighborhoods & Development Committee.  If the $15,000 purchase is approved, the city lots will be assembled, with an adjoining property, to create an 18,000 square foot development site.  Nafix Efe plans to construct a $3 million three-story mixed-use building on this new site.   The building will include 6,600 square feet of first floor retail space, 16 apartment units, and a 29-space surface parking lot behind the building.

• Land Disposition Report
• Fiscal Impact Statement
• Public Hearing Notice

1601 N. Jackson St. Apartment Proposal

Dermond Property Investments’ request for a change in zoning for the properties 1601 N. Jackson and 522 E. Pleasant St. from Local Business (LB2) to a Detailed Planned Development (DPD) was held at today’s Zoning, Neighborhoods & Development Committee.   The change in zoning is needed to allow a 34-unit apartment building to be developed on the site.  The site’s current zoning would only allow for 12-units to be developed, though the massing and height of the proposal is consistent with the current zoning.

Max Dermond, principal of Dermond Property Investments, explained that each unit in the five-story apartment building would include balconies, underground heated parking, and in-unit washer and dryers.  Additionally, he recognized that residents had brought up a list of concerns including parking, height, architectural style, traffic, and density, but that they were working to alleviate many of these issues.

Alderman Bauman echoed the concerns regarding size saying “as an infill project this is totally out of scale.”  The Project Designer, Joel Agacki of Striegel-Agacki Studio, pointed out that “by right someone could even do something bigger”, and that “there are similar residences within eye-shot of the site”.  Also weighing in on the project, Alderman Murphy added “I’m a little concerned about the size of the building and the number of units.”  A few residents showed up to oppose the project, all echoing the same points “it doesn’t fit”, and it will create parking issues .

Alderman Kovac, who represents the area, explained that “this is certainly a completely unique street”, in that while it has a variety of single family homes and duplexes it is also just on short block away from the Park East redevelopment area.  And that depending on which way one is facing there are vastly different building styles and heights in the near neighborhood.  He summarized saying,  “there’s a mix”, and indicated that despite neighborhood opposition, which he pointed out was primarily about parking, that he believes this project “is right on the border”.

At Alderman Kovac’s sugestion, the request was held to allow for the developer to revise the design to make it more appealing to the neighborhood and the committee.

Proposal Links

• Five-Story Apartment Building Proposed on Jackson Street
• Map
• Description
• Drawings

Reed Street Yards Site Plan

At the December 13th, 2011  meeting of the Zoning, Neighborhoods & Development Committee, a zoning change and a proposed Development Incentive Zone (DIZ) overlay were approved to allow for future development of the Reed Street Yards.   The 17-acre property, located between South 6th Street and South 3rd Street, is being redevelopment into a water research and development park in a collaborative effort between City of Milwaukee, the property owner Peter Mead, and General Capital Group.  With this approval the property’s zoning will be changed from Industrial Heavy to Industrial Mixed to allow for a greater range of development opportunities.  The DIZ includes the public connections to the river, the new street configuration,  accommodates phasing in the development, and allows standards to be applied that are compatible with the context of the area.  Additionally, the change creates a requirement for approximately 70% building frontage to the street, 40-foot easement along the river, the requirement of pedestrian access points generally no more than 500 feet apart, and does allow for some interim surface parking on the lots south of the extended Pittsburgh Avenue.

This was just another step in the process toward redeveloping the Reed Street Yards.  The property recently received approval for a tax-incremental financing district that will fund the construction of public infrastructure, including the $3.6 million extension of Pittsburgh Ave., new water mains, new sewer connections, 2,700 feet of riverwalk, an extension of the Hank Aaron State Trail, 300 feet of dock wall that is in need of being repaired, and site remediation.

These changes will now go before the full Common Council for approval.

To see renderings of the possibilities for this site, click here.

Reed Street Yards Site Plan

At the November 22nd, 2011  meeting of the Zoning, Neighborhoods & Development Committee funds for the construction of new infrastructure within the Reed Street Yards were approved.   The 17-acre property, known as the Reed Street Yards, is located between South 6th Street and South 3rd Street, and has been targeted by the City of Milwaukee and the Water Council as the future center of Milwaukee’s water industry.  The project will be broken into two phases and include the construction of public improvements such as the $3.6 million extension of Pittsburgh Ave., new water mains, new sewer connections, 2,700 feet of Riverwalk, an extension of the Hank Aaron State Trail, 300 feet of dock wall that is in need of being repaired, and site remediation.

The financing for this project comes from TID #75, which was created in 2009 for this very purpose.  The funds to payback the TIF, will be generated through the redevelopment of a 88,000 square foot warehouse at 3rd St. and Pittsburgh Ave.  This building will become the home of the Water Council, and will house research facilities for Badger Meter and A. O. Smith, a $500,000 lab paid for by Badger Meter that will be available for tenants use, space for startup water businesses, a Viola water, energy, and transportation accelerator, UWM’s School of Freshwater Sciences, and a multitude of other entities in the water field.  According to Dean Amhaus, Water Council Executive Director, this combination of public-private partnership, in combination with startup space and the lab will make the this a “one of a kind building, from a global standpoint”.

Wisconsin Ave. facades

At yesterday’s meeting of the Zoning, Neighborhoods & Development Committee  Jackson Street Management LLC won an appeal of the Historic Preservation Commission’s ruling regarding their request to demolish five buildings within the East Side Commercial Historic District to make way for a new Marriott Hotel.  The developers have agreed as part of a compromise put forward by HPC to save and restore the facades along Wisconsin Ave., though they will save none of the facades along Milwaukee St.  As part of yesterday’s approval the committee added an additional condition that no demolition can occur until construction is ready to begin. Alderman Hines explained the importance of this requirement saying “none of us want an empty lot at this location.” A requirement that HPC had requested, to have the new building setback 15 feet from the datum of the McGeoch Building was rejected by the committee.  Douglas Nysse, the architect and a principal at Kahler Slater, explained that within the proposed design if they set the building back it would reduce the number of rooms available, or require a significant additional cost. Despite not accepting the setback requirement, Mark Flaherty, of the development group, spoke about how Alderman Bauman’s suggestions had in fact “made a better project.”

Many community members spoke in support of the project arguing that “we need jobs.”  There were also community members concerned about the project and in particular the way historic preservation was being distorted.  Anna-Marie Opgenorth, Executive Director of Historic Milwaukee Inc., and past contributor to UrbanMilaukee.com, didn’t directly oppose the project but explained that “it does a disservice to the community to pit preservation versus jobs,” because as she pointed out integrating preservation into a project actually creates more jobs than new construction.

“Do I think the balance has been reached at this time, I do,” said Alderman Murphy as he explained his thought process regarding the appeal, but he too was quick to point out that because of the process “in many ways [it is] a better property for Marriott.” Alderman Bauman explained that the developer’s essentially got everything they wanted, because this approval for the most part allows the “demolition of five buildings,” He explained that the process had in fact been fairly quick and went on to explain that “so long as that ordinance is on the books, it is my opinion that every member of the council is obligated to follow it.”  Alderman Bauman and Zielinski voted against the appeal, which passed on a 3 to 2 vote.

We are pleased to see that despite the differing viewpoints and heated debate, the process led to a better project, and at least the Wisconsin Avenue facades will be saved. We have concerns that this will set a precedent which could encourage more demolition, and that disinvestment may be further rewarded in the future.

Corner Perspective

Mercy Housing Lakefront’s $8.5 million Greenwich Park Apartments project received approval at the January 11th, 2011 meeting of the Zoning, Neighborhoods & Development Committee. The apartment building is planned for the corner of N. Farwell Ave. and Thomas St. on Milwaukee’s East Side. When complete the apartment building will be 5-stories tall with 54-units, ranging from studios to 3-bedroom units, and include about 100 parking spots, of which 48 will be available for the general public. The project will seek WHEDA tax credits as part of the financial package and will provide workforce housing, with a goal of attracting residents from US Bank and Columbia St. Mary’s.

Despite Murray Hill and Historic Water Tower Landmark Trust neighborhood groups opposition to the project, to some extent because of the workforce hosing, the project received support from Alderman Kovac and numerous community members.  Alderman Kovac explained that area plan includes increasing density along commercial corridors and increasing the availability of affordable housing on the East Side.  He added that he had been concerned about parking but now believes “I think we have a good parking solution.”  Wrapping up the meeting Alderman Witkowiak spoke about Mercy Housing saying “they’ve become good neighbors in our neighborhood.”

The proposal, including the zoning change and land sale, will now go before the full Common Council on January 19th, 2011.

South Gate

Earlier this week the Zoning, Neighborhoods & Development Committee recommended the approval of a Redevelopment Authority of the City of Milwaukee financing agreement with Milwaukee World Festival, Inc.  Specifically, the agreement authorizes the selling of up to $25 million in RACM revenue bonds to fund a loan that will be used to support Milwaukee World Festival, Inc.’s South End Capital Improvements Project on 22-acres at Henry Maier Festival Park.

The first phase of this project includes the redesign of a significant portion grounds around the South Gate.  The most visible change will be the relocation of the South Gate and Box Office to a site west of the Hoan Bridge.  The first phase will also include the development of a new stage,  food and beverage buildings, restrooms, and viewing decks.  Another significant change will be the redevelopment of the Briggs & Stratton Big Backyard Area, updating it from its mid-1980s design, and opening the area up to the lakefront.  This $17 million first phase of this project will be completed in time for the 2011 Summerfest season.

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.

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.

The Rivianna, at 236 S. Water St., will be made up of three 15-story towers, have up to 186 residential units and 236 hotel rooms.  As had been pointed out at the City Plan Commission meeting theRivianna project no longer includes helipads, or the waterfall feature.  The designed has been further defined since it was last before the committee.  The balconies are now inset into the building, the loading docks are hidden in the bulk of the building, and the Riverwalk will feature an elevator to insure ADA compliance.  It was also indicated that the proposal will still contain some affordable units.  The construction itself will create about 1,000 jobs of which 100% will be union labor, and the project will adhere to standards of M.O.R.E. ordinance.

Alderman Bauman, and residents from the Marine Terminal Lofts, which is located across the river, spoke in opposition to the project, generally due to the building’s height being taller than buildings in the Third Ward.  AldermanBauman stated his opposition saying that “the built environment is very important,” and that in his opinion “this is an example of bad urban planning.

Alderman Witkowiak responded to the concerns of the residents of the Marine Terminal Lofts saying that “most of the people on the south side of the river don’t feel that way.”  He explained that his constituents don’t think it should be consistent on both side, and he added his constituents believe “let’s be a little more creative,” and “let’s be different than they are in the Third Ward.”  Both approvals being requested at this committee meeting regarding theRivianna project were approved and will now go before the full Common Council.

Gorman & Company, and the Northwest Side Community Development Corporation were before the committee seeking an amendment to the Detailed Planned Development known as Villard Square.  The proposed mixed-use building will have space for the new the Villard Avenue Library as well as 47 apartments.  Although the library has yet to sign a lease for the space all intentions are to open the library in the Spring of 2011.

Alderman Witkowiak spoke in strong support of the project saying that “this maybe a model of libraries in the future,” and added “I’m looking forward to seeing this project.”  Paula Kiley, the Director of the Milwaukee Public Library, explained that this mixed-use concept is being explored, and that “other libraries have been identified for similar treatment.”  This file was approved and will now go before the full Common Council.

A Riverwalk Development Agreement with Schlitz RiverCenter LLC was before the committee to layout the terms regarding the redevelopment of the Riverwalk at 1505 North Rivercenter Drive.  The second amendment to the District 22, Beerline B, TIF was also before the committee.  This amendment would expand the boundary to include five additional parcels.  It also would fund 70% of the cost to bring the portion of Riverwalk, at 1505 North Rivercenter Drive, into compliance with the Riverwalk guidelines, and complete additional repairs.  As this section was built in 1998, prior to the guidelines, this agreement will also grant the City of Milwaukee a permanent public access easement.

This amendment also cleared the way for funding if a new section of Riverwalk is constructed at intersection of Brady St. and Water St.  The development would be eligible to receive a grant from the expanded TIF.  It was noted that with this expansion the TIF would still fully recover its costs by 2015, which would be five years prior to the statutory limit.  Both of these were approved and will now go before the full Common Council.

The first file of interest involved the possibility of the Redevelopment Authority of the City of Milwaukee utilizing eminent domain to acquire two properties and convey them to Pete’s Marketplace, Inc. which would expand its facilities and add between 30 and 40 new employees.  Alderman Murphy expressed his concern over the City of Milwaukee taking such an action saying “I’m very reluctant to support the use of eminent domain.”  Despite offers of $275,000 for the vacant lots, at 1443 and 1445-47 S. Muskego Ave., the properties were recently appraised at approximately $15,000, because the owners, the Cetina family, had over the time they’d owned the property been required to demolish the existing buildings on the site due to their conditions.  The Cetina family had attempted to construct a new building for the purpose of opening a restaurant or nightclub, but neighborhood opposition stopped them from obtaining a liquor license.  This file was approved and will now go before the full Common Council.

There was also a communications file reporting about activities related to the City of Milwaukee’s Tax Incremental Financing Districts.  The report predicted that in 2010 the city could close three more districts, unless they are extended, including district 56 which is notably “extremely lucrative,” and five districts appear they could be closed in 2011.  It also showed that districts 20 and 21 are currently under-performing and will need to receive donations.  Finally, it also pointed out that in 2008 there was $1.2 billion in increment which represents 3.7% city’s total equalized value of $32.3 billion.

During this discussion Alderman Bauman seem to argue that city needs to utilize TIF more often and with more projects during this downturn when he asked “what precisely are we doing to prime the pump?”  He brought up New Land Enterprises’ proposed building at N. VanBuren St. and E. Kilbourn Ave. and expressed his concern over the Department of City Development not pushing projects that request TIF funds.   Specifically, he said we have “put a big bucket of cold water on the project behind closed doors,” and added that “if you don’t bring the project forward we can’t have the debate.  James Scherer, of DCD , responded that “my concern with it, was that it had no equity in it at all.”  Alderman Murphy agreed expressing that “if nobody has any skin in the game there is no reason to have them as a partner.”