Rather Than Razed, Coggs Building Could Be Turned Into Affordable Housing

Marcia P. Coggs Human Services Center, 1220 W. Vliet St. Photo by Jeramey Jannene.

Money set aside to demolish the Marcia P. Coggs Human Services building, 1220 W. Vliet St., could instead be used to redevelop it into affordable housing.

The county initially planned to demolish the building to create parking for the new $42 million Department of Health and Human Services (DHHS) building it is developing a few blocks away at 1230 W. Cherry St. But Gorman & Company has proposed redeveloping the building into 65 affordable housing units, with commercial space on the first floor and underground parking.

Gorman plans to acquire the building through a development agreement with the county and purchase the land for $1 million with a payment plan currently being negotiated.

The estimated development cost is approximately $32.3 million. Gorman has financing from six sources that bring it within $3.5 million of the total cost. The county wants to repurpose $2.5 million in American Rescue Plan Act (ARPA) funds allocated for demolition of the building to support the project, and narrow Gorman’s financing gap. The funding was originally part of the more than $30 million in federal ARPA funding allocated to the new human services building project.

If Gorman is successful, the project would create 200 jobs, add to Milwaukee’s affordable housing stock, repurpose a historic building, add to the county’s investments in the King Park neighborhood and activate this section of W. Vliet St., according to a county report by Celia Benton, economic development director.

A 2021 assessment of the Coggs building concluded the county should sell the building, as maintenance costs mounted and the building’s largest tenant, the Wisconsin Department of Health Services, planned to leave. The state office, which provided access to services like FoodShare, moved to a new location on the city’s Northwest Side in 2022.

DHHS leaders initially wanted to turn the Coggs building into a headquarters and office building for the department, which is the largest in county government and accounts for approximately 50% of the annual budget. This effort eventually led to the development of a new human services building nearby.

The county began soliciting proposals for the historic building in 2023. It was built in 1910, with an expansion in 1923, and used as a Schuster’s Department Store until 1961. The county bought it in 1963, turning it into a welfare office. DHHS plans to vacate the building in mid-2025 when development of the new human services building is completed.

Gorman has experience converting historic buildings in Milwaukee for new uses. Plans for the Coggs building include one and three-bedroom apartments ranging from 740 square feet to 1,740 square feet. The apartments will rent at rates between $823 and $1,576 a month to keep within the definition of affordable housing set by the U.S. Department of Housing and Urban Development.

The first floor will include 17,000 square feet for Milwaukee County Behavioral Services and 1,500 square feet of commercial space for a cafe. Solar panels will be installed on the roof to reduce energy costs. A new underground parking structure will include 90 parking spots.

Gorman has stitched together a financing stack including a Wisconsin Housing and Economic Development Association (WHEDA) loan ($4,194,000 ), Federal Home Loan Bank of Chicago financing ($2,000,000), Tax Incremental Financing from the City of Milwaukee ($875,0000), a Deferred Developer Fee ($675,000), Low Income Housing Tax Credits ($13.9 million) and Historic Tax Credits ($7.175 million).

If the county board approves repurposing the demolition funds for the project, it will not be released until Gorman closes the remaining $1 million financing gap. The proposal will go before the county board for a vote in September.