The Moderne Gains Common Council Approval for City Loans

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 Willie Hines and Alderman Joe 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 Bob 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 Nik 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 Tom 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