City Needs Act of Congress Because of Couture-Streetcar Delay
City officials admit project is behind schedule.
Even after shovels went into the ground, The Couture is still causing headaches at City Hall.
The 44-story project, according to multiple city officials, is behind schedule. And as a result, the city won’t be able to put the lakefront line streetcar extension into service this summer as required by a $14.2 million federal grant agreement. Milwaukee will need another extension on the grant, but is running into a fixed deadline on the grant program.
Meaning Congress must take action to bail the city out. The 2015 grant program expires on Sep. 30.
A revised agreement, which will need Common Council approval, would allow the streetcar line to open by October 31, 2023.
“This puts the completion of the lakefront line five years late,” said Alderman Robert Bauman in an interview.
It also creates the situation where the city may have to collect on a $1.41 million personal guarantee from Barrett Lo Visionary Development leaders Rick Barrett and Tan Lo. The developers guaranteed the unspent portion of the federal grant in the event they weren’t able to meet a May 1 deadline to allow the city to begin streetcar track construction so that the line could be placed into use by June 30.
“While we are confident that we will be successful in enacting the special legislation, the development agreement requires that the developer personally guarantee remaining TIGER funding so that in no case will the City be responsible for any remaining TIGER grant funding that is not recovered through the TIGER grant,” wrote Windsor.
The revised agreement, adopted in March 2021, created the guaranty, but also created a shield so that Barrett, no relation to the former mayor, and Lo were personally liable, not the project investors.
The city is providing $19.5 million for public infrastructure costs related to the project via a tax incremental financing district. Those funds cover the costs of a transit concourse, which will also be used by the East-West Bus Rapid Transit line, and a sewer relocation.
The Hop is intended to loop through a three-story concourse at the base of the building, but the tracks leading to the building have sat unlinked since 2018 as the tower was repeatedly delayed. When the rest of the system opened in November 2018, Barrett Lo was celebrating being invited to apply for a formal federal loan guarantee for its own project.
Construction is progressing on the $190 million, 312-unit apartment tower. A tower crane was installed in the past week.
During a November site tour, Barrett said the building was on track to be completed in 2023, but wouldn’t commit to a month or quarter.
“There were a couple of things below grade and we just haven’t figured out where we will end,” said Barrett.
In a statement issued Tuesday, Barrett expanded on those challenges. “As is expected with a major construction project on a 2-acre downtown site, there have been a few unforeseen conditions encountered while working below grade. In particular, we found two major discoveries that were not on the survey: more than 50 piles which needed to be identified and removed, and a We Energies transformer serving downtown which needed to be designed around. These challenges were addressed and construction is advancing,” said the developer.
“There is every reason to believe that the Couture, including the innovative transportation concourse, will be completed as envisioned,” said the Department of City Development in a statement. “However, based on the developer’s current construction schedule, commencement of Lakefront Line service is not expected to occur this summer as anticipated. Everyone, from our partners in the private sector to each level of government, is working in good faith to see the Couture completed and federal TIGER funding dedicated to the L-Line project preserved. We believe the development challenges of the Couture have been overcome and we look forward to the completion of this exciting addition to Milwaukee’s skyline.”
Bauman vs. Spencer
While the issues with the streetcar’s timing play out, the city remains stuck on another issue relating to the development agreement.
A third party is supposed to adjudicate whether Bauman acted inappropriately, as City Attorney Tearman Spencer alleges, in getting Barrett Lo Visionary Development to contribute $100,000 to an anti-displacement fund in exchange for the city granting a requested liability shield for the project investors.
But retired judge Chuck Kahn had to recuse himself from ruling on the case after a Milwaukee Water Works main break flooded the basement of his Railway Exchange building in November. Kahn was to be paid up to $50,000 for ruling on the matter, but now finds himself in the position of having to potentially sue the city.
The council hired attorney Michael Maistelman to represent itself. The private attorney could be paid up to $50,000, which could trigger a debate over a $100,000 item costing an additional $100,000 to resolve. The City Attorney’s Office is representing itself.
November Construction Photos
May Construction Photos
Renderings
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More about the Couture
- Streetcar Begins Daily Service To The Couture, BRT Will Soon Follow - Jeramey Jannene - Apr 11th, 2024
- Friday Photos: See The View From The Couture’s Upper Levels - Jeramey Jannene - Mar 8th, 2024
- The Couture Shows Off First Apartments - Jeramey Jannene - Jan 24th, 2024
- Transportation: Streetcar Extension Opens Sunday - Jeramey Jannene - Oct 28th, 2023
- Lakefront Streetcar Extension Opens October 29 - Jeramey Jannene - Aug 22nd, 2023
- Eyes on Milwaukee: See Inside The Couture’s Rise - Jeramey Jannene - Mar 9th, 2023
- Transportation: Congress Extends Streetcar Grant - Jeramey Jannene - Mar 16th, 2022
- Eyes on Milwaukee: The Couture Starts Massive Concrete Pour - Jeramey Jannene - Mar 16th, 2022
- City Hall: Council Could End Fight Over Couture Provision - Jeramey Jannene - Feb 22nd, 2022
- Eyes on Milwaukee: The Couture Completion Delayed Until End of 2023 - Jeramey Jannene - Feb 3rd, 2022
Read more about Couture here
More about the Milwaukee Streetcar
For more project details, including the project timeline, financing, route and possible extensions, see our extensive past coverage.
- Council Kills Streetcar’s ‘Festivals Line’ - Jeramey Jannene - Jul 31st, 2024
- Streetcar Will Use Festivals-Oriented Route Through Summer - Jeramey Jannene - Jul 9th, 2024
- The Hop’s Lines Will Merge For Easier Summerfest Service - Jeramey Jannene - May 30th, 2024
- Streetcar Begins Daily Service To The Couture, BRT Will Soon Follow - Jeramey Jannene - Apr 11th, 2024
- Milwaukee’s Three Streetcar Extensions Need Mayoral Direction - Jeramey Jannene - Nov 8th, 2023
- Transportation: Streetcar Extension Opens Sunday - Jeramey Jannene - Oct 28th, 2023
- Ride Along On Streetcar Extension Before It Opens - Jeramey Jannene - Oct 11th, 2023
- Lakefront Streetcar Extension Opens October 29 - Jeramey Jannene - Aug 22nd, 2023
- Streetcar Ridership Has Climbed For 27 Straight Months Year-Over-Year - Jeramey Jannene - Jul 28th, 2023
- Transportation: Harley-Davidson Is New Streetcar Sponsor - Jeramey Jannene - Jul 7th, 2023
Read more about Milwaukee Streetcar here
Political Contributions Tracker
Displaying political contributions between people mentioned in this story. Learn more.
- September 11, 2014 - Robert Bauman received $386 from Tan Lo
- September 11, 2014 - Robert Bauman received $100 from Chuck Kahn
The Coture seems to be coming a Foxcon type of boondoggle. The developer was essentially given the most lucrative two acres on the western shore of Lake Michigan. For a developer who is ready to put up a $191,000,000 building, it is obvious that his shoddy and incomplete planning resulted in the delays that we are seeing. I would predict the city will continue to see construction issues with this project over the years.