Bob Donovan and the Milwaukee Streetcar

Alderman Bob Donovan is becoming a specialist in anti-streetcar press conferences. This time he held the press conference at a bar in his district instead of City Hall, and this time (too bad for those of us who like street theater) Alderman Bob Bauman chose not to attend. Bauman’s absence didn’t stop Donovan from referencing his own blow-up last week. In case any of you thought Donovan looked outflanked last week, he now claims that when he slammed his fist on the podium during the prior press conference Bauman soiled his pants (video).

I stand by my past prediction that Donovan will continue to create press releases and press conferences on the streetcar. It’s pretty apparent why Donovan has chosen this time to make it a big issue: Mayor Barrett is running for Governor, and Donovan doesn’t mind undercutting the mayor’s campaign. Win or lose for Barrett, Donovan is likely to be a lot less interested in this issue come June 6th.

A New Basketball Arena?

Yes, they’ve tried before, but it looks there will be renewed effort to create a new arena for the Milwaukee Bucks, and this attempt– which is beginning to feel like a full court press — isn’t likely to be abandoned.  The announcement of naming rights for what will be known as the BMO Harris Bradley Center is the linchpin to the latest strategy. The MMAC, under the leadership of Tim Sheehy, helped broker a six-year naming rights deal with the new bank in town as well as handful of other sponsorships with other local companies. The $18 million in sponsorships (or $3 million a year) are to serve as a bridge to a new arena. They also send a signal that some of Milwaukee’s businesses (whose support has not been all that clear in the past) do see it as beneficial to have an NBA team in town.

It’s encouraging that the Uihleins have reversed their stance on the naming rights for the facility after publicly opposing such a deal in 2008. The worst thing that could happen to the facility would be losing its primary tenant — and Wisconsin’s only NBA franchise — to another city. BMO Harris will get increased brand name recognition, the Bucks will get a new revenue stream, and many will still call the building the Bradley Center. It’s a win for everyone.

Of interest from the fact sheet the Bucks released with the announcement is that the Bradley Center “draws 30% of its attendees from outside the four-county metro area of Milwaukee, Ozaukee, Washington and Waukesha County,” which of course raises the issue of which taxpayers (if any) might be enlisted to help pay for a new arena — a very dicey subject. Also of interest in the NBA arena space race, the Golden State Warriors are inching closer to moving across the bay to San Francisco.

Jimmy Goldstein Could Buy the Milwaukee Bucks

Multi-millionaire and NBA superfan Jimmy Goldstein seems like a candidate to buy the Milwaukee Bucks, albeit an outside one. The Los Angeles area resident holds courtside season tickets to both the Lakers and Clippers currently, but grew up in the Milwaukee area (his father owned Zahn’s department store in Racine for many years). He reveals in his GQ column that NBA Commissioner David Stern reached out to him previously about buying the Milwaukee Bucks, but the deal never came together because of Michael Jordan’s interest.

Current owner Herb Kohl is likely to sell the team in the not-too-distant future, and whether it comes before, after, or as part of a new arena being built is likely to be a crucial factor in retaining the Milwaukee franchise. A sale before a new arena would be the worst scenario: I think a Sonicsgate situation would leave a bitter taste in a lot of Milwaukeeans mouths.

Goldstein is well-known among the NBA blogosphere for crisscrossing the country during the playoffs to watch as many games as possible. He claims to have just come off a stretch where he attended 24 games in 23 days. He also owns a fairly well-known house that has appeared in a number of films. If you’re looking to get more acquainted with some interior shots of the iconic home, head to Lebowski Fest at Cathedral Square on June 22nd.

If he were to buy the team, Jimmy Goldstein would be the second Los Angeles-based owner of a Milwaukee sports team, following in the footsteps of Brewers owner Mark Attanasio. Including County Executive Chris Abele in a Goldstein ownership group would add a level of intrigue: which of the two long-time NBA courtside ticket holders, Goldstein or Abele, would get the best seats in the house?

Downtown Trolley is Back

The Milwaukee Trolley Loop returns May 30th.  It will operate Wednesdays through Saturdays from 11:00 a.m. until 9 p.m. The service will provide rides for $1. Service runs through September 8th.

The route remains unchanged from last year, but if anyone could draw it from memory I would be surprised. The trolley is undoubtedly a positive for downtown Milwaukee, but there’s no doubt a fixed guideway system like a streetcar would be an upgrade.

East Library Land Sale and UWM Zoning Change Approved by Common Council

The East Library redevelopment project continues to move forward. We reported earlier this week that up-zoning for the site had been recommended for approval by the City Plan Commission, and now the full City of Milwaukee Common Council has approved the land sale necessary for the deal. The Standard at East Library is set to open in the spring of 2014. More details on the project can be found on our East Library category page.

In addition, as referenced in last week’s Eyes on Milwaukee, UW-Milwaukee’s request for a zoning change for the former St. Mary’s Hospital was approved. At this point the university is not publicly planning a large expansion of student housing to the property. I failed to clarify last week that the action was taken up by the Zoning, Neighborhoods, and Development Committee, not the full Common Council, but this the full council gave its approval Tuesday.  It’s now awaiting the signature of the Mayor.

Example of the minimums allowed by LB2 compared to LB3

Residents are still a little restive about it, but the East Side’s buildings are likely to get a little higher, to judge by the results of today’s City Plan Commission meeting.

The Commission approved up-zoning (higher height limits) for the project to replace the East Library, while a broader proposal for a similar up-zoning along the rest of along E. North Ave was held. This approval keeps The Standard at East Library on track for a spring 2014 opening. Meanwhile it remains to be seen if up-zoning for all of E. North Avenue  can be completed before a rumored development for the former Prospect Mall comes forward. Besides raising minimum and maximum heights, the zoning changes also permit greater density, while requiring designs more conducive to walkable neighborhoods.

Two years in the making, the proposed up-zoning is part of the continuing evolution of E. North Ave from the river to Prospect Ave, and springs from the same effort that created the East Side Architectural Review Board. The two zoning changes were introduced as separate items because of the time sensitive nature of the library redevelopment, despite the fact that it is located on North Avenue.

East North Avenue

Proposed Area to Zone LB3

First up before the commission was the proposal to up-zone E. North Ave’s zoning classification from Local Business 2 (LB2) to Local Business 3 (LB3), which would  raise the minimum heights for buildings to 30 feet (up from 18), and the maximum heights to 75 feet (up from 60).

Department of City Development (DCD) planner Greg Patin explained the rational behind the changes, noting the city had previously reformed its zoning codes, but had not created enough options for districts. The Department believes that some recent developments have not fit in as well as they could have, and that these code changes would rectify the situation. Patin noted that recent developments in the area, such as UWM’s residence halls and Columbia St. Mary’s Hospital, are excluded from the boundaries of the proposed change from LB2 to LB3 as they already have special zoning accommodations beyond what LB2 allows.

He noted that the LB3 zoning district is a completely new zoning classification created by the city that allows for greater minimum and maximum heights as well as increased density. It was designed to create additional options for zoning districts, and to reduce the number of planned developments (projects which require special zoning exemptions on a site-by-site basis). This new zoning designation also requires a greater street frontage and taller ground level windows. For those thirsty for more details, DCD has produced a presentation in PDF format that further explains the new LB3 designation.

Jim Plaisted, Executive Director of the East Side Business Improvement District, spoke in favor of the changes, but two neighbors were opposed.

Cindy Kluge, speaking on behalf of the Greenwich Village Neighborhood Assocation, asked for the matter to be postponed until the area’s neighborhood associations have more time to review the proposal. Her association is in favor of zoning change around North Avenue, but would like the heights to taper off as they get away from North Ave.

Pam Frautschi, President of the East Side Milwaukee Community Council, said her group basically supports the position of the Greenwich Village Neighborhood Association. She stated that the density allowed is one aspect of the zoning change the East Side Milwaukee Community Council opposes.

Alderman Nik Kovac spoke at length on the proposed changes. He noted it has been a two year process to get this point, and that this isn’t something that has “dropped out of left field.” He stated that the entire portion of the proposal south of Thomas Ave is non-controversial, and that city officials had worked with neighborhood groups on these changes. As an example, Kovac noted that everything on the west side of Murray Ave, north of Thomas Ave, is to be left as LB2. He also stated that he felt that for Murray Ave 75 feet is probably too high, but also that 18 feet (the existing minimum) is too low. He noted that there is some urgency to moving this forward as a Prospect Mall proposal is in the works.

There was some discussion of a compromise to remove the up-zoning north of Thomas Ave, which Kluge said she generally supported, but added that her other concern is “public process,” that the neighborhood association needed more time to review the proposed changes.

Ultimately, the up-zoning was held until the next meeting of the commission on a 3 to 2 vote.

East Library

The Standard at East Library

The East Libary zoning change, from LB2 to the new LB3, was brought before the Plan Commission today in order to allow the East Library RFP winners, HSI Properties and WiRED Properties, to move forward with their plan to gain U.S. Department of Housing and Urban Development (HUD) financing approval.

Unlike the broader North Ave up-zoning, no one spoke against the changes for the East Library site. Alderman Kovac explained that although there isn’t universal support for the design plans for the new mixed-use library, there is a lot of support, and this zoning change is needed to move the project forward.

The City Plan Commission unanimously recommended for approval the change from LB2 to LB3 for the East Library site.

The East Libary will be the first property in the site to be zoned LB3 if confirmed by the Common Council.

For past coverage of the redevelopment of the East Library, see our East Library category page.

Talgo Open House

The elegant Talgo trainsets ordered by the Doyle administration for the Amtrak Hiawatha are nearly complete. But will they ever be used?

Alas, Sunday is quite possibly the only day you will ever get to go inside them. Tours, children’s activities, and refreshments will be available at the Talgo assembly facility from noon until 3 p.m. on Sunday, May 20th. The facility is located in the Century City redevelopment area at 3533 North 27th Street. Off-site parking is available, with MCTS Routes 27 and 80 getting you there as well.

If you can’t make it Sunday, the trainsets are also currently visible from south side of the facility on W. Townsend Avenue between 27th and the railroad bridge.

Strategically ordered before federal high speed rail grants were announced, the purchase contract pushed Wisconsin to the top of the list and netted Wisconsin $810 million to extend the Hiawatha to Madison and buy more trainsets. Governor Walker’s campaign against the poorly marketed train resulted in the federal government re-appropriating the funds to other states.

The trainsets face an uncertain future following the State Legislature’s Joint Finance Committee decision to cancel funding for a permanent maintenance base for the equipment. It remains unclear if the state will put the trainsets into service utilizing the temporary maintenance base (the assembly facility), or mothball the trainsets once they’re complete (potentially violating their contract with Talgo).

Hopefully someday the trainsets will be in use in Wisconsin. Until then I’ll just shake my head at the insane series of decisions taken merely to score political points. I do look forward to seeing our former high-speed rail funds at work when I take the Amtrak Lincoln Service, a corridor being upgraded to higher speed rail, to St. Louis this summer.

Downtown Block Party

The parking lot between 4th and 5th streets on the south side of Wisconsin Ave will finally see some activity this summer thanks to a handful of groups working to change the way Wisconsin Avenue is perceived (starting with rebranding it the WAM District). First up is a tailgate party hosted by Pabst Theater and NEWaukee on May 25th that includes the live broadcast of a Milwaukee Brewers game. The Downtown Baseball Block Party has live music starting at 6:30, a live broadcast by the FSN broadcasting team, food trucks for those that don’t bring their own grills, and a cash bar. The fun will go until midnight. There is a Facebook event with more information.

Another event is planned for June 14th in conjunction the Milwaukee IndyFest race. The Milwaukee IndyFest Street Party will kick off the three-day event that culminates in an internationally televised IndyCar race at the Milwaukee Mile. The kickoff event will include a car show, House of Harley-Davidson parade, driver appearances, food trucks, and beer stations.

While I would have rather seen the proposed Catalyst development by the Ghazi Company occupying this parking lot, I’m thrilled to see groups programming the space for more than just parking. NEWaukee and the Pabst Theater have a history of drawing thousands of people to their events (Young Professional Week, Fish Fry and a Flick). Hopefully this is just the start of good things to come for Wisconsin Avenue.

Bike Use on Buses Doubles

A press release by the Milwaukee County Transit System shows bike use is growing by leaps and bounds. County buses transported 95,000 bicycles in all of 2011, but through April 30th of this year, over 29,000 bicycles were transported, more than double last year’s numbers through the same period (12,695). Whether it’s this year’s mild weather or increased awareness that is driving the increased usage, it’s encouraging to see ever more cyclists take advantage of the racks.

For more information on how to put utilize the racks, see the MCTS webpage and video Bikes on Buses.

Explore the Historic Concordia Neighborhood with Historic Milwaukee, Inc. on Saturday

Historic Milwaukee’s annual Spaces & Traces event features the Historic Concordia neighborhood this Saturday from 9 a.m. to 5 p.m., with tours of 13 historically prominent residences and businesses in the near west side neighborhood. Tickets to the event are $25 , and $20 for HMI members and there’s a five dollar price increase if you wait till the the day of the event. Also included are a lecture by John Gurda about the architectural and cultural history of the neighborhood (at 11:00 a.m.), one by Alderman Bauman, a long-time neighborhood resident, on living in and representing the neighborhood (1 p.m.), and a special Miller Brewery tour (4 p.m.) More information is available on the Historic Milwaukee website.

HMI will also present Alderman Bob Bauman with the 31st annual Spaces & Traces Historic Preservation Award tonight at Fred’s Pub.

Kudos to HMI for their efforts in putting on the annual Spaces & Traces event, which allows for an up close look at Milwaukee’s history.

UWM Gains Zoning Approval for Columbia Hospital Redevelopment

The University of Wisconsin-Milwaukee was granted a zoning change for the former Columbia Hospital that will allow the school to expand into the complex of buildings now known as the Northwest Quadrant (file #101472). The university acquired the complex in December 2010.  This change allows UWM to fully use the former hospital as part of the university campus. Various pieces of the complex are already in service given that they comply with existing zoning regulations (parking garage, coffee shop, and offices).

As part of the zoning change, UWM Chancellor Michael Lovell voluntarily agreed to cap the number of students living in the former Columbia College of Nursing building at 90 Honors students (UWM leased a portion of the building for student housing in the past). Should the university wish to expand the number of students living in the Honors College facility to 200 in the next ten years, the university will first seek a public hearing and advisory ruling by an appropriate City body. Prior to the end of the ten year period UWM will consult with the Mariner Neighborhood Association or any successor, and the appropriate City body to determine if the commitment should be extended. We have re-posted the statement from Chancellor Lovell for your convenience.

The only vote against the zoning change was cast by Alderman Bauman. Bauman wants to see UWM place student residences throughout the city instead of concentrating them on the Upper East Side campus.

I believe the growth of UWM as a top-tier university is good for the city as well as the school, and am happy to see a resolution was found to neighborhood concerns about the university’s expansion. If only this land could have been used for an engineering school, as opposed to a new campus being created in western Wauwatosa.

The Moderne Meeting Hiring Requirements

As part of the city financing package that went towards The Moderne, developer Rick Barrett (Barrett Visionary Development), general contractor J.H. Findorff & Son, and technical coordinator Prism Technical are required to meet certain Emerging Business Enterprise (EBE) and Residence Preference Program (RPP) requirements. To-date, The Moderne has complied with both. Through March 31st, EBE participants received 26 percent of the adjusted construction budget totaling approximately $4.5 million. Through February 29th, RPP participants logged 41,000 hours or 30.4 percent of on-site construction hours. Minimum requirements were 25 and 30 percent respectively.

This information was presented before the Zoning, Neighborhoods, & Development committee. Alderman Michael Murphy noted that “the project is ahead of schedule, under budget, and is a beautiful building.” Committee Chair Alderman Jim Bohl added “this has been a very big success, and we will continue to build off of it.”

More information is available in the report presented to the committee, or on the file in Legistar (#120016).

Kids Ride Free on Amtrak Hiawatha This Summer

Children ages 2 to 15 can ride free on the Amtrak Hiawatha on Fridays, Saturdays, and Sundays between June 1st and August 26th. Up to two children can receive free tickets when accompanied by a paid full fare adult. To claim the offer use discount code V813.

I’ve written a column in the past asking for more creative pricing for the Hiawatha (Amtrak Should Innovate with Hiawatha Service Pricing). This is a step in the right direction.

Openings and Closings

If you’re looking for the Openings and Closings section of Eyes on Milwaukee, you will need to hold off for a few days. We’re spinning the section off into its own piece to debut in the next week.

1601 N. Jackson St. Approved Design

Back for a second time, Dermond Property Investments’ request for a change in zoning for the properties 1601 N. Jackson and 522 E. Pleasant, the former Joey’s Restaurant location, from Local Business (LB2) to a Detailed Planned Development (DPD) was once again in front of the Zoning, Neighborhoods & Development Committee.  In an attempt to address concerns raised by citizens and council members at previous meetings, the developer made numerous changes to the design, which included an increase in the number of rental units in the proposal, prompting the city process of approvals to started over.

1601 N. Jackson St. Original Design

The design changes addressed issues such as setbacks, massing, and parking.  To accomplish this each apartment unit became 10% smaller, and the building was set back 18 feet on the north side, and five feet on the east side.  Project Designer, Joel Agacki of Striegel-Agacki Studio, explained that they had “really made an effort to scale the building a bit better,” and soften the building with landscape around the entire perimeter, facade articulation, the use of poured cement panel, and setting the fifth floor back three feet to make the building appear as a 4-story building.  The  five-story building will have 36 apartments, up from 34-units, 38 parking spaces, 36 spaces for resident to rent at $110 per month, and two spaces for guest use.  Speaking about the neighborhood concerns over the potential of new traffic in the neighborhood, Todd Ferris, from Dermond Property Investments, explained that the new apartment building (according to the ITE manual) would generate substantially less traffic during the PM rush hour than the former restaurant did while it was in operation.

Alderman Kovac explained that his support for the project wasn’t, “because I was steam rolled”, referring to an earlier debate on the proposed 27th Street project, but that the developer had worked to make it an acceptable project.  Alderman Bauman followed up adding that, “I have to say, the developer and the architect were most accommodating… and frankly it was quite refreshing”.

The project was approved by the committee, and will now go before the full Common Council.

East Library

At the March 27th, 2012 meeting of the Public Works Committee, the committee briefly took up the purchase agreement between the City of Milwaukee and HSI Properties, LLC, which had it been approved, would have been the next step in the city’s effort redevelop the  East Library site.  HSI Properties, LLC ‘s intends to develop a $15-million mixed-use building, to be known as The Standard at East Library, which when developed will include a 16,000 SF condominium unit for the library, 92 market-rate apartments,  118 underground parking spaces, 40 street-level parking spaces reserved for library use, and approximately 2,500 SF of retail space.

During the meeting Paula Kiley, the Milwaukee Public Library Director, began presenting, but indicated that full approval was not going to be requested as the parties hadn’t finalize the purchase agreement.  Additionally, a request was to made to hold a special meeting of the Public Works Committee to take up this matter, but Alderman Bauman expressed concerns over voting on a significant project at a meeting that would not be televised.  The committee acted quickly to hold the the proposed land sale agreement for one cycle to allow the agreement to be finalized, and taken up at a regular meeting of the committee.

1601 N. Jackson St. Updated Rendering

Dermond Property Investments’ request for a change in zoning for the properties 1601 N. Jackson and 522 E. Pleasant, the former Joey’s Restaurant location, from Local Business (LB2) to a Detailed Planned Development (DPD) was once again before the City Plan Commission.  The proposal was required to go back before the City Plan Commission, because the number of rental units in the proposal had changed.  The developer now plans to build a five-story 36-unit residential apartment building that will consist of one-bedroom apartments and studios.   In excess of the existing zoning requirement of 18 off-street parking spots the building will include 38 parking spaces, 36 spaces for resident use, and two spaces for guest use.

The project had been held at the Zoning, Neighborhoods & Development Committee to allow for the developer to work with the neighborhood in producing a design more acceptable to residents.  At that meeting, the complaints cited by the neighbors and Alderman on the committee, included that the building didn’t fit with the neighborhood, would negatively impact parking, was set to close to the street, and was too blocky.

In an attempt to address these concerns multiple changes were made to the original design.  Originally, the the building was to be setback two feet on the North side, and not at all along the East side.  The new design sets the building back 18 feet on the North side, and five feet on the East side.  The new design attempts to alleviate the blocky feeling by further articulating the building through projecting the balconies further out, and cutting back on its width.  Further, the new proposal includes an increase in the number of parking spots from 34 to 38.

Despite the changes a handful of residents spoke in opposition to the development.  The primary concerns continued to revolve around the scale and density of the building, and the potential parking issues new residents could creating.

Alderman Kovac, who represents the area, noted that this proposed building’s height is within the current allowed zoning for the site, and that parking concerns aren’t enough for him to oppose a project.  He summarized his position on the project saying, “given the zoning, [and] given the design process we went through, I’m not opposed”.

With one vote in opposition the project was recommended for approval by the commission, and will now go before the Zoning, Neighborhoods & Development Committee.

UWM

Last year, the UWM Student Association successfully lobbied UWM to make approximately 700 parking spots available for free use, by raising fees on all students $15 per semester (note: an additional$5 per semester had to later be added to fully cover the cost).

This year, once again the UWM Student Association is pushing to give students (well not all or even most students, just a select few who drive) 200 more “free” parking spots, by raising student fees on all students another $6.50 a semester.

These efforts to supply “free” parking for the few is contrary to the university’s mission and teaches the wrong lesson to students.

Those that use these free lots will end up driving more, and wasting time as they drive from one free lot to the next trying to find that empty spot.  When you set the price of a inelastic good to zero, a good’s demand inevitably outstretches supply.  A recent UWM Post article tell this very story.  “[One day] I arrived on campus 20 minutes before my class started,” Robinson recalled “I went through four full lots and finally conceded defeat and headed to the Pavilion. I ended up 10 minutes late to my first class even though I was on campus early.”

Students go to college to learn, and not just what is in their books, it is to some extent to learn how to live their lives.  Robinson has certainly experienced first hand the tragedy of the commons, but that isn’t likely what she has learned from this experience.  By not charging students to park, UWM is teaching them that the expectation is that parking is, or should be, free.

The lesson certainly isn’t that no programs should be subsidized through user fees.  But unlike the UPark and UPass programs which benefit non-users, subsidizing on-campus parking takes a limited resource and gives it away to a select few, at the expense of the non-users.  Additionally, “free” parking brings with it negative externalities such as less community involvement (through commuters quickly leaving the campus), more traffic on-campus, higher traffic demands being placed on neighborhood streets, and doesn’t make the highest and best use of a scare resource.

As an urban university, UWM should be teaching students to live in the neighborhood, ride the bus, and become part of the community, not to have everyone else pay so the few can drive.

Eyes on Milwaukee

Welcome to the third installment of Eyes on Milwaukee. This week we take a look at Milwaukee’s sales tax rate compared to other major cities, the Bradley Center’s new transportation option, UWM’s continued insistence on growing parking subsidies, and a whole lot of development news.

The Tax Hell We Might Not Live In

Despite the public sentiment that the taxes are just too high in Wisconsin, it turns out that it’s quite cheap to eat out here when taxes are considered. The Tax Foundation has found that Milwaukee has the second cheapest “meal taxes” of the 50 largest cities in the country when the sales tax and any additional meal taxes are considered (Portland is first, or last depending on your position). Milwaukee weighs in at a combined tax of 5.65%, compared to first and second place Minneapolis and Chicago at 10.775% and 10.75%.

Yet another example of the odd tax distribution in Wisconsin. In a more logical world Milwaukee could leverage a higher sales tax (or even just a meal tax) to fund road repairs and other transportation needs as opposed to relying heavily on the property tax levy. This would do a better job of charging those that drive on local streets frequently, but aren’t residents of the city.

The Bradley Center and Transportation

The Bradley Center is set to unveil BC Easy Ride on April 19th. The program will provide round-trip service to the Miranda Lambert concert taking place on that day from Madison, Elkhorn, and Mukwonago.

Hopefully the service helps attract people to the city that are afraid, concerned or incapable of driving downtown. With any luck they’ll see what a nice place our fair city is and come back for a bit longer next time.

Worst case scenario, the program keeps a few drunk drivers off the road in Milwaukee. Though all bets are off on how they get home from the Park and Ride drop points.

Freeway Followup

Larry Sandler has more on the Lake Parkway extension following last week’s public hearing.

More UWM Parking Subsidies

In another example of mind-boggling policy at UWM, the Student Association is close to a deal for 200 more “free” parking spaces. Instead of sanely metering the spaces, the Student Association will raise the segregated fees of all 30,000+ students by $6.50 a year to pay for 200 students to park everyday.

For those keeping score at home, in the past two years the Student Association has managed to raise the annual cost of attending school by $26.60 on all 30,000+ student to pay for 900 parking spots.

The Moderne Tops Off

In case the cold weather has kept you from looking up recently (you have no excuse given today’s irregularly warm weather), there is a new tower west of the river. The Moderne topped off in the past week at 30 stories and expects to open to residents in September. The development is slated to have 203 apartments and 14 condominiums.

The Point on the River and Karl Kopp’s 106 Seeboth

The Point on the River, formerly First Place on the River before receivership, is very close to selling out with only 7 of the 147 units remaining further dispelling the misguided notion that Milwaukee is littered with hundreds of unsold, high-rise condos.

Next door to The Point on the River, Karl Kopp (of Kopp’s and Elsa’s on the Park fame, as well Arizona and New York restaurants) is finally poised to do something with 106 S. Seeboth. The building is currently an unintentional experiment in urban agriculture with a tree growing through the roof, leaving the new development to likely only retain the south and west facades.

Also of random Karl Kopp interest, he developed a townhouse at 277 Mott Street in Manhattan’s SOHO neighborhood. The Google Maps Streetview images clearly show an LLC as the owner located at 833 N. Jefferson Street – the home of Elsa’s on the Park. What will it take him to develop an infill townhouse at this Milwaukee location on Milwaukee Street?

Development News

The Italian Community Center is moving ahead with Marcus Corp. on a mixed-use development for their massive parking lot in the Historic Third Ward. Given the size of the lot, the development could redefine the size of the neighborhood. Here’s to hoping something positive happens there.

KBS Construction chairman Dennis Klein is looking to buy the city-owned block at the southeast corner of 27th and Wisconsin. Klein is also looking for additional public aid to help construct a 48,700 office building for the Wisconsin Bureau of Milwaukee Child Welfare.

Mary Louise Schumacher took a much more in-depth look at the proposed Potawatomi Hotel in her article “Can a slick Potawatomi hotel fit in with its industrial, kitschy neighbors?”

Rick Wiegand, owner of the Ambassador Hotel, bought the 19-unit apartment building at 2125 W Kilbourn Avenue near 21st Street. Wiegand owns approximately 12 apartment buildings.

The Best Western Inn Towne hotel on West Wisconsin Avenue is still for sale.

Things are moving forward on relocating bus operations from the Downtown Transit Center. We’ve endorsed this idea in the past.

RSC & Associates is back (sort of), looking quite promising this time to actually break ground on their Park East parcel.

There are plans coming together for a residential development project on the Gallun Tannery site.

Apparently some friction is developing between Joel Lee and Irgens Development over the plans for the Washington Square office project. No surprise given that Baker Tilly opted for the US Bank Center.

The Milwaukee Water Council closed on the purchase of 223 W. Pittsburgh Avenue. Renovation work will begin this summer.

Peter Sciortino’s Bakery is plotting an expansion that will require the demolition of an adjacent home.

Brandon Jennings Relocates

At some point Brandon Jennings relocated to the Mandel Group’s Marine Terminal Lofts in the Historic Third Ward from his previous residence in St. Francis. In his latest commercial for Under Armour, Jennings shows off what he did over the All-Star two weekends ago. One can only hope at some point he finds consistency with his jump shot.

Openings and Closings

Fast Foodie, the food truck (well more trailer), will be adding four electric bikes to its arsenal starting this summer.

Odd Duck – A new restaurant is coming to Bay View in the former Future Green space.

Schlitz Park will add a new cafe to the RiverCenter atrium space that will serve breakfast, lunch, and snacks replacing Elliot’s Off-Broadway Deli.

Fanatics Sports Central is closed for maintenance.

Photo of the Week

Late Winter Night on the River at Juneau Avenue by John December

HSI East Side Library Proposal - Rendering 3 Southeast

Following the model of the Villard Square Library redevelopment, The Board of Trustees of the Milwaukee Public Library selected HSI Properties, LLC proposal for a mixed-use building to replace the current East Library.  The project took an important step forward yesterday as an associated land sale, and land vacation were recommend for approval at the City Plan Commission meeting.

The $15 million building, to be known as The Standard at East Library, will have an approximately 16,000 SF condominium unit for the new library, 92 market-rate apartments,  118 underground parking spaces, 40 street level parking spaces reserved for library use, and approximately 2,500 SF of retail space.  The average apartment will range in size between 600 and 700 SF, and will rent for about $1.60 a square foot.

Although, the design was not quite in compliance with the new East Side Architectural Review Board (ARB) design standards, because the library entrance will be off of Cramer St. instead of North Ave., the ARB still approved the overall design and massing contingent on review of building materials, lighting, landscaping and public improvements.

The recommended land sale will now go before the Public Works Committee on March 7, 2012 for approval.

Updates

Mark Ernest, AIA, LEED AP, Architect, Partner at Engberg Anderson, gave an overview of the development and the updates to the design.

Available from the project page on the City of Milwaukee website.

“Revised plans modified the original site layout to accommodate more public space in the center of the building. This change allows access to both public and private parking from two points, while reducing the number of curb cuts from the earlier submission. The west façade was modified to move upper levels away from Thomas Avenue at varied setbacks. The east and south façades have been developed.

These plans were presented to the East Side Architectural Review Board on January 24, 2012 to ensure that the project would conform to the City’s new guidelines for the East North Avenue Business District. The East Side ARB approved the overall design and massing contingent of future review of building materials, lighting, landscaping and public street improvements. Building signage will be handled separately by the East Side ARB. “

Development Schedule

Barring any set backs, the schedule for the redevelopment of the East Library will proceed as listed below. It’s unlikely any of the committees or commissions will hold the project up, but HUD approvals have proven to be a fairly slow process for two high profile developments currently under construction, The Moderne and 1910 on Water.

1. The City Plan Commission will likely take up the file at their February 27th meeting.
2. The Public Works Committee will likely take up the file at their March 7th meeting.
3. The full City of Milwaukee Common Council will likely take up the issue at their March 20th meeting.
4. A meeting will be held in the third week of March where the Building & Development Committee of the Milwaukee Public Library Board of Trustees will take up the responses to the Request for Quote (RFQ) that the Library Board of Trustees issued for the design of the new library interior space.
5. HSI/WiRED will submit an application for preliminary approval from the US Department of Housing and Urban Development (HUD) for a loan guarantee. HUD has a 90-day review process.
6. HSI/WiRED will submit a final application for a loan guarantee from HUD. HUD requires a thorough application with 90% of an applicants construction plans.
7. Construction could begin in late 2012, with the yet-to-be-identified location for the temporary library opening as the existing East Library closes.
8. The project is scheduled to open in the spring of 2014.

Audience Questions

A number of questions were asked of the officials and development team in attendance. I have included summarized versions of many of the questions and answers below in an attempt to provide the most information about the project, but not to require one to read a word-by-word transcript of the meeting. The answers are not mine, but are paraphrased from the officials in the room.

Who owns what?

The current library will be sold to the development team for $20,000. They will in turn construct the mixed-use building and return the white-box (empty) library space back to the city/library under a condominium ownership structure.

Tax Base?

The new building will be taxable, with the exception of the library condominium. The project is estimated to cost up to $15 million, and a standard assessment will determine what the actual assessed value of the building is.

99-Year Land Lease a Better Deal?

The response from both Blair Williams of the development team and Alderman Nik Kovac was no, that a land lease would not be a better deal. It was explained that this is the most cost effective way to get a new library. In turn for essentially getting the land for free, the developer is returning the city a new library shell for free. Blair Williams noted that, with the exception of possibly Park Lafayette, this deal is likely the most paid for land in the City of Milwaukee (the price taking the form of the cost to build the library shell).

It was noted that the city could have likely received more money by flat out selling the land, but then they would have one less library. Paula Kieley mentioned that the city will still have to spend around $3 million to build-out the library space, but that is less than the cost of the last stand-alone library built in 2003 at $4.3 million. It was mentioned that the stand-alone libraries also do not generate any tax revenue, the revenue from which will offset the cost of the new library’s build-out.

Financing?

Blair Williams fielded this question detailing that because of the smaller size of the guarantee compared to other HUD projects the project would have a shorter approval routing. Traditionally applications go first to the Milwaukee office, then the Minneapolis office, and finally to the head office in Washington, D.C. This project will only need to go as far as Minneapolis. He mentioned that in their preliminary discussions with HUD they have agreed it is a promising project. A preliminary application and a firm application are still both needed to get full approval.  The HUD loan guarantee will be used to develop the building with market-rate apartments.

Current Library Size?

The current library is 15,000 square-feet, and the new library will be 16,000 square feet.

Compared to Villard Square Library?

Two things were mentioned. One, that the market is substantially different. Two, that the Villard Square Library (the original MPL mixed-use development) uses WHEDA tax credits instead of HUD financing, which results in the apartments being built to the requirements of the credits, in this case family-sized.

Alderman Kovac used this question as an opportunity to lament the fact that WHEDA credits are given out based on census tract, and that that policy makes the east end of North Avenue unlikely to receive the credits. He indicated that this is not a good way to help facilitate economically integrated neighborhoods, and that he has made his views clear to WHEDA.

Would a 30-story building, like The Moderne, have generated more money?

It was indicated that yes it probably would have, but that the neighborhood might not have allowed it and developers might not have wanted to build it. Kovac indicated that the current zoning calls for a minimum of 18 feet, and a maximum height of 60 feet. He said he hopes to have that minimum boosted to 30 feet, and has introduced a file to do so. He noted that he believes the towers belong downtown, and that smaller scaled five and six story development’s better makeup the urban character of Milwaukee’s urban neighborhoods, much as similarly scaled buildings do in Paris.

Green roof? Relationship to library?

Blair Williams was open in admitting that the green roof on the project is not truly there as an environmental solution. It is more a reality of the design. He stated that the relationship between the library and the development would be spelled out in their agreement, and things such as the water accumulating on the roof would be detailed.

Reuse of materials? Salvage from destruction of building?

It was noted that the stained glass in the current building will be saved to be integrated into the facade of the new building. Other materials would be saved as commodities, but because of the age of many of the fixtures they may not be reused in their current configuration. Bids from demolition teams will indicate how much will be saved. Alderman Kovac drew audience laughter noting that the books would be saved.

Parking?

There will be 113 underground stalls for residents. With 87 stalls for the one-bedroom apartments, and 26 stalls for the 13 two-bedroom apartments. Underground parking will be built property line to property line. An additional 40 stalls will be for library employees and patrons at the ground-level.

The Moderne

As the US economy continued its slow recovery from the Great Recession, Milwaukee was left with a couple of failed development projects to complete, a changing real estate market, the opportunity to make small infrastructure changes, and questions about the future of transit.  In 2011, some of these ‘failed projects’ moved towards becoming successes, while the developers in town shifted from condominium development to apartments and hotels.  Small changes to the built environment came in the form of new bike infrastructure, and the conversion of streets to two-way traffic.  Although the Milwaukee County Transit System once again faced budget cuts, there was movement in bringing new modern transit service to Milwaukee in the form of express busing.

First Place on the River, Park Lafayette, and The Residences on Water all ended up in serious financial trouble, and in some cases in drawn out legal battles.  Park Lafayette, which had been considered by many a failure, became a turnaround success under the guidance of the Mandel Group in 2011 as it was converted from high-end condos to luxury apartments, and today it is 93% occupied.  Equally as impressive of a turnaround story is The Point on the River (formally First Place on the River).  The developer had run out of funding, and once the lending bank took over they brought in the  Mandel Group to complete the project.  Ever since, Mandel Group and Garrison Partners have been steadily selling units in the project, and while there were over 45 units available this time last year there are only 11 available for sale today.  The one significant project that has yet to be resolved is The Residences on Water, but signs indicate that the drawn out legal battle surrounding it is coming to a close.

The apartment market saw continued development through a strong reliance on WHEDA tax credits and other forms of  government financing (due to the weakened financial industry).  The construction of the Beerline B Apartments, which is being funded with WHEDA tax credits, nears completion.  Another WHEDA funded project, the 73-unit National City Lofts in Walker’s Point, began accepting tenants in October.  Although Mercy Housing Lakefront’s East Side apartment proposal received various city approvals, and appeared on the verge of moving forward, it failed to obtain WHEDA tax credits to support the funding of the project.  The second phase of The North End development, which will include two buildings and 155-units, gained approval for a $4.6 million loan from the City of Milwaukee and will utilize $26.9 million in WHEDA bonding to construct the project.  The most visible development in 2011 has been the construction of  the 30-story 203-unit apartment building, The Moderne.  It was financed with a $42.4 million loan from the AFL-CIO Housing Investment Trust (HIT), a $9.3 million loan by the City of Milwaukee, and $5 million private equity, and expects to be topping off in early 2012.

Hotel development became a hot area of development and controversy in 2011.  The controversial Marriott Hotel project was approved by the city, and in part because of the debate more of the historic buildings than originally proposed will be saved.  Unlike the Marriott project, two other downtown hotels are being developed within historic structures without significant demolition.  A proposal that would develop a Hilton Gardens Hotel within the Historic Loyalty Building in downtown Milwaukee worked through legal issues allowing for construction to get underway.  At The Brewery, Gorman & Company has started the redevelopment of the former brewhouse building into a boutique hotel.

Alterra's On-Street Bicycle Corral

The built environment saw small, but important improvements in 2011.  Wells Street was finally converted to two-way traffic and carmaggedon didn’t follow.  The streetscaping of Broadway in the Historic Third Ward, which will tie the district together, is finally being completed.  Bay View saw Milwaukee’s first raised bike lane built, and on-street bike corrals began popping up on streets around the East Side.  S. 2nd Street, in Walker’s Point, re-opened with the new street redesign, and quickly saw numerous establishments add cafe seating, and a the construction of a new building, the Milwaukee Fix, get underway.

Transit both made steps forward and steps backwards in 2011.  As we believed would happen, cuts to mass transit funding were deep at the state level, and threatened to push MCTS off the cliff.  Although new County Executive Chris Abele worked to maintain transit service by converting some routes to express routes to save money, this still represented a net reduction in service.  At the same time, the Milwaukee Streetcar project was approved by the Common Council on a 10-5 vote this year and has now proceeded into final engineering.  Though as we feared a challenge is being made to Milwaukee’s local control.  Brett Healy, of Oconomowoc, has petitioned the Public Service Commission to rule that, despite local ordinance, the City of Milwaukee must pay the cost to re-locate utilities operating in the public rights-of-way necessitated by the streetcar construction.

In 2011 Milwaukee continued to face a difficult financial and political environment, but managed to move forward on improvements to the built environment, transit, and many significant development projects.

The new East Library?

The Milwaukee Public Library Board of Trustee’s Building and Development Committee met at the East Library on Wednesday night to hear final proposals from the three respondents to the East Library Redevelopment RFP. The committee heard presentations from Stonehouse Development, Gorman & Company, and HSI Properties, and asked a number of questions of each of their presentations. Following a closed session for deliberations, the Building and Development Committee voted to move the proposal from HSI Properties forward to the full Library Board.

Following a public meeting held by Alderman Nik Kovac (a Library Board Trustee)  in September, all three applicants were previously granted additional time to refine their designs. This meeting provided each team with 20 minutes to use the projector to go over their design, and an additional 15 minutes for questions from the committee, and other trustees in attendance (as well as written questions from the audience as selected by Committee Chair John Gurda).

In attendance from the committee were Chair John Gurda, Vice Chair and Alderwoman Milele Coggs, Sharon Cook, Supervisor Theo Lipscomb, and Sam McGovern-Rowen. Also in attendance were Library Director Paula Kiely, Alderman Nik Kovac, and Board President and Alderman Ashanti Hamilton.

What follows is an attempt to capture the highlights of each presentation, as well as the most significant questions.

Stonehouse Development

Stonehouse was the first group to present. Rich Arneson, Stonehouse Vice President, led much of the team’s presentation, with assistance from Mike Bahr and Scott Davis of Plunkett Raysich Architects. Arneson emphasized many of the firms green accomplishments during the presentation. He also highlighted Stonehouse’s experience with WEHDA financing, the route his firm proposed to go for their design.

The architectural team highlighted the pocket park in their design along Cramer Street that would be available to the public. They also noted the library aspect of the project was supposed to be a modern interpretation of the facade on the former Pizza Man restaurant. The team has branded the window bays on the first floor as “windows on learning”, where children could sit and read. They noted that the tower piece on the corner of Cramer and North was inspired by the binding of a book.

The Stonehouse proposal included 80 residential units, 10 at market-rate, and 70 affordable units. The building was to be wrapped in eight three-bedroom townhomes.

John Gurda asked what was on the roof in the proposal, with Arneson noting the roof included solar panels, whose visibility could be adjusted.

Theo Lipscomb asked about the viability of getting the credits, to which Arneson that this was one of the best sites in Milwaukee, and that his firm has a good track record with receiving the low-income housing tax credits (LIHTC) from WHEDA. Sam McGovern-Rowen asked about the price per credit Stonehouse had budgeted to receive (87.50%, Gorman had budgeted the credits at 85% of their value). Arneson noted that this project was based on information they have received from a banking partner they had previously worked with, and that that number could end up even being higher.

Nik Kovac asked if a proposal of just market rate housing was considered? The response was yes, but that the funding as proposed in their response gave the best budget for the project. Kovac followed that up by asking about the mix between affordable and market rate, to which Arneson emphasized that the tax credits were a competitive process (a refrain that would be heard across all teams) and that to get the maximum number of points in the category a mix of 15% market-rate housing was needed, and that his firm had found a way to make 12% work.

An audience member, through a written comment, asked a series of parking questions. The response noted that parking was provided at a rate of one stall per unit, and that it would cost $60/month. It was also noted that the library parking would be separated underground from the residential parking. An additional question was asked about the proposed building’s height, to which the team responded it was a few feet below the zoning maximum at 54 feet.

A question about the location of the pocket park led the team to note that the building was designed to be built to the urban line in front, and that the park was used to break up the mass of the building.

Nik Kovac asked about the extra space in the building (1,200-1,500 square feet) as retail, to which the architectural team noted it was likely in the wrong spot for such a use, but could be redesigned.

• Stonehouse Revised Submittal (PDF)
• Stonehouse Revised Budget and Financial Projections (PDF)
• Stonehouse Original Proposal (PDF)

Gorman & Company

The Gorman presentation was led by firm Development Manager and General Counsel Ted Matkom. Matkom noted that the firm has an in-house architectural team as well as general contracting and property management teams. He admitted the firm’s initial design was lacking. He noted that they have now teamed with Eppstein Uhen Architects, to which President and CEO Greg Uhen was on hand to assist with the presentation. Matkom noted numerous other projects they have completed including the recently opened Villard Square Branch of the Milwaukee Public Library.

The design of the proposed 4-story building was shown to include a courtyard on the east side for residents, as well as town homes and all of the parking located completely below grade. The building was designed in a C shape, because of the uncertainty of what could be located to the east of the building in the future. A landscaped outdoor green space along Cramer Street was included for the library, as well as an optional second story patio and community room (would be converted to more units if the library elected not to purchase it). The goal for the project was to achieve a LEED Silver rating.

The building was to include (under their WHEDA funded model) 73 units, 57 one-bedroom units, 8 two-bedroom units, and 8 three-bedroom units, with a 68 to 5 split between affordable and market-rate units. The market rate proposal would have included 80 units in the form of 21 studio units, 43 one-bedroom units, 8 two-bedroom units, and 8 three-bedroom units. In both models, 85 parking spaces for the residents would have been included, as well as 41 for the library.

The truly unique aspect of Gorman’s proposal was that they were asking the library to pay $1,958,000 for the library space. This led to a series of questions for clarification where Ashanti Hamilton asked for a detailed explanation noting that “I must be slow”, and a follow-up question from John Gurda where he noted “I must be slower than Ashanti”, as well as questions from other members of the committee. Matkom noted that although on the face of it giving the land away (valued at roughly $2 million) for in exchange for a roughly $1.5 million library shell makes sense, in reality the value of the land is never realized by the developer because the library shell goes back on the land. Matkom noted that the rents would feasibly only cover the cost of construction, and that they had worked hard, but couldn’t make the numbers work. In response to a question from Hamilton, Matkom noted that yes, it is as “bad as it sounds”, the bottom line is that the library would need to come up with $2 million for this deal to work.

For posterity’s sake, Gorman broke down the cost of the library shell as follows.

• Cost per SF: $75
• Shell construction cost: $1,233,000
• Rooftop improvements: $125,000
• Library underground parking: $600,000
• Total: $1,958,000

Milele Coggs asked a question about the “band” that wraps the front of the building, and what could be done with it. The team responded that it could be made up of any number of materials, and that it could be used for a variety of things including public art.

Nik Kovac asked about  cost savings if the library didn’t want the second floor space, Matkom noted that this would shave about $200,000 off the cost of the shell.

• Gorman Revised Submittal (PDF)
• Gorman Revised Budget and Financial Projections (PDF)
• Gorman Original Proposal (PDF)

HSI Properties

Blair Williams, of WiRED Properties, led the presentation for the HSI team (the confusion between the two developer’s partnership was addressed later). The team also includes Engberg/Anderson who designed the Villard Library (as well as the Bay View Library and over 90 other libraries). Williams began by noting that he lives only a few blocks away, and that this is the library he brings his daughter to. He stated his believe that a market rate project is the best fit for the neighborhood. Like the other teams, he indicated this was a challenging project, stating that the “biggest challenge is you extract no value from the land the library sits in.”

Mark Ernest from Enberg Anderson noted that his firm did the 1999 master plan for North Avenue, and that the design follows the proposed architectural review board (one can rest assured there will be more on the proposed board in future articles). He also noted that his firm proposing using the existing stained glass in the building (if you look close, it’s there), more prominently in the facade of the new building.

Blair Williams highlighted that the development would include an option 2,500-5,000 of retail space on North Avenue, set back slightly so that the library was the most prominent feature. He noted that they were open to deed restrictions on the retail stall.

The HSI proposal includes two unique aspects, developing the building with only market-rate units (through HUD financing support) and surface-level library parking. The U.S. Department of Housing and Urban Development (HUD) financing support, something Williams noted HSI has experience through a recent project in Wauwatosa, would come in the form of a loan guarantee from the Section 221(d)(4) mortgage insurance program. Williams noted that while the loan guarantee is not a for sure thing, there is a very good reason to believe the outcome of the process will be positive. He stated that the guarantee’s are awarded as part of a competitive scoring process, and that one of the criteria is density. Noting that “the least expensive floor you build is the next one”, he explained that since their initial proposal they added a floor to increase the density of the building. Williams did state that the HUD process could take 10-12 months, and that final design would need to be completed before the final application was made.

The library parking is proposed to be located at the surface level behind the library, as it is currently. Similar to WiRED’s development in Shorewood (The Cornerstone, noted for its most visible tenant, Alterra), the parking entrance will be located in the middle of the building, and the building will span the entrance. The decision was made have street-level parking based on a perceived preference of Milwaukeean’s to park at street-level, as well as the ability for library officials to keep watch over the lots, and the ability to avoid any takeover by default of underground library stalls by residents.

Paul Kiely asked about the two developers, to which Blair noted they both “block and tackle”, but that they each bring their own specialties. HSI brings a lot of financing experience to the table, including experience with HUD, and WiRED brings multi-family experience. He said they are in many respects “co-developers”. The HSI representative in attendance nodded in agreement.

Nik Kovac asked about the surface parking being a design or finance decision. Williams indicated that although it was marginally cheaper (the length of the property is still residential parking underground), it was a design decision. Anticipating a second question from Kovac, he also noted that they didn’t use town houses because they are loss leaders, and there is a security problem “perception” of having your front door right at ground level. Williams noted that many of the homes of the East Side do not have entrances only a step or two off the street.

• HSI Revised Submittal (PDF)
• HSI Revised Budget and Financial Projections (PDF)
• HSI Original Proposal (PDF)

HSI's Revised Proposal - From North Avenue	HSI Floor Plan	HSI Floor Plan
HSI's Revised Proposal Night Time	HSI's Revised Proposal - Cramer Street	HSI's Revised Prosal - Thomas and Cramer

Moving Forward

Following a closed session to deliberate on the proposals, the Building and Development Committee voted to move forward the HSI Properties proposal. This proposal will now go before the full Library Board. It would have been interesting to be in the room to listen to the deliberations over the Gorman proposal, who appeared to be sounding an alarm about the financial viability of the project as conceived. If the project fails to get off the ground, it will be interesting to see if a revised RFP will emerge with terms similar to what Gorman proposed.

It is important to note that the HSI design is not final, and is likely to be slightly adjusted as the project moves forward. There were, however, no significant reservations about it raised, although there was debate about the lack of green space. Also noteworthy, under HSI’s timeline the new library would not open until 2014.

Best of luck to HSI, WiRED, and Engberg Anderson as they move forward.