Mitchell Street Building Saved, New Development Planned For Parking Lots
Developer's new plan would still bring more affordable housing to Mitchell Street.
The Encore 2023 plan. Rendering by Barry C. Yang.
Aspiring developer Zuwena Cotton is changing plans for her first major development.
Cotton previously secured approval to demolish a historically-protected, two-story building to construct a new affordable apartment building. But she’s now saving the historic building and planning to develop the new building and a series of townhomes on rear parking lots.
The developer told the Zoning, Neighborhoods & Development Committee Tuesday that she’s excited to move forward with the proposal for Historic Mitchell Street.
Her new plan involves partnering with Cinnaire Solutions to develop a five-story, 51-unit apartment building atop a parking lot at 1718-1734 S. 12th St. A city-owned parking lot, 1747 S. 12th St., would be redeveloped with eight three-bedroom, two-story townhomes. The city, pending full council approval, would give Cotton “site control” of the approximately 13,600-square-foot lot.
The proposal relies on securing competitively-awarded low-income housing tax credits from the Wisconsin Housing and Economic Development Authority. The annual allocation of federal income tax credits, the largest affordable housing program in the state, is announced in spring. Based on the scoring rubric, prior to applying developers must effectively own or control the planned development sites and have secured zoning approval. Maintaining control of the property, and negotiating a future purchase, is conditioned on Cotton securing the credits.
Cotton, head of BBE Investments and Development, said the development as a whole would have 13 three-bedroom units. “That’s something that’s really needed,” said the developer, referencing a market study. “The trend is families with more money are moving into the neighborhood. They can get larger apartments with more money, that’s displacing the residents that live there.” Cotton said the proposal would be subject to the city’s anti-displacement policy, which requires developers receiving city support in targeted areas to prioritize leasing to area residents.
“I’m in full support and urge my colleagues to support this moving forward,” said Common Council President José G. Pérez. The alderman, who represents the area, also previously supported Cotton’s plan to demolish the historically-protected building.
“Congratulations,” said Alderman Russell W. Stamper, II after the latest plans were presented. The committee unanimously endorsed the proposal.
The five-story building would have 34 indoor parking stalls and two community rooms on its first floor. The upper floors, which would have a U shape, would contain a mix of studio, one, two and three bedroom apartments.
Six of the townhomes would face W. Maple Street. Two would face S. 12th Street and the five-story building. Eleven parking spaces, a mix of attached garages and outdoor spaces, would be provided for the townhome residents.
Catalyst Construction would serve as the general contractor. According to documents submitted to the city, Barry C. Yang continues to serve as the project architect.
The Board of Zoning Appeals previously endorsed a dimensional variance to support the new building. The proposal did not meet the minimum lot area per dwelling unit for the 17,848-square-foot lot. Cotton’s application to the board describes the development as a $14 million project. “The current site is a vacant lot that serves no purpose,” wrote Cotton.
The low-income tax credit program requires specific units to be set aside at below-market rates, targeted at 30% of a household’s income, for qualifying individuals. Developers commonly sell the credits to institutional investors to raise project equity.
The city previously declared its parking lot surplus in 2022. On Tuesday, Cotton said the lots have attracted nuisance activity. “I personally fenced in my lot, and then the city fenced in their lot,” said the developer.
What About The Historic Building?
A Department of City Development report makes a building Cotton once sought to demolish for its alleged poor condition sound like a well-performing investment.
The site control report states, “Ms. Cotton currently owns a commercial building at 1101 West Mitchell, which is thriving with 8 tenants. “
Recently acquired tenants, according to occupancy permits, include Public Allies, EZ Rentals, the Alma Center, Your Move MKE, We Adapt, Urbanize Finance, Latin Chills Milwaukee, Paradigm Shyft LLC and Our Community LTD.
The building, 1101-1113 W. Historic Mitchell St., was occupied by The Grand department store until 1980. The structure, clad in the Art Deco style, dates back to 1895. It’s historically protected as part of the Mitchell Street Historic District.
Cotton purchased the building in September 2020 for $350,000. “I got it at a really good price,” she told the Historic Preservation Commission in December 2022. “The building was already in poor condition.”
The commission denied Cotton’s request for demolition, citing the city’s historic preservation ordinance and concerns about the enforceability of restrictions on demolition without a replacement confirmed. But she successfully appealed the decision to the full Common Council, which can consider economic and other factors in reviewing commission decisions.
Cotton had initially planned to build 11 townhomes on both city-owned lot and the lot that would now receive the five-story building.
A former educator, she is the owner of local Amazon service delivery partner Legacy Transit. The contracted companies own and operate the vans and other vehicles that make deliveries for the online retailer. Cotton has also engaged in real estate investing.
She is a graduate of the Associates in Commercial Real Estate (ACRE) program that trains women and minorities for careers in real estate. Cinnaire President Chris Laurent serves on the ACRE board and serves as an instructor.
Renderings and Site Plan
Photos
2022 Plan Renderings
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Related Legislation: File 231177
